The IRS has released IR-2026-01 on January 6, 2026, to help taxpayers and businesses get ready for the 2026 tax season. This filing season covers income earned during the 2025 tax year. The notice shares useful reminders, checklists, and updates that are important for people who deal with Form 1099 reporting, including freelancers, small businesses, and online sellers.
The information shared below is compiled from publicly available IRS guidance and related sources, and is meant to help taxpayers understand what to prepare early.
Table of Contents
Review of 2025 Tax Law Changes
One of the key reminders in IR-2026-01 is to review tax law changes that apply to 2025 income. Recent legislation has added new deductions and credits that may affect people who receive or file Form 1099s.
Income from freelance work, gig platforms, and online sales must be reported properly. For online payments, Form 1099-K is issued when total payments are over $20,000 and more than 200 transactions during the year. Independent contractors and service providers will continue to receive Form 1099-NEC for non-employee payments.
The IRS encourages taxpayers to review these rules early using IRS online tools, so there are no surprises later.
SSN and ITIN Requirements for Credits
Another important update relates to SSN and ITIN requirements. Some tax credits now require a valid SSN or ITIN to be issued by the return due date, including extensions.
For joint filers, both spouses may need valid numbers to claim certain credits. This can affect people who receive Form 1099-NEC or Form 1099-MISC income, especially independent workers and consultants.
Contractors who are individuals generally receive 1099s using their SSN or ITIN. Business entities usually use an EIN. Making sure these numbers are correct before filing helps avoid delays and rejected returns.
Move Away From Paper Refunds
The IRS also shared updates related to refund payments. A recent executive order supports moving away from paper refund checks and toward direct deposit.
Direct deposit is faster and more secure. Taxpayers who do not have a bank account are encouraged to explore low-cost or basic account options. This change can benefit people who expect refunds based on income reported on Form 1099s.
Choosing direct deposit can help refunds arrive sooner once the return is processed.
Digital Assets and Income Reporting
Digital assets are another area of focus. Taxpayers must answer the digital asset question on Form 1040, even if they did not receive a reporting form.
Income from cryptocurrency, NFTs, or similar assets must still be reported. While Form 1099-DA reporting by brokers is expected to start in 2026, taxpayers are responsible for reporting digital asset activity even without a form.
This reminder connects digital income to broader 1099 reporting rules for interest, investment, and other income.
Steps to Prepare Now
The IRS suggests taking simple steps now to reduce stress later:
- Gather 2025 income records, receipts, and Form 1099 details
- Access your IRS Online Account to check balances and preferences
- Review payment history and saved bank details
- Stay updated on new programs, such as retirement savings pilots for eligible families
Starting early can make the filing process smoother once 1099 forms are issued in late January.
Filing Form 1099 Online Made Simple
For businesses and payers, using an IRS-authorized e-filing provider can help avoid errors and missed deadlines. Form1099Online.com is an IRS-authorized Form 1099 e-file service that helps users prepare, validate, and submit 1099 forms online.
By filing electronically, businesses can save time, reduce manual work, and meet IRS requirements more easily during the busy tax season.
Conclusion:
IRS IR-2026-01 highlights the importance of early preparation, correct reporting, and using digital tools. Reviewing these updates now can help taxpayers and businesses stay organized and ready for the 2026 filing season.