Information Return Filing Requirements – What to Know and When to File

An information return is a mandatory form used to notify government agencies and taxpayers about taxable payments. These forms show how much an individual or business was paid during the calendar year. Individuals and businesses engaged in a trade or business must declare certain types of payments made to a recipient on an information return, report these transactions to the IRS, and provide a copy to the recipient. Individuals and businesses then use the information reported to correctly file their tax returns.

 

New E-File Threshold for Information Returns

 

IRS regulations lowered the e-file threshold for information returns from 250 returns down to 10 returns for calendar year 2023. In other words, beginning on January 1, 2024, if 10 or more forms (in total) are to be filed for 2023, the forms will need to be submitted electronically to the IRS. Paper filed forms will result in penalties imposed by the IRS.

 

To help with this process, the IRS has created a free, online portal to electronically file any Forms 1099 for the 2023 tax year.

 

Due dates and other additional forms and information pertaining to information returns are located in IRS Publication 1220.

 

Examples of Information Return Required Reporting

 

The most common types of payments requiring an information return filing include payments for services performed by someone who is not a company employee, payments to attorneys, rents, royalties, and distribution and interest payments.

 

The IRS requires an information return to be filed when the total of payments to individuals and businesses, within a calendar year, meet or exceed the minimum amounts. Any paid amounts under the minimum do not have a filing requirement. Listed below are some of the more common types of forms used to report payments and income received throughout the tax year.

 

  • Wage and Tax Statement (Form W-2): $600 or more
  • Non-employee Compensation (1099-NEC): $600 or more
  • Miscellaneous Information (1099-MISC): $600 or more, $10 or more for royalties
  • Interest Income (1099-INT): $10 or more
  • Dividend Income (Form-DIV): $10 or more
  • Acquisition or Abandonment of Secured Property (1099-A): all amounts
  • Cancellation of Debt (1099-C): $600 or more
  • Proceeds from Real Estate Transactions (1099-S): generally, $600 or more

 

When to File Information Returns

 

The due dates for filing information returns with the IRS and sending the forms to recipients vary by information return type, as well as the filing method used. Following is a summary of the due dates for the most common information returns.

 

Form 1099-NEC:

  • To Recipient and IRS by January 31

Most other Information Returns:

  • To Recipient by January 31
  • To IRS (paper filed) by February 28
  • To IRS (electronic) by March 31

A 30-day extension to file Forms 1099 and 1098 may be requested by completing and filing a Form 8809, Application for Extension of Time to File Information Returns to the IRS. It is important to note, however, that Form 1099-NEC must meet one of the five criteria outlined on Form 8809 in order to qualify for a 30-day extension.

 

For additional details regarding Information Return filings and extensions, review the 2023 General Instructions for Certain Information Returns on the IRS website.

 

Author, Noelia Gomez Osorio

Tax Supervising Senior

Spiegel Accountancy

 

 

 


Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.