A Deadline That Turns Around the Corner
If your business paid freelancers or independent contractors $600 or more in 2024, you are required to file and provide 1099 forms by January 30, 2025.
What is the 1099 Form?
The 1099-NEC form is used to report payments made to independent contractors or freelancers who were paid $600 or more for services provided throughout the year.
This form is essential for:
✔ Keeping your business compliant with IRS regulations
✔ Ensuring contractors receive the necessary tax documents for their own filing
Why is This Deadline Important?
The IRS requires businesses to provide 1099 forms to contractors by January 30, 2025.
📌 This is the last day to issue the forms without incurring penalties.
📌 As a business owner, you are responsible for ensuring these forms are filed correctly and on time.
What Happens If You Miss the January 30 Deadline?
If you miss the January 30 deadline, you could face penalties, including:
$50 per form if filed within 30 days after the deadline.
$110 per form if filed more than 30 days late but before August 1, 2025.
$270 per form if filed after August 1, 2025, or if not filed at all.
Late filing could also delay your contractors’ tax filings, potentially causing issues for them when submitting their returns.
What Should You Do Now?
Review Your Records: Double-check payments to contractors to confirm they meet the $600 threshold for issuing a 1099.
Prepare 1099 Forms: Gather necessary details for each contractor, including:
- Full Name
- Address
- Taxpayer Identification Number (TIN)
File on Time: Ensure forms are submitted to the IRS and sent to your contractors by January 30, 2025.
