Your 1099s May Be Tardy This Year

Some of your 1099s may be delayed this year because recent changes in the tax law require them to be corrected. They’re supposed to be mailed out by Jan 31 but this year they may not even show up until after the April 18th filing deadline. So what do you do?

1099s are mailed to investors to provide a report of their income. Typically you’ll receive either a 1099-DIV or a 1099-B.

Publishing pal Consumer Reports says you can either just wait and hope they show up in time, or request an automatic 6-month filing extension by filing form 4868 (PDF). This doesn’t extend the paying deadline, however. You will still need to estimate your tax liability and send in your payment on time.

And if you get 1099s after you file, you can wait for the IRS to pick it up and send you a bill or a refund. But if the difference is large, you’re better off filing an amended return using form 1040x (PDF), and make sure to pay any new tax you now owe ASAP to avoid fines and penalties racking up.

IRS Form 1099s may be late this year. Here’s what to do. [Consumer Reports Money Blog]


Edit Your Comment

  1. Cheap Sniveler: Sponsored by JustAnswer.comâ„¢ says:

    rable mrooeaaar guvamint mrrrrr….

  2. backbroken says:

    I make my 1099s at home.

    • Xenotype51 says:

      This is actually possible if you know what the amounts are. You just need to have the required fields. This is also true for W2s. It should be noted that this also increases your chances of being audited.

  3. Necoras says:

    I think I made all of $20 in interest and dividends last year, so I’m not really worried.

  4. catastrophegirl chooses not to fly says:

    and don’t forget, if the government OWES you money, you have 3 years to file and you don’t need to request an extension. they aren’t in any hurry to hear from you about refunds

    • haggis for the soul says:

      Isn’t it 2 years? You usually get a nasty gram from them once two years have gone by.

      • EarthAngel says:

        Actually, the returns are due by April of the following year, unless you file an extension. The statute of limitations expire after three years…but you are still expected to file your returns before the 3 years is up.

        If you don’t file, the IRS can do a substitute for return for you calculating at single / married filing separately. Trust me, it is a headache to undo. Even if you’re supposed to get a refund because your filing status was joint, they’ll file it separately.

  5. Johnmcboston says:

    “We screwed up – now you can fill in more paperwork to make up for it”. Love that Government…

  6. PadThai says:

    Huh? No seriously, I don’t understand any of it. But whatever.

    • The cake is a lie! says:

      If you are a 1099 employee it means you are most likely a ‘consultant’. Half my income last year was 1099, but it came from one company, so it should be easier for them to handle. They have to tell you how much income they reported to the IRS. They still have to pay payroll taxes and all that as well as accounting for what they are spending money on. Spending money on a consultant is different than spending it on printers or office supplies, so what they account for paying you is an important number. I usually just go off what my deposits say in Microsoft Money, but companies sometimes screw up and include your expense reports in the 1099 as part of your salary, and that sucks. Last year my employer did that and tacked 45,000 dollars onto my 1099 as income that I didn’t actually make. It was because I was the purchasing agent for their system hardware and ran all the charges through my AMEX and expensed it. I got a shit load of skymiles for it, so that made me happy, but it wasn’t something I wanted reported as income so I had to pay taxes on money I didn’t earn.

      Anyway, this is a pain if you don’t know how much a company paid you or if you don’t have the employer id number which is shown on the W2 or 1099. There is only so far you can go without all the information. In the immortal words of Inigo Montoya, “I hate waiting…”

  7. Ihaveasmartpuppy says:

    Great, we have to file a FAFSA by March 1, and that uses data from our tax return. The whole thing is just a big dumb hassle.

  8. Muddie says:

    No, really, this tax law is fine. It doesn’t need overhauling. Makes total sense to everyone and doesn’t screw over anyone at all or inconvenience citizens in the slightest.

    I shouldn’t have to be an accountant or have to have an accountant to simply pay taxes.

  9. Loias supports harsher punishments against corporations says:

    This is pretty much crap. The IRS should waive any interest accrued due to late payments because of 1099s ONLY. I shouldn’t be punished for logistical problems I have no control over.

    Or, the agency sending me my 1099s should be required to pay my interest.

    • kenj0418 says:

      Why? You are the one who had the extra money you hadn’t sent the IRS sitting in your account. (Any penalties on the other hand…)

      Just keep track of what income you received and it doesn’t matter who sends you a 1099 when, you’ll already have all the info before you get the 1099.

      • Loias supports harsher punishments against corporations says:

        But you’re estimating, which is not accurate. Without solid numbers you run the risk of under-paying.

        Again, completely not the fault of the taxpayer, and yet they are the one taking the responsibility and punishment.

  10. MEoip says:

    How can a legitimate system penalize me for being late due to their error?

    • Loias supports harsher punishments against corporations says:

      Exactly, and why should businesses be allowed to skirt their deadlines to send out required documents but I am not allowed to skirt the deadlines directly effected by the first?

  11. beretta3000 says:

    Man…there goes my plans.

    Step 1: Engrave iPod
    Step 2: Get iPod stolen
    Step 3: Have police recover iPod
    Step 4: When getting it from the police, tell them “It’s the one that says Bad Mother F*cker”
    Step 5: Hilarity

    *sigh* onto to more boring things, I guess…

  12. says:

    This is why I am more than happy to pay my accountant to deal with this stuff.

  13. SideshowCrono says:

    For most taxpayers, you can just look at your December brokerage statement for a pretty accurate picture of what your 1099 will be from that institution. Just off the top of my head there may be issues with PTP distributions being labeled dividends, some allocation issues between ordinary & qualified dividends for some entities and some minor timing discrepancies.

    Plus if you invest in “Publicly Traded Partnerships” (PTPs), you probably won’t be getting your K-1 anyways until the after the deadline. It’s just how it goes when you are involved in pass throughs (basically entities that have to do their taxes before you can due yours).

    If you have complicated investments its not unusual to receive amended 1099s and K-1s well after the April deadline. It’s just how things work in the real world. Changes ripple through the system slowly.

  14. dolemite says:

    Trying to remember my 1099s from the past…Iv’e got money in Roth IRA and my 401K from work, but with no disbursements…I think I don’t need anything.

  15. Bodger says:

    So, there is a legal requirement that 1099s be issued by a given date but if the issuer doesn’t do what they are required to do, WE can be penalized for not filing our taxes on time. So who is going to take care of penalizing the issuers? Surely they must owe a fine or something for each document that they don’t issue in a timely fashion?

    • SideshowCrono says:

      Of course there are penalties if companies do not issue 1099s. The penalties are complicated but, in the most exteme cases, its $50 per information return if filed after August 1 (up to a max of like $250,000). There are also exceptions for reasonable cause as it might be an underlying investment you own that screwed up its own reporting (maybe in terms of a breakdown between dividends / returns of capital, who knows) and in those cases oddly enough its YOU (in a weird way as you are owner of said asset) that is tripping up the broker and not the other way around.

      However, 1099s can be amended for numerous reasons and many of them are no fault of the issuer of your 1099. And not having a 1099 is no excuse for not being able to ballpark your taxes due. It’s not all that complicated at the end of the day.

  16. jedifarfy says:

    Don’t have my 1099 on time? Tough. I filed already. If the government sends me a letter, foaming at the mouth, I’ll file a revised one. I made probably $10 anyways. Your inability to get your stuff together and send tax documents in a timely manner isn’t my problem. So there. :D

  17. yagisencho says:

    Are you $h1tting me?!? This is the third year in a row that those m_therf_ckers get a pass and delay my tax filing by a month or two. Gnaaaaaauggh!!!