Important backup withholding deadlines


FS-2024-01, January 2024

Some businesses and other payers withhold money from payments they make to certain people to satisfy backup withholding. These entities should remember their upcoming filing deadlines.

What is backup withholding?

There are situations when a business and other payers must withhold 24% of a payment to ensure the IRS receives the tax due on this income. This is known as backup withholding. Payers that withheld money for backup withholding must deposit the withholding with the IRS. Business and other payers generally don't withhold taxes from payments reported on Forms 1099 and W-2G.

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Backup withholding annual return filing due date for tax year 2023

Payers must report their liability for backup withholding and any other federal income tax withheld from nonpayroll payments on Form 945, Annual Return of Withheld Federal Income Tax. The last day for filing Form 945 for tax year 2023 is Jan. 31, 2024. However, if the payer made deposits on time and in full, the last day for filing is Feb. 12, 2024.

For filing details, see the Instructions for Form 945.

For information on making federal tax deposits, see section 11 of Publication 15.

Information returns to report backup withholding

Use these information returns to report backup withholding to the IRS and payees for tax year 2023:

  • Form 1099-B, Proceeds from Broker and Barter Exchange Transactions
  • Form 1099-DIV, Dividends and Distributions
  • Form 1099-G, Certain Government Payments
  • Form 1099-INT, Interest Income
  • Form 1099-K, Payment Card and Third-Party Network Transactions
  • Form 1099-MISC, Miscellaneous Information
  • Form 1099-NEC, Nonemployee Compensation
  • Form 1099-OID, Original Issue Discount
  • Form 1099-PATR, Taxable Distributions Received from Cooperatives
  • Form W-2G, Certain Gambling Winnings

Filing due dates for information returns

Except for Form 1099-NEC, the information returns to report backup withholding are generally due to the IRS on the following dates:

  • Paper filers: Feb. 28, 2024
  • Electronic filers: March 31, 2024
  • Form 1099-NEC: Jan. 31, 2024, for both paper and electronically filed returns.

Leap years do not affect the February 28 due date.

Due date for payers to provide information returns to payees

Payers must furnish most information returns to payees by Jan. 31, 2024. Exceptions are in the Guide to Information Returns on page 26 of the General Instructions for Certain Information Returns.

Same Employer Identification Number on all forms

Information returns and Form 945 must have the same Employer Identification Number (EIN) for filing. This is also a requirement for third parties such as accountants or agents filing on behalf of another payer. Filing returns with inconsistent EINs can result in processing delays, compliance notices and possibly the assessment of penalties.

Filing electronically

The IRS strongly encourages e-filing. If a taxpayer files 10 or more information returns as a whole, e-filing is required.

Extensions for filing information returns

Payers can request a 30-day extension to file any of the information returns to report backup withholding. To request an extension, payers can use IRIS or file Form 8809, Application for Extension of Time to File Information Returns. Extensions are usually automatic except for Form 1099-NEC.

Payers who need a 30-day extension to file Form 1099-NEC must meet one of the criteria on line seven of Form 8809. An additional 30-day extension may be available as described in the instructions to the Form 8809.