What Happens if You Don’t File a 2019 1099 Form?

In many cases, the answer is simple: You’ll receive a fine. Each year, the IRS matches 1099 forms with tax returns. If a business does not report a 1099, the organization will pursue the individual for taxes owed – even if that individual never received a 1099 from the payer. As a result, much of the onus is placed on the individual contractor to report their earnings to the IRS. However, a business can also incur a penalty for failing to report and distribute 1099 forms.

Here’s where the rules differ for businesses. These organizations can often operate within a 3-year statute of limitations for 1099 forms. So, for the 2019 1099 form, the IRS can levy fees up until January 31, 2023. It may take longer for the IRS to notice that a business did not file a 2019 form 1099, as the organization will likely use the contractor’s tax return to discover whether the payer failed to report a 1099 form. So, while you may still have not received a fee for a 2019 1099 form, the IRS still has more than two years to fine your business. We recommend remedying the situation as soon as possible.


Do I Need to File a 2019 1099 Form?

Even if the deadline for this 1099 form has come and gone, yes, you do need to file one. However, payers should check to see whether they needed to file one in the first place. 1099 forms are distributed if the payment to a contractor exceeds $600 in a given calendar year. Check with your payroll software to see just how much your company spent on a contractor.


Keep Your Numbers and Data Organized with AMS

Business owners and accountants are often stretched to the limit. This means that a form or two is likely to slip through the cracks every year – especially if you’re still doing accounting manually. The best way to remedy a lapsed form filing is to prevent it from happening in the first place. Advanced Micro Solutions can help with just that.

If you’re having trouble keeping your 2019 1099 form and W-2 forms organized and updated, we recommend trying our base program, the W-2 and 1099 Forms Filer. This software tool allows users to record essential employment information, payment documentation, and file essential forms right from the software. We can’t promise you won’t forget another form in the future, but a software tool will keep all your information in one place. This will allow you to better notice when something is missing.



Looking for an even more expanded semi-automated accounting set-up? We recommend combining our base platform with AMS Payroll . When paired, these software tools allow users to automatically calculate state, local, and federal taxes, generate paychecks, and record payment for later bookkeeping and tax reporting. When business owners use AMS Payroll to calculate and record payments to independent contractors, that information will be stored within the software. When it comes time to report 1099 forms, all the relevant data – name, taxpayer or business ID, and the payment made – will be readily available.


Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.