Generally, a business must issue a Form 1099-NEC to any individual, partnership or LLC (not taxed as a corporation) that it paid for services during the year, once total payments reach the reporting threshold. Payments to most corporations are not reported, although there are exceptions, such as payments to attorneys. We will review your vendor list with you.

For payments made in 2026, the reporting threshold for Forms 1099-NEC and 1099-MISC increased from $600 to $2,000. This applies to the 1099s filed in early 2027. Backup withholding rules still apply, so it is still important to collect a W-9 from every contractor.

TIN matching lets an authorized filer check that a vendor’s name and taxpayer ID number match IRS records before the 1099 is filed. Catching errors early helps you avoid B-notices, backup withholding requirements and penalties for incorrect information returns.

If your business files 10 or more information returns in total during the year, including Forms W-2 and 1099, they must be filed electronically. We file electronically for all of our clients.

Act quickly, as penalties and interest keep growing and unpaid payroll taxes are taken very seriously by the IRS. We will identify every missing quarter, prepare the returns for you to sign and file, and help you set up a routine so it does not happen again.

A list of the contractors and vendors you paid during the year, the amounts paid, how you paid them and a W-9 for each one. Monthly bookkeeping clients already have most of this in their books. Ask about adding 1099 filing to your monthly bookkeeping package.