Year-End Checklist 1099 Filings

The holidays can be a busy time for your accounting team, as they focus on meeting tight year-end tax filing deadlines. Additionally, this year the IRS has changed the process for 1099 filing by adding new forms and altering filing requirements. These new requirements can make an already stressful period for your team even more chaotic.

To help you properly wrap up 2020 and kick off 2021 with less stress, Armanino’s outsourced accounting experts have created this quick year-end checklist.

1099 form additions and changes. Prepare and examine each of the following:

1099-NEC – 1099-MISC Box 7 has been replaced by the 1099-NEC and is due to the IRS on Feb. 1, 2021.
- 1099-MISC – This form is largely the same but is missing nonemployee compensation. It’s due to the IRS on Mar. 31, 2021.
- Filing deadlines. All your 1099 forms, excluding the 1099-NEC, are due to the recipients by Feb.1, 2021, and to the IRS by Mar. 31, 2021.
Filing methods. Section 6011(e)(2)(A) of the Internal Revenue Code requires organizations that file more than 250 form 1099s to do so electronically. If you have fewer than 250, you may file them by mail. Form 1099s that are filed by mail must include a 1096 form, which is a summary of all your 1099s. If you e-file your 1099s, you do not need to file a 1096 form.
1042 filing requirements. You must paper file and manually mail your 1042 form. However, you can e-file your 1042-S form (which includes the 1042-T form), which must be delivered to the recipient by Mar. 15, 2021. If you outsource your 1099 filings, you must consult with your vendor about them filing your 1042 forms as well.