Overview
IRS Form 1099-K is crucial for individuals and businesses that receive payments from third-party networks. The 1099-K, also known as the payment card and third-party network transactions, documents the gross amount of all reportable payment transactions processed in a year through payment cards and third-party networks, including PayPal, Venmo, and eBay. The 1099 forms ensure that all income is reported to the IRS, thereby promoting tax compliance.
Form 1099-K Due Date
| Requirement | Due Date |
| 1099-K sent to Recipients | January 31 |
| 1099–K Filed with IRS (paper) | February 28 |
| 1099-K filed with IRS (electronically) | March 31 |
Note: The reporting is done in ‘January, February & March’ of the following year.
State Filing Due Dates for 1099-K
Certain states require businesses to file the 1099 K Form at the state level in addition to federal filing. Each state may have slightly different deadlines, but the current state filings typically align with the 1099-K federal deadline, i.e., January 31 for sending forms to recipients and March 31 for electronic filing with the IRS.
Most of the states file Form 1099-K through the Combined Federal/State Filing (CF/SF) Program. It allows the IRS to electronically forward information returns to participating states. However, not all states take part in CF/SF.
The following states require you to file 1099-K forms directly with the state tax authority:
| State | Filing Deadline |
| Florida | April 30 |
| Illinois | Same as IRS (March 31) |
| New York | April 30 |
| Oregon | Same as IRS (March 31) |
| Tennessee | April 30 |
| Vermont | April 30 |
| Virginia | April 30 |
| Washington, D.C. | Same as IRS (March 31) |
Deadlines for States participating in CF/SF:
| Send to Recipients | January 31 (of the following year) |
| File with IRS (Paper) | February 28 |
| File with IRS (Electronic) | March 31 |
For states participating in the Combined Federal/State Filing (CF/SF) Program, the filing deadlines align with the federal deadlines.
Extension Forms for 1099-K
If you need more time to file the 1099-K Form, you can request an extension by submitting Form 8809, Application for extension of Time to File Information Returns. This Form must be submitted by the original deadline of March 31 for Electronic submission filing. Form 8809 grants you an automatic 30-day extension, providing additional time to file with the IRS and the applicable states. However, this extension does not apply to the deadline for sending the form to Recipients, which remains January 31.
You can submit a Second request for further extensions beyond the initial 30 days, but a valid request is required. Filing on time or requesting an extension is essential to avoid penalties.
If you are looking to extend your filing deadline, Tax1099 can offer convenient eFiling options to file Form 8809 and help you escape potential penalties.
Penalties:
Penalties for Not Filing 1099-K on Time:
If you fail to file the 1099-K by the deadline, you may face penalties based on the delay:
- Up to 30 days late: $70 per From.
- More than 30 days later, but before August 1: $120 per form.
- Filed after August 1 or not filed at all: $310 per form.
Note: For businesses with gross receipts of over $5 million, these penalties may be higher.
Penalties for Inaccurate Information:
Submitting 1099-K forms with incorrect information, such as payment amounts or recipient detail, can result in penalties. The fine is typically $310 per form with inaccurate information but can vary depending on the degree of error.
Unintentional errors or delays:
When errors or delays are deemed unintentional, the IRS may lower penalties. To avoid incurring penalties, it is important to take corrective action immediately upon discovering a mistake. Submitting an amended 1099-K form as soon as possible can help reduce fines.
Ensuring that you file the 1099-K accurately and on time promotes compliance and prevents costly penalties. With multiple deadlines to track, its essential for businesses to stay organized. That’s why Tax1099 is there for your rescue. You can do both federal and state filings with Tax1099 and streamline the process with deadline reminders, error-checking tool to prevent mistakes, and file extension form if required. To maintain further compliance, the platform offers features like TIN-matching, W8.W9 forms, and an AI chatbot where you can ask any 1099 form-related questions and keep records till 4 years.
Sign up with Tax1099 today or schedule a demo request to watch Tax1099 in action!
