1099 Filing

About 1099-MISC Forms

If your business made payments for services performed for a trade or business by people not treated as its employees you may need to file Form 1099-MISC. Usually, businesses file Form 1099-MISC when they need to report miscellaneous income for payments of $600 by people not treated as its employees. Common 1099-MISC filing examples include:

1099-MISC State & Federal Deadlines

1099-MISC deadlines and requirements vary from state to state. That's why we've developed an easy tool to determine your filing requirement. Visit our Deadline Calculator and we'll tell you the federal, state and recipient deadline for current reporting year. We’ve also included the number of parts you'll need to help you plan when ordering forms, envelopes and stamps.

NEW! Beginning in 2017 the IRS requires Form 1099-MISC to be filed on or before January 31, 2017, when you are reporting nonemployee compensation payments in box 7.

Please select State and Form Type using the dropdowns below.

1099-MISC Filing Requirements

1099-MISC Copies

If your business is required to file Form 1099-MISC, you will need to provide multiple copies. To avoid penalties, make sure to send the correct copy to the correct audience (when applicable). The following chart will help you determine the correct copy that needs to be send to each audience.

  • Copy A: Internal Revenue Service
  • Copy B: Recipient
  • Copy C: Payer
  • Copy D: State Tax Department (where applicable)
  • Copy 1: To be filed with recipient's state income tax return (where applicable)

E-File Threshold

If you need to file more than 250 1099-MISC forms, you are required to file electronically with the IRS.

Federal Transmittal

In addition to filing Form 1099-MISC to the IRS, you may be required to file a transmittal (cover sheet). If you are sending paper copies to the IRS you will need to include Form 1096. This transmittal is not required if you are filing electronically.

Our Dedicated Expertise

Understanding all of the rules associated with 1099 reporting can be confusing, but we're here to help. Greatland has full-time experts dedicated to understanding 1099 reporting compliance. We'll help you better understand the reporting requirements and guide you through the process of filing your forms to the IRS, state agency (where applicable) and sending copies to your employees.

We triple our support staff during peak filing time, with extended hours throughout the week and on Saturdays. Quite simply, you will not find better support anywhere in the industry.

1099-MISC Online & Software Filing Options

Greatland has three software options that fit your budget and business needs. All three programs include: Federal Filing, State Reporting and Recipient Delivery. Or click here to Compare Pricing & Plans ...

Core

A simple and easy W-2 & 1099 online reporting program designed to meet all filing requirements in minutes.

Yearli Core includes:

  • W-2 & 1099 Forms
  • Quarterly Filing
  • Online Chat & Email
  • Data Entry or Import
  • Compare Plans

Free Annual Subscription +Filing Fees

Create An Account

Performance

The premier online W-2, 1099 and 1095 filing solution with everything a business needs for fast reporting.

Includes everything in Core, plus:

  • ACA Reporting
  • TIN Matching
  • Phone Support
  • Volume Price Discounts
  • Compare Plans

$79 Annual Subscription +Filing Fees

Create An Account

Desktop

This robust software package was designed to help simplify the entire W-2, 1099 and 1095 reporting process.

Includes everything in Performance, plus:

  • Full 94X Library
  • NYS-45, CA DE-9/C Forms
  • 80 State Forms
  • Extensive Printing Options
  • Compare Plans

$399 Annual Subscription +Filing Fees

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1099 Paper Filing Options

Greatland has all the W-2 form types you may need to fulfill your filing requirements. We carry the widest selection of W-2 forms, from blank and preprinted to continuous and pressure seal. We also carry various kits and sets, so you can rest assured you have everything you need this filing season.

1099 Form Best Practices

  • Do type or print entries with black ink only using a 10 pitch (pica) or 12 pitch (elite) font.
  • Do make sure all copies are readable.
  • Do include the decimal points (i.e. cents) in the monetary entries (0000.00).
  • Do verify that the filer’s name, address, and taxpayer identification number (TIN) are the same on both Form 1096 and the attached Forms 1099.
  • Do leave a box blank if it doesn’t apply unless the instructions require that you enter a "0".
  • Do submit a separate Form 1096 with each type of return; for example, Forms 1099-INT and Forms 1099-MISC should each have a separate Form 1096.
  • Do remove pin-feed strips before submission, without tearing the form; continuous forms must be burst apart prior to submission to the Internal Revenue Service.
  • Do report information only in the appropriate boxes provided on the forms; make only one entry in each box unless otherwise indicated in the form’s specific instructions.
  • Do use official forms or substitute forms that meet Internal Revenue Service specifications to avoid the assessment of a fine or penalty.
  • Do send the forms to the Internal Revenue Service in a flat mailing (not folded).
  • Do use pre-printed red drop-out ink forms when filing Copy A of 1099 forms with the Internal Revenue Service.
  • Don't send the same information to the Internal Revenue Service more than once.
  • Don't change the title of any box on any form.
  • Don't use dollar signs ($) (they are preprinted on the forms), ampersands (∓), asterisks (*), commas (,), apostrophes ('), or other special characters in money amount boxes or payee name line.
  • Don't use number signs (#) in any field.
  • Don't use a form to report information that is not properly reportable on that form.
  • Don't cut or separate Copy A of the 1099 forms that are printed two or three to a sheet; if at least one form on the page is correctly completed, you must submit the entire page.
  • Don't submit any copy other than Copy A to the Internal Revenue Service.
  • Don't send photocopies of any forms.
  • Don't staple, tear, or tape any 1099 forms. It will interfere with the Internal Revenue Service’s ability to scan the documents.
  • Don't use prior year forms unless you are reporting prior year information; always use the current year form to report current year information.

1099 General FAQs

If an error is discovered on a return that has been filed with the Internal Revenue Service, it must be corrected as soon as possible by filing Copy A and Form 1096 with the Internal Revenue Service Center for your area. Follow the detailed instructions provided by the Internal Revenue Service to correct errors. Do not cut or separate Copies A of the 1099 forms that are printed two or three to a page. Submit the entire page even if only one of the forms on the page is completed. Do not submit corrected returns to the Internal Revenue Service if you are only correcting state or local information. Contact the state or local tax department for help with this type of correction. Corrected statements must also be provided to all recipients.

The 250 electronic filing threshold is based on the calendar year, not each reporting submission. For example, if an error is discovered and 200 Forms 1099-DIV must be corrected, these filings can be filed either electronically or on paper. If, at a later date, additional errors are discovered and another 150 Forms 1099-DIV must be corrected for the same calendar year, 50 forms from the second batch could be filed on paper; however, the remaining 100 forms must be filed electronically. Any additional 1099-DIV corrections for that particular calendar year would also be required to be filed electronically.

For 1099 forms, the 250 e-file requirement is based on form type. For example, if you have 200 Form 1099-DIV's to be corrected and 200 Form 1099-INT's to be corrected, neither type of form is required to be filed electronically since the number to be corrected is below the 250 e-file threshold for each form type.

Corrections do not have to be filed in the same manner that the originals were filed; however, any filer with 250 or more 1099 form corrections per form type during a calendar year must file them electronically.

You may request an automatic 30-day filing extension by completing Form 8809, Application for Extension of Time to File Information Returns, and sending it to the address listed on the form. You must file Form 8809 by the due date of the return in order to be granted the extension.

You may request a second 30-day extension by filing another Form 8809 before the end of the first extension period. However, this extension request is subject to review and will not automatically be granted. The Internal Revenue Service will review the request and notify you of its acceptance or denial with a written letter of explanation.

These extensions will only extend the due date for filing returns; you must still provide the 1099 forms to the recipients by the due date. You may request a 30-day extension to furnish the statements to recipients by sending a letter on or before the due date to:

Enterprise Computing Center - Martinsburg
Information Reporting Program
Attn: Extension of Time Coordinator
240 Murall Drive
Kearneysville, WV 25430

Your letter must include:

  • Your name and address.
  • Type of return.
  • A reason for delay.
  • Your taxpayer identification number (TIN).
  • A statement that your extension request is for providing statements to recipients.
  • The signature of the payer or authorized agent.

Yes, Copy A of Forms 1099 and Form 1096 must be filed on preprinted red drop out ink forms when filing on paper. All other copies of 1099 forms can be printed in black ink.

There should be no horizontal perforations separating the Copy A forms on each page. However, 1099 forms must be 8" wide. If the 1099 forms are perforated vertically at 8", the perforated tab must be removed when filing Copy A with the Internal Revenue Service. If you use continuous red drop out ink forms, separate into 11" height pages and remove pin feed strips before filing with the Internal Revenue Service.

Perforations are required between the forms on all other copies of Forms 1099.

1099 Form FAQ's

A Form 1099 is used to report a number of different types of information, including taxable income to the Internal Revenue Service. Depending on the type of information being reported, there is a specific 1099 form (e.g. 1099-MISC, 1099-R, etc.) that is required.

Any person or entity who files a Form 1099 on paper must also include Form 1096, which is used to transmit paper 1099 forms to the Internal Revenue Service. A separate 1096 should be used for each type of 1099 form being submitted.

Complete the Form 1096 following the instructions provided by the Internal Revenue Service. Boxes 3, 4 and 5 on Form 1096 should contain the totals from the 1099 forms that are being submitted with it.

Group the 1099 forms by form number and transmit each group with its own Form 1096. For example, if you must file both 1099-DIV and 1099-INT forms, complete one Form 1096 to transmit your 1099-DIV form(s) and another Form 1096 to transmit your 1099-INT form(s). Submit Form 1096 with Copy A of Form(s) 1099 to the Internal Revenue Service.

Reminder: do not staple, paper clip, or tape the forms together as it will interfere with machine reading.

Send Copy A of Form W-2 with Form W-3 to the Social Security Administration. If filing on paper, Form 1096 should be enclosed with Copy A of 1099 forms and sent to one of the following addresses.

If your principal business, office, agency or legal residence is located in Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Vermont, Virginia, West Virginia, or outside the United States.

Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301

If your principal business, office, agency, or legal residence is located in Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming.

Department of the Treasury
Internal Revenue Service Center
Kansas City, MO 64999

If, after you file Forms 1099, you discover additional forms that need to be filed, you must file these forms with a new Form 1096. Do not include copies or information from previously filed returns.

Form 1099-DIV is used to report distributions, such as dividends, capital gain distributions, or nontaxable distributions, that were paid on stock and liquidation distributions. A 1099-DIV must be filed by any individual or entity that has:

  • Paid dividends (including capital gain dividends) and other distributions on stock of $10 or more to an individual.
  • Withheld and paid any foreign tax on dividends and other distributions on stock for an individual.
  • Withheld any federal income tax on dividends under the backup withholding rules for an individual.
  • Paid $600 or more as part of a liquidation to an individual.

Form 1099-INT is used to report interest income. A 1099-INT must be filed by any individual or entity that has:

  • Paid amounts reportable in boxes 1, 3, and 8 of at least $10 (or at least $600 of interest paid in the course of your trade or business as described in the Internal Revenue Service instructions) to an individual.
  • Withheld and paid any foreign tax on interest for an individual.
  • Withheld (and did not refund) any federal income tax under the backup withholding rules regardless of the amount of the payment for an individual.

Complete the information on Form 1099-DIV or 1099-INT following the detailed instructions provided by the Internal Revenue Service. Create and distribute the following copies:

  • Copy A - submit to the Internal Revenue Service (on paper or via electronic filing)
  • Copy B - submit to the recipient for his/her federal income tax return
  • Copy C - retain for the payer's records.

Form 1099-MISC is used to report:

  • Rent or royalty payments.
  • Prizes and awards that were not for services, such as winnings on TV or radio shows.
  • Payments to crew members by owners or operators of fishing boats, including payments of proceeds from sale of catch.
  • Income from non qualified deferred compensation plans.
  • Payments to a physician, physician's corporation, or other supplier of health and medical services.
  • Payments for services performed for a trade or business by people not treated as its employees; examples: fees to subcontractors or directors and golden parachute payments.
  • Fish purchases paid in cash for resale.
  • Crop insurance proceeds.
  • Substitute dividends and tax-exempt interest payments reportable by brokers.
  • Gross proceeds paid to attorneys.

Form 1099-MISC must be filed by any individual or entity that has:

  • Paid at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
  • Paid out $600 or more in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) purchased from anyone engaged in the trade or business of catching fish, or the cash paid from a notional principal contract (not common) to an individual, partnership, or estate.
  • Paid fishing boat proceeds.
  • Paid gross proceeds to an attorney.
  • Form 1099-MISC is also used to report direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment. Lastly, Form 1099-MISC must also be filed for each individual from whom federal income tax has been withheld under backup withholding rules.

Complete the information on Form 1099-MISC following the detailed instructions provided by the Internal Revenue Service. Create and distribute the following copies:

  • Copy A - submit to the Internal Revenue Service (on paper or via electronic filing).
  • Copy B & 2 - submit to the recipient for his/her federal and state (if applicable) income tax returns.
  • Copy 1 - submit to the state tax department, if applicable (on paper or via electronic filing).
  • Copy C - retain for the payer's records.

Form 1099-R is used to report distributions from retirement or profit-sharing plans, any IRA, insurance contracts, and IRA re-characterizations. A 1099-R must be filed by any individual or entity that has:

  • Made a designated distribution or is treated as having made a distribution of $10 or more from profit-sharing or retirements plans, individual retirement arrangements (IRAs), annuities, pensions, insurance contracts, survivor income benefit plans, permanent and total disability payments under life insurance contracts, charitable gift annuities, etc. for an individual.
  • Made reportable disability payments from a retirement plan.
  • Additionally, employers that made death benefit payments that were not made as part of a pension, profit-sharing, or retirement plan must file Form 1099-R.

Complete the information on Form 1099-R following the detailed instructions provided by the Internal Revenue Service. Create and distribute the following copies:

  • Copy A - submit to the Internal Revenue Service (on paper or via electronic filing).
  • Copy B, 2 & C - submit to the recipient for his/her federal, state, city, or local (if applicable) income tax returns and personal records.
  • Copy 1 - submit to the state, city or local tax department, if applicable (on paper or via electronic filing).
  • Copy D - retain for the payer's records.

Form 1099-S is used to report gross proceeds from the sale and exchange of real estate and certain royalty payments.

Generally, Form 1099-S must be filed by the person responsible for closing the real estate transaction. If no one is responsible for closing the transaction following the detailed instructions provided by the Internal Revenue Service, the person responsible for filing is, in the following order:

  • Mortgage lender.
  • Transferor's broker
  • Transferee's broker
  • Transferee

Transactions that are required to be reported consist in whole or in part of the sale or exchange for money, indebtedness, property, or services of any present or future ownership interest in any of the following:

  • Improved or unimproved land, including air space.
  • Inherently permanent structures, including any residential, commercial, or industrial building.
  • A condominium unit and its accompanying fixtures and common elements, including land.
  • Stock in a cooperative housing corporation.

Complete the information on Form 1099-S following the detailed instructions provided by the Internal Revenue Service. Create and distribute the following copies:

  • Copy A - submit to the Internal Revenue Service (on paper or via electronic filing).
  • Copy B - submit to the transferor.
  • Copy C - retain for the filer's records.

1099 Electronic Filing FAQ's

Yes. In fact, the Internal Revenue Service encourages e-filing as the preferred method of filing all 1099s.

Yes. The Internal Revenue Service uses Secure Sockets Layer (SSL) communications protocol and 128-bit encryption to ensure data is transmitted securely over the Internet. This is a highly secure standard and is used by government agencies, software developers, and financial institutions.

Most software companies work with the Internal Revenue Service to offer a 1099 e-filing option. Refer to your software package for the specific steps to e-file.

Depending on the application used, you should retrieve submission statuses either from your software provider or directly from the Internal Revenue Service throughout the filing process. The receipt of your submission will likely be acknowledged with statuses such as "Good", "Bad", or "Not yet processed".

The Internal Revenue Service does not publish all of the situations that will cause a filing to be rejected. However, some common reasons for rejections are:

  • Invalid Employer Identification Number
  • Incorrect distribution code on the 1099-R
  • The Gross Distribution on the 1099-R is less than the Taxable Amount reported.

If you receive a notification indicating that your submission was rejected, you must fix any errors in the form and resubmit the data in the same manner as the original submission. You have 60 days from the date the file was first transmitted to file an acceptable file.

If filing electronically would create an undue hardship, the Internal Revenue Service may waive the electronic filing requirement if you can show cause. To request a waiver, you must apply 45 days before the due date of the return using Internal Revenue Service Form 8508--Request for Waiver from Filing Information Returns Electronically. The waiver, if approved, will provide exemption from the electronic filing rule for the current tax year only. You may not apply for a waiver for more than one tax year at a time.

If you fail to file a correct 1099 by the due date, and cannot show reasonable cause, you may be subject to a penalty. Penalties apply for:

  • Failing to file on time.
  • Failing to include all required information.
  • Failing to meet electronic filing requirements.
  • Failing to file compliant paper forms.
  • Failing to include information that is correct.

The amount of the penalty is based on when the correct 1099 is filed:

  • $30 per form if filed correctly within 30 days of the due date. The maximum penalty is $250,000 per year ($75,000 for small businesses).
  • $60 per form if filed correctly more than 30 days after the due date but by August 1. The maximum penalty is $500,000 per year ($200,000 for small businesses).
  • $100 per form if you file after August 1 or you do not file the required information returns. The maximum penalty is $1,500,000 per year ($500,000 for small businesses).
  • If failure to file a correct information return is due to intentional disregard or not meeting correct information requirements, the penalty is at least $250 per information form with no maximum penalty.

If filing on paper, use prior year 1099 forms to report a prior year’s information following the detailed instructions provided by the Internal Revenue Service. For example, file 2010 1099-MISC information on a 2010 1099-MISC form. Note: You must file the prior year 1096 that matches the year of the 1099 forms being filed.

If filing prior year information electronically, follow your software provider’s instructions for filing prior year information.

Advantages of electronic filing:

  • The deadline for filing Forms 1099 with the Internal Revenue Service is extended by one month, compared to paper filing.
  • Paper handling and mailing is reduced.
  • Reduced environmental impact.
  • Submission status information is provided.

Advantages of paper filing:

  • No software or hardware is required.
  • Familiar process.
  • Little or no technical knowledge required.

For 1099 forms, the 250 e-file requirement is based on form type. For example, if you must file 200 Form 1099-DIV's and 300 Form 1099-INT's, Forms 1099-DIV do not need to be filed electronically since they do not meet the threshold of 250. However, Forms 1099-INT must be filed electronically since they do meet the 250 threshold.