In most cases, the 1099 statute of limitations is three years. The three years begin on the due date of the return or the date on which it was filed; whichever is later.
- If you file an independent contractor’s 2025 1099-NEC on time, on Jan. 31, 2026, the statute of limitations will expire on Jan. 31, 2029.
- If you file late, like on Aug. 1, 2026, the statute of limitations expires on Aug. 1, 2029.
It is important to note that a return is considered filed on the due date even if it was filed a few weeks earlier. If you file your workers’ 2025 1099-NEC forms on Jan. 1, 2026, the statute of limitations will still expire on Jan. 31, 2029.
The better solution is to avoid these mistakes in the first place. Software tools from Advanced Micro Solutions’s 1099-etc software are designed to do just that.
What Does the 1099 Statute of Limitations Mean?
The three-year 1099 statute of limitations applies to most forms issued and collected by the IRS. The period is separate from the statute of limitations period that is designated for collecting your taxes, which can happen if the IRS files suit against the taxpayer to collect.
The statute of limitations timeline for collecting your taxes is generally 10 years.
The 1099 statute of limitations can be complicated. The IRS statute of limitations on actions for back taxes relies heavily on whether a tax return was ever filed in the first place. The question then becomes whether the return in question was accurate.
If you are worried that you forgot to file a 1099, or if you recently caught a mistake on a 1099, you typically have three years to rectify the mistake but may differ depending on the form.
Avoid Mistakes with a 1099 Software Tool
The 1099 statute of limitations is important to those who either incorrectly file 1099s or neglect to file altogether. If you are in either of these situations, we understand your position. Running a small business can be tough, and mistakes are bound to happen. If you are looking for a way to lighten your burden, consider a 1099 software tool like the option that we offer users.
Our W-2/1099 Forms Filer will not do all of the work for you, but it will help mitigate a significant burden. Here are just a few features of the helpful software solution.
- A Common Payee File allows the user to select a payee across payers or 1099 forms without having to type in the same information multiple times
- Entering information is easy, and the entry screen resembles actual forms
- Data is automatically saved through the software when a new record or form is accessed
- Users can print Tables and Worksheet Reports, along with client letters, recipient lists, and mailing labels
- The Table Report generates hash totals of SSNs and TINs to check data entry accuracy
Our W-2/1099 Forms Filer seamlessly integrates with AMS Payroll. The add-on module is one of our other popular tools. If you decide to use AMS Payroll for all your payroll-related tax and wage needs, you will not need to worry as much about incorrect data.
The software calculates local, state, and federal taxes for users. All you need to do is integrate the data on 1099 forms, and you are done. Download our free 1099-etc Demo software to see how the programs interact with each other and get started.
People Also Ask:
What if I notice a 1099 error for a deceased independent contractor? – Employers still need to file a 1099 form or correct an error on one for a deceased individual who died during the year. An estate administrator, an executor, or a personal representative for the deceased individual may request information from the IRS.