By what date must Form 1099 be distributed to contractors?

Form 1099 must be distributed to contractors by January 31st. This deadline ensures that contractors receive their forms early enough to report their income accurately when filing their taxes. The requirement for sending Form 1099-NEC, which is the form specifically used to report non-employee compensation, mandates that it be provided to the contractors by this date.

While the other dates listed may seem plausible for various filing deadlines related to tax documents, they do not apply to the distribution of Form 1099 to contractors. Such deadlines serve distinct purposes; for instance, February 28th is the deadline for filing paper forms with the IRS, or March 31st for electronic filing. However, for the actual distribution to contractors, January 31st is the definitive deadline. Proper adherence to this timeline is critical for compliance with tax obligations and to avoid potential penalties.