Real Estate Professional · Tampa, FL · Member since 2017 · 104 posts · 47 votes
For work done of my rental (sold 2020) I sent a 1099 NEC to the contractor. Do I have to send a 1096 referencing the 1099 NEC to IRS before I do the taxes for 2020? . The property was held and sold under personal name.
1096 is basically a cover page when sending 1099s, including 1099-NEC, to the IRS. So yes, it is required. Already late, by the way. The deadline was Jan 31st (Feb 1st this year).
By far, the easiest way to handle it is to eFile it thru one of the many online providers. They include a 1096 automatically. It costs between $0 and $5. Google "eFile 1099s."
The fact that you owned the property under your personal name is irrelevant.
Real Estate Professional · Tampa, FL · Member since 2017 · 104 posts · 47 votes
5y
@Michael Plaks Thank you for the info...I sent the 1099 NEC mid Jan but didnt know I also had to send the 1096 to IRS. How will the penalty be calculated? .Is it done by the efile service?
@Michael Plaks Thank you for the info...I sent the 1099 NEC mid Jan but didnt know I also had to send the 1096 to IRS. How will the penalty be calculated? .Is it done by the efile service?
You need to send 1099s both to the contractor and to the IRS. Sending them to the IRS requires a 1096. Regarding penalties: https://www.irs.gov/government... however you may be able to get them waived.