Is this true? Beginning with tax year 2016, Forms 1099-MISC with payments in Box 7 are due to the IRS on the same timing as recipient statements on January 31...


Q. (cont.) You won't have February and March and possibly April to clean up your data before reporting to the IRS; hence, the expectation that 2017 will see a sharp increase in B-Notices. Making this matter truly ugly are the following:

  • Penalties for incorrect filings have increased.
  • Beginning with tax year 2016, extensions of time to file will no longer be automatic. Payors must show reasonable cause, if they expect to be granted one.

Forms I file:

  • 10999M
  • 1099R

 In the past I filed the extension through FIRE system, so I didn’t file with the IRS until April.  Is the extension still available?  With or without reasonable cause?  My preference would be not to file immediately in case the payer would call in to report we made a mistake and the amount needs to be changed. 

 Also, what about 1099Rs?  Can I file those later or with an extension? 

 A. Yes, it is true. On the Network please see the article Update: The Consolidated Appropriations Act and New Dates for 1099 Filing.

Regarding extensions, the IRS has proposed a change in the automatic extension to file 1099s, but if passed, will not apply until the 2017 tax year reported in 2018. Extensions would require a sufficiently worthy reason; we do not think that the reason you give in your question will be considered sufficient.

As for the new filing deadline for the 2016 tax year reported in 2017, that is now the law, but it applies to box 7 reporting on the 1099-MISC. It does not apply to 1099-R.

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