2025 IRS 1099 Filing Requirements

Your Complete Client Guide to Compliance

1099 Filing Season • 2025 Tax Year

2025 IRS 1099 Filing Requirements: A Client Guide

A clear, practical overview of who must receive a 1099, what payments are reportable, key 2025 deadlines, and the new digital asset reporting rules.

Use this guide as a checklist to avoid penalties and make sure your 1099 filings are complete and filed on time.

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1. What Are 1099 Forms?

1099 forms are information returns used to report various types of payments made in the course of your trade or business to the IRS and to recipients (such as independent contractors, attorneys, landlords, and others).

The IRS uses these forms to match income reported by recipients on their tax returns and to ensure income is being properly reported.

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2. Who Must File 1099s?

Business Use Only

You must file 1099 forms if, in the course of your trade or business, you make certain types of payments to:

  • Individuals
  • Partnerships
  • LLCs (in many cases)
  • In some situations, corporations

Nonprofits, trusts, estates, and government agencies may also have to file. Personal payments (not related to your business) are not reportable.

Form Types & Reportable Payments
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3. Common 1099 Forms and What They Report

  • 1099-NEC: Nonemployee compensation (independent contractors, freelancers, attorney fees).
  • 1099-MISC: Rents, prizes and awards, medical and health care payments, gross proceeds paid to attorneys, and other miscellaneous income.
  • 1099-INT: Interest income.
  • 1099-DIV: Dividends and distributions.
  • 1099-K: Payment card and third-party network transactions (PayPal, Venmo, credit card processors).
  • 1099-DA: Digital asset proceeds from broker transactions (new for 2025).
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4. What Payments Are Reportable?

1099-NEC: Report generally when you pay $600 or more in a year to a nonemployee for services (including parts and materials), including payments to attorneys and certain corporations.

1099-MISC: Report when you pay:

  • $600 or more in rents, prizes, awards, medical payments, and other income.
  • $10 or more in royalties.
  • Gross proceeds to attorneys and certain other specific payments.

1099-K: For 2025, payment settlement entities (like PayPal, Venmo, credit card processors) must generally report transactions totaling more than $2,500. This threshold is scheduled to drop to $600 in 2026.

1099-DA: For 2025, brokers must report digital asset sales and exchanges.

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5. Who Gets a 1099?

You may need to issue 1099s to:

  • Individuals
  • Partnerships
  • Most LLCs (unless taxed as a C or S corporation)

Some payments to corporations are still reportable, including:

  • Attorney fees and gross proceeds to attorneys
  • Medical and health care payments

Recipients should provide you with a valid Taxpayer Identification Number (TIN), usually via Form W-9, before you pay them.

Key Deadlines
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6. 2025 Filing Deadlines (For 2025 Payments)

January 31, 2026

• File and furnish Form 1099-NEC to the IRS and recipients.

February 17, 2026

• Furnish Forms 1099-B, 1099-DA, 1099-S, and 1099-MISC (if reporting in boxes 8 or 10) to recipients.

February 28, 2026

• File paper Forms 1099-MISC, 1099-INT, 1099-DIV, 1099-K, and most other 1099s with the IRS.

March 31, 2026

• File electronic Forms 1099-MISC, 1099-INT, 1099-DIV, 1099-K, and most other 1099s with the IRS.

Tip: Put these dates on your calendar now and start gathering W-9s and payment reports well before year-end.
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7. Electronic Filing Requirements

If you are required to file 10 or more information returns (aggregated across all types, not just 1099s), you must file electronically.

  • Use the IRS Information Returns Intake System (IRIS) or the FIRE system (depending on the form).
  • Form 1099-DA must be filed electronically through IRIS.
  • You may apply for a waiver from e-filing using Form 8508 if you meet hardship criteria.
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8. How to File

Electronic Filing:

  • Use IRIS (free IRS portal) or approved software/service providers.
  • IRIS allows you to key in data, upload CSV files, and download recipient copies.

Paper Filing:

  • Allowed only if you file fewer than 10 information returns.
  • Use official IRS forms (not downloaded copies for Copy A).
  • Mail with Form 1096 to the correct IRS address.
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9. Statements to Recipients

You must provide a copy of the 1099 to each recipient by the applicable deadline.

  • You may furnish statements electronically if the recipient consents.
  • You may truncate the recipient’s TIN on their copy (for example, XXX-XX-1234).
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10. Corrections

If you discover an error after filing, you must file a corrected return as soon as possible.

  • For paper corrections, follow the two-step process in the IRS General Instructions for Certain Information Returns.
  • For electronic corrections, use the same system (IRIS or FIRE) that you used for the original filing.
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11. Backup Withholding, Penalties, and State Filing

Backup Withholding:

  • If a payee fails to provide a TIN or provides an incorrect TIN, you may be required to withhold 24% from certain payments and report this on the 1099.

Penalties:

  • Penalties may apply for late filing, failure to file, incorrect information, or failure to provide recipient statements.
  • The penalty is generally around $340 per return for 2025, and can be higher in cases of intentional disregard.

State Filing:

  • Many states participate in the Combined Federal/State Filing (CF/SF) program.
  • Always confirm your specific state’s requirements.
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12. Practical Tips for Business Owners

  • Collect a completed Form W-9 from all vendors and contractors before making payments.
  • Keep accurate records of all payments and TINs throughout the year.
  • Use the latest IRS forms and instructions for each tax year.
  • Start preparing early to avoid last-minute issues, especially if you need to file electronically.
Need help with your 1099s? We can assist with W-9 collection, 1099 preparation, e-filing, and compliance review so you can stay focused on running your business.
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13. IRS Resources

  • IRS General Instructions for Certain Information Returns
  • IRS IRIS Information Returns Intake System
  • Instructions for Forms 1099-MISC and 1099-NEC
  • IRS 1099-DA Information

This guide is for general informational purposes and does not constitute tax advice. For specific questions or complex situations, consult your tax advisor or contact the IRS.

Strategic Planning Advisors, LLC provides tax advisory, CFO, and IRS resolution services.

Information provided on this site is for educational purposes only and does not constitute formal tax, legal, or investment advice. Please consult your advisor before making financial decisions.

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