As a business owner, you are required to complete different 1099 forms and distribute them to the respective payee and federal and state authorities. Thus, you should understand the intricacies in order to file 1099 forms accurately. From new thresholds to updated deadlines, these changes can significantly impact how businesses report payments and stay compliant. This article will decode the 1099 filing requirements for tax years 2024 and 2025, and everything in between.
What’s New in 2025?
As businesses gear up for another tax season, staying informed about the latest 1099 filing requirements is more critical than ever. There are different forms, and the filing requirements provide businesses with clarity when filing 1099 forms. Let’s explore what’s going to be new in this filing season.
1099-K Threshold:
Third-party settlement organizations (TPSOs) are required to report payment transactions when the total payment amount is more than $5,000 in 2024, $2,500 in 2025, and more than $600 in calendar years 2026 and after.
New Form 1099-DA:
Information about the new Form 1099-DA, Digital Asset Proceeds from Broker Transactions, and its separate instructions has been added to these instructions, where appropriate. For more information on the Form 1099-DA.
Form 1096 Revised Version:
Form 1096 has been revised to reflect the addition of Form 1099-DA and amended Regulations section.
Due dates for certain statements:
The due date for furnishing statements to recipients for Forms 1099-B, 1099-DA, 1099-S, and 1099-MISC (if amounts are reported in boxes 8 or 10) is February 17, 2026.
Reminders for 2024 TY
Let’s reiterate the 1099 filing requirements that are valid for filing informational returns for 2024 TY.
- Starting January 1, 2024, the e-file threshold is reduced to 10 returns (aggregating all information returns) under the Taxpayer First Act of 2019.
- If backup withholding applies to a payment, you must file the appropriate Form 1099 or W-2G and provide a statement to the recipient, even if the payment amount is below the filing threshold.
- Employers can request an automatic 30-day extension by submitting Form 8809 by the returns’ due date.
Who Needs to File 1099 forms?
If you have paid a total of $600 or more in a financial year to independent contractors, freelancers, or vendors, you are required to file a 1099 with the IRS. The most common forms include 1099-NEC (nonemployee compensation) and 1099-MISC (miscellaneous income).
Filing Tips for Form 1099
If you want to file the 1099 form correctly and accurately, then keep the following things in mind:
- Collect Essential Information: Gathering the essential information is important with respect to filing 1099 forms. Whether it’s the payer’s information or the details of the payee, it’s very essential to collect them in order to file an accurate 1099 form.
- Enter the Information Correctly: 1099 forms, such as 1099-MISC or 1099-NEC, must be filled out correctly, and all the information should be accurate and authentic.
- Send the Concerned Authority: You have to be aware of which copies to send to the concerned persons, such as non-employees or the IRS.
- Keep Records: Business owners should keep all the copies of 1099 forms for future use. Additionally, these copies are required to fulfill the tax audits.
- Remember the Deadlines: Every taxpayer must remember the 1099 form due dates to avoid the penalties or the fine.
Key Deadlines for 1099 Forms
A 1099 form will typically have five copies, each serving a specific purpose:
- Copy A of Form 1099 is sent to the IRS by the filer.
- Copy 1 is sent to the state tax department, but only if required by the specific state.
- Copy B is provided to the recipient for their records and tax filing purposes.
- Copy 2 is also given to the recipient, to be filed with their state income tax return (if applicable).
- Copy C is retained by the filer (the business or employer) for their records.
Thinking about the 1099 filing deadlines?
Here’s a table showcasing the major 1099 forms and their deadlines:
| Tax Forms | Recipient Deadline | Paper Filing Deadline | E-file Deadline |
| 1099 NEC | Friday – January 31, 2025 | Friday – January 31, 2025 | Friday – January 31, 2025 |
| 1099 MISC (No Data in Box 8 or 10) |
Friday – January 31, 2025 | Friday – Feb 28, 2025 | Monday – March 31, 2025 |
| 1099 MISC (With Data in Box 8 or 10) |
Monday – February 17, 2025 | Friday – Feb 28, 2025 | Monday – March 31, 2025 |
| 1099 A | Friday – January 31, 2025 | Friday – Feb 28, 2025 | Monday – March 31, 2025 |
| 1099 C | Friday – January 31, 2025 | Friday – Feb 28, 2025 | Monday – March 31, 2025 |
| 1099 DIV | Friday – January 31, 2025 | Friday – Feb 28, 2025 | Monday – March 31, 2025 |
| 1099 G | Friday – January 31, 2025 | Friday – Feb 28, 2025 | Monday – March 31, 2025 |
| 1099 INT | Friday – January 31, 2025 | Friday – Feb 28, 2025 | Monday – March 31, 2025 |
| 1099 K | Friday – January 31, 2025 | Friday – Feb 28, 2025 | Monday – March 31, 2025 |
Penalties for Late Filing
Adhering to the IRS guidelines regarding the filing of 1099 forms within the due date is mandatory to prevent yourself from facing the consequences. Let’s look at the penalties applied by the IRS to the late tax filers:
- If you have filed the 1099 forms up to 30 days late, then the fine amount is $60 per form.
- $130 per form when the filing is more than 30 days late but before August 2nd.
- When the business owner doesn’t file or does not file after August 1st, the penalty is $330 per form.
- If the taxpayers intentionally put misinformation, the penalty is highest, and it is $660 per form.
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