Filing 1099 forms — especially 1099-NEC, 1099-MISC, and 1099-INT — may seem simple, but even minor mistakes can lead to IRS penalties, delays, or audits. Whether you’re a small business owner, accountant, or freelancer, understanding the most common pitfalls can save you time, money, and stress.
In this blog, we break down the most frequent 1099 errors, explain how they happen, and how to avoid them.
- Mixing Up 1099-NEC, 1099-MISC, and 1099-INT
One of the biggest filing issues is choosing the wrong form:
1099-NEC: Used for payments of $600+ to independent contractors or non-employees.
1099-MISC: Used for rent, prizes, legal settlements, and other miscellaneous payments.
1099-INT: Used to report $10+ in interest income, often from banks or financial institutions.
Avoid it: Always double-check IRS guidelines or use trusted e-filing software that prompts you based on payment type.
- Filing Late or Missing the Deadline
Each 1099 form has a strict filing deadline. For example:
1099-NEC must be filed with the IRS and provided to the recipient by January 31.
1099-MISC and 1099-INT are usually due by February 28 (paper) or March 31 (electronic).
Avoid it: Use calendar reminders or choose an e-file service that alerts you of deadlines ahead of time.
- Incorrect or Missing TINs (Taxpayer Identification Numbers)
Filing with an incorrect or missing TIN (e.g., SSN or EIN) is one of the most common and costly mistakes.
Avoid it: Always collect a Form W-9 from your payees and verify the information before submitting.
- Using the Wrong Dollar Amounts or Leaving Boxes Blank
Misreporting dollar amounts or skipping boxes can lead to IRS flagging or delay in processing.
Avoid it: Match your records exactly to what’s been paid. Automated software often prevents this by validating entries in real time.
- Filing for Exempt or Ineligible Payments
Not every payment qualifies for a 1099 form. For instance, payments to corporations are often exempt (with some exceptions), and employee wages should be reported on Form W-2, not a 1099.
Avoid it: Know what qualifies and what doesn’t. When in doubt, check with a tax professional.
- Not Filing Electronically (When Required)
If you’re filing 250 or more 1099s, the IRS requires e-filing. Even smaller businesses benefit from e-filing to avoid paperwork and mailing errors.
Avoid it: Use an IRS-authorized e-file provider to simplify the process.
- Forgetting to File with State Agencies
Some states require separate 1099 filings — and not doing so can result in penalties.
Avoid it: Check if your state participates in the Combined Federal/State Filing (CF/SF) program or has its own requirements.
- Ignoring the “FATCA Filing Requirement” Checkbox
Box 11 on certain 1099 forms (especially 1099-MISC) includes a FATCA checkbox. If left blank incorrectly, it could trigger compliance issues for foreign reporting.
Avoid it: Only check this box if it’s applicable to your filing situation.
Conclusion: Avoid Mistakes Before They Cost You
Avoiding common 1099 filing mistakes is easier when you:
Understand which form to use
Collect accurate data upfront
File on time and electronically
Use trusted tools for e-filing
Need help e-filing your 1099-NEC, MISC, or INT forms correctly and quickly?
👉 Visit efilemy1099.com
to get started today. Fast, secure, and IRS-approved.
