Year-End 1099 Prep for Property Management Vendors

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expense management for property management companies with a large number of vendors. By following the guidelines outlined in this section, you can accurately classify and report your vendors and meet the necessary deadlines. For a complete overview, see our expense management guide.

Incurdesk expense report "Vendor Classification Report" with columns Vendor Name, Classification, Deadline, listing Dr. Patel, Maria, Office Manager, ABC Landscaping — Vendors and Forms Classification (sample data)

State-Specific 1099 Filing Obligations and Deadlines

Some states require property management businesses to file 1099 forms directly with their Department of Revenue, while others participate in the Combined Federal/State Filing Program (CF/SF). This program allows the IRS to forward 1099 data to participating states.

States that participate in the CF/SF program include:
States that require direct filing with the state's Department of Revenue include:
States with no 1099 filing obligation include:

Businesses should check with their state's Department of Revenue to determine their specific filing obligations and deadlines. Filing deadlines vary by state, but generally fall in January or February of each year.

For example, California requires direct filing with the Franchise Tax Board by January 31st. In contrast, Florida participates in the CF/SF program, and does not require direct filing with the state.

Businesses should also note that some states have specific requirements for 1099 forms, such as additional information or specific formatting. Check with the state's Department of Revenue for specific requirements.

Incurdesk dashboard "State 1099 Filing Requirements" showing Participating States (CF/SF Program): 30, Direct Filing States: 20, No Filing Obligation States: 10 — State-Specific Filing Obligations and Deadlines (sample data)

1099-NEC and 1099-MISC Reporting Thresholds

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Total Annual Payments

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Penalties and Filing Options for 1099 Forms

Non-filing or incorrect filing of 1099 forms can result in penalties ranging from $60 to $680 per form, depending on the lateness and intent.

Late Filing Penalty:
Incorrect Information Penalty: $60 per form.
Intentional Disregard Penalty: $680 per form.

The Internal Revenue Service (IRS) offers the following filing options for 1099 forms:

Mail: Send completed forms to the IRS at the address listed on the form.
Electronic Filing: Use the IRS's Integrated Data Retrieval System (IRIS) to e-file 1099 forms. IRIS is the replacement for the FIRE system, which is no longer available for the 2026 tax year returns filed in early 2027.

For more information on penalties and filing options, visit the IRS website or consult the IRS instructions for 1099 forms.

Incurdesk checklist "Year-End 1099 Prep for Property Management Vendors": 0 of 7 steps done, including Non-filing or incorrect filing of 1099 forms can result in penalties,... — Penalties and Filing Options for Forms Checklist (sample data)

Keeping this simple: Incurdesk turns submitted expenses into clean expense reports. It is built for small property management teams. Try it free.

Frequently Asked Questions

Do I need to issue a 1099 to my property manager if they are an incorporated company?

As a general rule, you do not need to issue a 1099 to an incorporated property manager. However, if you are paying them more than $600 in a calendar year, you may need to file Form 1099-MISC and obtain a W-9 from them. Check the corporation's tax status and consult with a tax professional if you're unsure.

If a vendor is paid by multiple property owners managed by my company, how do I handle the 1099?

For vendors paid by multiple property owners, issue one consolidated 1099-MISC to the vendor, reporting the total amount paid by all property owners. Make sure to include the name and address of the vendor, as well as the amount paid and the payment dates. This will simplify the process for both you and the vendor.

What happens if I discover an error on a 1099 after it has been filed?

You will also need to provide a corrected copy to the affected vendor and the IRS. Make sure to keep accurate records and notify the vendor promptly if an error is discovered.

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