January 27, 2022
Helpful reminders and tips to know before filing 2021 Forms 1099
As the 2021 filing season opens, filers may want to review the due dates for Forms 1099, as well as tips for using the IRS's electronic filing system and changes to reporting thresholds. Familiarity with these points ahead of time can result in a smoother filing experience.
Due dates and extensions
The following chart lists the due dates for sending various Forms 1099 to individuals and the IRS. Filers will generally have more time to submit Forms 1099 to the IRS if they file electronically.
Taxpayers may generally receive an automatic 30-day extension for filings with the IRS. The automatic extension does not apply to Form 1099-NEC. Filers requesting an extension for Form 1099-NEC must provide cause as outlined on Form 8809.
As a reminder, filers must report payments for services of at least $600 on Form 1099-NEC, not Form 1099-MISC. Gross proceeds paid to an attorney and taxable damages should still be reported on the Form 1099-MISC, while most vendor payments should be reported on Form 1099-NEC in the appropriate box.
Please refer to the 2021 General Instructions for Certain Information Returns for more information.
Electronic filing system
The IRS has enhanced the security protocols to enter the FIRE Filing System. As such, users should have the following information on hand for system entry:
The TCC, company name and EIN must exactly match the information provided on Form 4419, Application for Filing Information Returns, or the online Information Returns Application for Transmitter Control Code. Any variations in this information will prevent entry into the system, necessitating a call to the IRS.
While all filers may file information returns electronically, the IRS still only requires electronic filing for 2021 for more than 250 Forms 1099. The threshold for electronic filing is expected to decrease to 100 returns for 2022 and to 10 returns in the years after.
For calendar years after 2021, the reporting threshold has changed for Form 1099-K reporting for third-party settlement organizations. For 2021 reporting, the threshold is $20,000 in aggregate payments and 200 transactions. Beginning in 2022, the threshold is payments over $600 in aggregate and any number of transactions. While the change does not affect the current reporting season, filers must begin collecting necessary information now so they can properly report next year.