Home / Tax Corner — 1099 Tax Reminders

Tax Corner — 1099 Tax Reminders

January 13, 2026 | Weekly Commentary

Get organized this January to tackle your 1099 filing obligations with ease! As we close out 2025, small business owners, self-employed individuals, and rental property owners can stay compliant with the IRS by preparing early for Form 1099 requirements.

If your business or rental property paid $600 or more for services to non-employees (e.g., freelancers, contractors, or vendors not incorporated as C or S corporations), you must issue a 1099 form. For detailed instructions on Form 1099-NEC (Nonemployee Compensation) and Form 1099-MISC (Miscellaneous Income), visit the IRS website at https://www.irs.gov/instructions/i1099mec.

Key Deadlines:

  • Form 1099-NEC: Mail to recipients and file with the IRS by January 31, 2026, whether filing electronically or by paper
  • Form 1099-MISC: Mail to recipients by January 31, 2026, and file with the IRS by February 28, 2026 (paper) or March 31, 2026 (electronic)

Tips to Stay Compliant:

  • Electronic Filing Requirement: If you’re filing 10 or more information returns (e.g., 1099-NEC, 1099-MISC, etc.), you must file electronically using the IRS’s FIRE system or a third-party platform
  • Verify recipient information, like Taxpayer Identification Numbers, to avoid a $310 penalty per form for incorrect TINs
  • File on time to avoid late penalties: $60 per form (within 30 days), $130 per form (by August 1), or $340 per form (filed after August 1).

Don’t risk costly mistakes. Visit IRS.gov for forms, TIN matching, and guidance to ensure timely compliance.