How To Submit a 1099 Form to the IRS

Who submits 1099 forms and when

If you paid someone $600 or more for services during the year — a contractor, freelancer, consultant, or other non-employee — you are responsible for submitting a 1099 form to the IRS, not the person who received the payment. The person who did the work does not file their own 1099; you file it on their behalf as the payer.

You submit 1099 forms by January 31 of the year following the payment year. If January 31 falls on a weekend or holiday, the important date moves to the next business day. For example, 1099s for work done in 2024 are due to the IRS by January 31, 2025.

The most common form is the 1099-NEC (nonemployee compensation), which covers independent contractors and freelancers. Other versions exist for specific situations — 1099-MISC for miscellaneous income, 1099-INT for interest, 1099-DIV for dividends — but 1099-NEC handles most contractor payments.

Key Takeaways

• You file 1099 forms with the IRS and send a copy to the contractor; the contractor does not file their own 1099.
• The important date is January 31 following the year the work was done, and missing it can result in IRS penalties.
• You need the contractor's name, address, and tax ID (Social Security number or EIN) before you can file.
• You can file on paper by mail or electronically through the IRS FIRE system, and electronic filing is faster and reduces errors.
• If you paid less than $600 total to one person during the year, you do not file a 1099 for that person, though some states have lower thresholds.

Gather the contractor's information before you file

Before you can submit a 1099, you need four pieces of information about the person or business you paid: their full legal name, their complete mailing address, their tax identification number, and the total amount you paid them during the year.

The tax identification number is either a Social Security number (SSN) for an individual or an Employer Identification Number (EIN) for a business. You should have collected this when you first hired the contractor — most businesses ask for it on a W-9 form. If you do not have it, contact the contractor and ask them to complete a W-9 or provide their tax ID directly. Do not guess or leave it blank; the IRS matches 1099s to tax returns using this number, and an incorrect one can trigger IRS notices to both you and the contractor.

Add up all payments you made to that person during the calendar year. Include cash, check, credit card, and any other form of payment. If the total is $600 or more, you must file a 1099-NEC. Some states require filing at lower thresholds — Massachusetts, Illinois, and Vermont, for example, have $600 thresholds for certain types of work, while other states may differ — so check your state's rules if you operate in multiple states.

File electronically through the IRS FIRE system

The IRS strongly prefers electronic filing and processes it faster than paper. The system is called FIRE (Filing Information Returns Electronically), and you can access it through the IRS website at irs.gov. You do not need special software; you fill out forms in your browser.

To file through FIRE, log in with your IRS online account or create one if you do not have it. You will enter each contractor's information — name, address, tax ID, and payment amount — directly into the form. The system validates the tax ID format and catches many common errors before you submit. Once you submit, you receive a confirmation number when ready.

If you have many contractors (more than a handful), consider using tax software or a payroll service that handles 1099 filing. Programs like QuickBooks, Guidepoint, and ADP can generate and file 1099s in bulk, which saves time and reduces data-entry mistakes. These services charge a fee per form filed, typically $1 to $3 per 1099.

Paper filing by mail if you cannot file electronically

If you do not have internet access or prefer to file by mail, you can submit paper 1099 forms. Order the official forms from the IRS (Form 1099-NEC and Form 1096, which is a summary cover sheet) or read them from irs.gov and print them yourself. You will need one 1099-NEC for each contractor and one 1096 to cover the batch.

Fill out each form by hand or by computer, making sure the information is legible. Include your name, address, and tax ID at the top of each form. Mail the forms to the IRS address listed in the 1099-NEC instructions — this address changes by region, so check the current year's instructions before mailing. Keep a copy for your records.

Paper filing takes longer to process than electronic filing. The IRS typically processes paper returns within 4 to 6 weeks, while electronic submissions are processed within days. If you miss the January 31 important date, penalties begin to accrue, so file as soon as you have the information ready.

Send a copy to the contractor by January 31

On the same day you file with the IRS, you must send a copy of the 1099-NEC to the contractor. This is the contractor's copy — it shows them what you reported to the IRS, so they can match it to their own tax return. Send it by mail or, if you have their written consent, by email.

The contractor needs this form to file their own tax return. If they do not receive it by January 31, they may file late or incorrectly, which can trigger IRS notices to them. Keep a record of when and how you sent it in case questions arise later.

Common mistakes to avoid when filing 1099s

The most frequent error is an incorrect or incomplete tax ID. If you transpose a digit in the contractor's SSN or EIN, the IRS cannot match the 1099 to their tax return, and both you and the contractor may receive notices. Always verify the tax ID with the contractor before filing, and if you discover an error after filing, file a corrected 1099-NEC (marked "CORRECTED" at the top) as soon as possible.

Another common mistake is misclassifying the type of income. If you paid a contractor for services, use 1099-NEC. If you paid interest on a loan, use 1099-INT. If you paid dividends or capital gains, use 1099-DIV. Using the wrong form delays processing and can confuse the contractor's tax filing.

Do not file a 1099 for a business entity that is a corporation (C-corp or S-corp). Corporations are not required to receive 1099s; you only file them for individuals and sole proprietorships, LLCs, and partnerships. If you are unsure whether the contractor is incorporated, ask them directly or check your state's business registry.

What happens if you miss the important date or do not file

If you do not file a required 1099 by January 31, the IRS can impose a penalty. The penalty amount depends on how late you file: $50 per form if filed within 30 days of the important date, $100 per form if filed more than 30 days late but before August 1, and $250 per form if filed after August 1 or not at all. These penalties can add up quickly if you have many contractors.

Beyond penalties, failing to file 1099s can trigger an IRS audit. The IRS cross-checks 1099s against tax returns filed by contractors. If a contractor reports income that does not match a 1099 you should have filed, or if you report business expenses without corresponding 1099s, the IRS may contact you to reconcile the discrepancy.

If you discover you did not file a 1099 for a past year, file it as soon as you realize the mistake. The IRS prefers late filing to no filing, and filing late reduces the penalty compared to not filing at all.

Frequently Asked Questions

Do I file a 1099 for a contractor who is a corporation?

No. Corporations (C-corps and S-corps) do not receive 1099s. You only file 1099s for individuals, sole proprietors, LLCs, and partnerships. If the contractor is incorporated, ask them for their business structure or check your state's business registry to confirm.

What if I paid a contractor less than $600 in a year?

You do not file a federal 1099-NEC if the total is under $600. However, some states have lower thresholds or different rules, so check your state's requirements. Even if you do not file a 1099, you should still keep records of the payment for your own tax records.

Can I file 1099s after January 31?

Yes, but you will owe a penalty. The penalty is $50 per form if filed within 30 days late, $100 per form if filed 31 to 180 days late, and $250 per form if filed more than 180 days late or not at all. File as soon as you can to minimize the penalty.

What if the contractor gives me the wrong tax ID?

File the 1099 with the tax ID they provided. If you later discover it is incorrect, file a corrected 1099-NEC marked "CORRECTED" with the correct information. Contact the contractor to confirm the correct tax ID before you file the correction.

Can I file 1099s electronically if I only have a few contractors?

Yes. The IRS FIRE system works for any number of forms, from one to hundreds. You do not need to meet a minimum threshold to file electronically. Electronic filing is actually easier for small batches because you avoid printing and mailing costs.