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SBSE Memo Addresses Filing Deadlines for Information Returns

OCT. 28, 2020

SBSE-04-1020-0047

DATED OCT. 28, 2020
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Citations: SBSE-04-1020-0047

Expiration Date: October 28, 2022
Affected IRM: 4.23.8

Date: October 28, 2020

MEMORANDUM FOR
SMALL BUSINESS/SELF EMPLOYED (SB/SE) EMPLOYEES AFFECTED BY EMPLOYMENT TAX POLICIES AND PROCEDURES

FROM:
Wanda R. Griffin, Director,
SB/SE Specialty Examination Policy 

SUBJECT:
Interim Guidance on Due Dates and Statute Dates for Information Returns

This memorandum issues guidance on Forms W-2 and 1099 due dates, and statute dates until IRM 4.23.8 is revised. Please ensure this information is distributed to all affected employees within your organization.

Purpose: The purpose of this interim guidance memorandum (IGM) is to provide guidance to examiners that:

1. For tax years after 2015, the filing due dates have changed for:

  • Form W-2, Wage and Tax Statement and

  • Form 1099-MISC, Miscellaneous Income, reporting payments in Box 7, Nonemployee Compensation, and

2. Starting in tax year 2020, nonemployee compensation will be reported on Form 1099-NEC, Nonemployee Compensation.

Background/Source(s) of Authority: IRC 6071 requires Forms W-2, and any returns or statements required by the Secretary reporting nonemployee compensation, to be filed and furnished to the recipient on or before January 31 of the year following the calendar year to which such returns relate. This due date applies for both paper and electronic filing.

Example: A tax year 2019 Form W-2 is due to the Social Security Administration (SSA) and the recipient on or before January 31, 2020. For purposes of completing the Form 5345-D, Examination Request — ERCS (Examination Returns Control System) Users, the statute date for the failure to file and the failure to furnish penalty on an unfiled return is 01/EE/2023.

Form 1099-MISC, with payments reported in Box 7, Nonemployee compensation, for tax years 2016 through 2019, shall be filed with the IRS and furnished to the recipient on or before January 31 of the year following the calendar year to which such returns relate. This due date applies for both paper and electronic filing.

Example: A tax year 2019 Form 1099-MISC with nonemployee compensation in Box 7 is due to the IRS and the recipient on or before January 31, 2020. For purposes of completing the Form 5345-D, the statute date for the failure to file and the failure to furnish penalty on an unfiled return is 01/EE/2023.

Form 1099-MISC, without payments reported in Box 7, Nonemployee compensation, for tax years 2016 through 2019, shall be filed with the IRS on or before the last day of February of the year following the calendar year to which such returns relate for paper returns, or March 31 if filed electronically. These returns are due to the recipient by January 31 of the year following the calendar year to which such returns relate.

Example: A tax year 2019 Form 1099-MISC without nonemployee compensation is due to the IRS on or before February 29, 2020; however, a copy of the 1099-MISC is still due to the recipient on or before January 31, 2020. For purposes of completing the Form 5345-D, the statute date for the failure to file penalty on an unfiled return is 02/EE/2023 and the failure to furnish penalty on an unfiled return is 01/EE/2023.

Form 1099-NEC, Nonemployee Compensation, available starting in tax year 2020, is due to both the IRS and the recipient on or before January 31 of the year following the calendar year to which such returns relate. This due date applies to both paper and electronic filing.

Example: A tax year 2020 Form 1099-NEC is due on or before January 31, 2021. For purposes of completing the Form 5345-D, the statute date for the failure to file and the failure to furnish penalty on an unfiled return is 01/EE/2024.

IRM 20.1.7.12.2.8, Civil Penalties Statute of Limitations, states:

(1) No statute of limitations applies to non-filed information returns and penalties may be assessed at any time. See IRC 6501(c)(3).

(2) For incorrect or late-filed information returns, the penalties generally must be assessed within 3 years after the due date of the return or the date filed, whichever is later. See IRC 6501(a). See Exhibit IRM 20.1.7-3 for due dates of most information returns.

IRM 4.23.9.13.1, Information Returns Regarding Payment of Remuneration for Services, and IRM 4.23.9.13.6, Information Return Penalty Statute of Limitations, provide additional statute guidance.

Procedural Change: IRM 4.23.8.11, Information Return Penalty Case File, paragraph (2) will be updated as follows:

(2) Use Form 5345-D, to request controls of the penalty case file on ERCS. Fill in as normal with the following exceptions:

  • Form Type: Identify if the case is “Form 1099-MISC Penalty”, “Form 1099-NEC Penalty”, or “Form W-2 Penalty”

  • MFT Code: IMF — "P9/55"; BMF — "P9/13"

  • Activity Code: 506

  • Statute date: Non-filed information returns may either be “01/EE/YYYY” or "02/EE/YYYY"

Effect on Other Documents: This guidance will be incorporated into IRM 4.23.8, Determining Employment Tax Liability, by October 28, 2022.

Effective Date: This interim guidance is effective on October 28, 2020.

Contact: Shawn Knott, Policy Analyst, SB/SE Employment Tax Policy via email at Shawn.Knott@irs.gov

Distribution:
IRS.gov (http://www.IRS.gov)

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