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How to Submit 1099s to Recipients Electronically

You can  supply your 1099s to recipients in electronic form rather than furnishing then on paper.  You can post it to a website before the 1099 due date and satisfy the requirements for submitting the IRS form 1099.

But first you have to obtain the recipient’s approval to receive 1099s electronically.  The permission must not be revoked before the due date, either.  Consent to receive the 1099 electronically must be made electronically, too.  This proves the recipient has access to the internet and can use a computer.

If you get new software or hardware you have to get the recipient’s consent all over again.

Post the electronic IRS 1099 by January 31 (or February 15 in some cases) and make it available until at least October 15 of that year.  You also must inform the recipient of the electronic 1099 and instruct him or her how to access and print the 1099.

How to File IRS 1099 Using Paper Forms

Unless you are filing your 1099s electronically, you will need to know about the special requirements for filing 1099s on paper.  There are very specific specs on the size, etc of paper used to submit 1099s to the IRS.  This is because they will be scanned and must conform to scanner specs for proper scanning.

1099 forms must be printed on an 8 x 11 inch sheet, either 2 or 3 to a sheet.  They cannot be folded, stapled, torn, or taped or they will not scan properly.  No printer holes, either, and no photocopies.  You can print your own 1099s for the recipient copies, but for Copy A, which goes to the IRS, you must order the form to be used.  You can order the 1099 online or send an order for the form through the mail.

The other important requirement for filing your 1099s on paper forms is IRS form 1096.  This is a transmittal form and must accompany each type of form 1099 you are submitting.

File IRS 1099 Electronically

Some IRS Form 1099 filers must file electronically.  The IRS requires electronic submission of 1099s when there more than 250 forms to be filed.  This requirement applies to each individual form.

There is a way out of the requirement if you have trouble filing electronically.  It’s called the Hardship Waiver.  It’s called IRS form 8508, Request for Waiver From Filing Information Returns Electronically.  You must submit IRS form 8208 at least 45 days before the due date of the return.  Also, you have to apply each year you want exemption from having to file electronically.

To file electronically, you must apply first.  Use IRS Form 4419, Application for Filing Information Electronically.  It must be submitted at least 30 days before the due date of the returns.   Like the Hardship Waiver, you must reapply every tax year.  Once you are approved, the IRS will send you information on how to file the 1099 electronically.


IRS 1099 Due Date

For the IRS 1099 there are two due dates to be concerned about: the due date to the IRS and the due date to the recipient.  In general, the IRS 1099 due date to the IRS is February 28.  The due date to the recipient is January 31 in most  cases.

There are exceptions to this general rule, depending on the type of 1099 being issued.  There are several types of 1099s, covering all sorts of non-wage income.

IRS form 1099-B, PRoceeds From Broker and Barter Exchange Transactions, has a different IRS due date for the Recipient: February 15.

Same goes for IRS form 1099-S, Proceeds from Real Estate Transactions.

Due Date for the Recipient for 1099-MISC for Gross Proceeds paid to attorneys and Substitute dividends and tax-exempt interest payments reportable by brokers are also February 15 rather than January 31 like the rest of the IRS 1099s.

What is IRS form 1099?

Independent Contractors Must Show Their Earnings From IRS 1099s

The IRS 1099 is used to report income that’s not covered on a W-2.  There are several different types of IRS 1099s but the most common are the 1099-MISC and the 1099-INT. Anyone who works as an independent contractor should know about IRS 1099 forms.  Also, anyone who receives interest income should know about them as well.

If you work as an independent contractor and make more than $600 from a client then that client will have to issue you a 1099.  A copy will go to you and a copy will go to the IRS.  When you do your taxes you will have to use your 1099 to report those earnings and pay taxes on them.

If you receive a 1099 in the mail, don’t lose it!  You’ll need it when you do taxes.  If you lose your IRS 1099 and forget to include in in your taxes then you will essentially be failing to pay your taxes on that income and could get penalties or fees.