Information return filing requirements continue to evolve for the 2026 tax season, which covers Form 1099 reporting for the 2025 tax year. The IRS has outlined penalty structures, reporting deadlines, and system changes that affect businesses, payers, and filers responsible for submitting Form 1099 series returns.
Understanding these updates can support timely preparation and accurate filing.
Table of Contents
Penalty Structure for Late or Incorrect 1099 Filings
The IRS applies penalties on a per-form basis when Form 1099 filings are late, incomplete, or contain incorrect information. For the 2026 tax season, penalty amounts reflect inflation-adjusted thresholds and vary based on how late a form is filed or corrected.
Penalty Tiers (Per Form)
- Up to 30 days late: $60 per form
- 31 days late through August 1: $130 per form
- After August 1 or not filed: $340 per form
- Intentional disregard: $680 or more per form, with no maximum limit
These penalties apply separately to:
- Forms filed with the IRS
- Copies furnished to recipients
Penalty amounts are subject to IRS determination based on filing circumstances.
Annual Penalty Caps and Business Size Considerations
The IRS sets maximum annual penalty limits for certain filers, including small businesses, when failures are not due to intentional disregard. These caps vary based on business size and the number of information returns filed during the year.
For high-volume filers, annual penalty limits may exceed $1 million, depending on filing volume and IRS classification. Intentional disregard penalties are not subject to annual caps.
Key 1099 Filing and Furnishing Deadlines for 2026
Several dates are commonly applicable to Form 1099 reporting for the 2025 tax year:
January 31, 2026
- Furnish Form 1099-NEC (Nonemployee Compensation) to recipients
- File Form 1099-NEC with the IRS
- Furnish and file most other applicable Form 1099 series
February 28, 2026
- Paper filing deadline for certain Form 1099 returns, when paper filing is permitted
March 31, 2026
- Electronic filing deadline for Form 1099 returns
- Applies to Form 1099-DA for digital asset transactions
August 1, 2026
- Common cutoff date associated with higher penalty tiers
- Relevant for addressing IRS notices, including TIN-related correspondence
Deadlines may vary depending on form type, filing method, and filer circumstances.
TIN Mismatch Notices and Timing Considerations
When taxpayer identification numbers (TINs) do not match IRS records, the IRS may issue notices requesting correction or follow-up. Addressing these notices before applicable deadlines may affect how penalties are assessed.
Responding to IRS correspondence within the applicable timeframe can be relevant when determining penalty tiers.
Updates Affecting 2025 Reporting in the 2026 Filing Season
Form 1099-K Threshold Developments
The phased implementation of the Form 1099-K reporting threshold continues. For transactions reported for 2025:
- Reporting generally applies to $600 or more in transactions, with no minimum transaction count
- Certain de minimis exceptions remain delayed
Filers and payees may continue to see changes as IRS guidance evolves.
Introduction of Form 1099-DA (Digital Assets)
For the first time, brokers reporting qualifying digital asset transactions for 2025 are required to use Form 1099-DA. This form is used for reporting covered sales and exchanges of digital assets.
- Applies to broker-reported digital asset activity
- Separate from real estate reporting, which continues under Form 1099-S
Transition from FIRE to IRIS
The IRS is transitioning away from the legacy FIRE system and moving toward IRIS (Information Returns Intake System) for electronic submission of Form 1099 returns.
IRIS is intended to support:
- Electronic filing of Form 1099 series
- Direct data entry and upload options for filers
Electronic filing requirements remain subject to IRS thresholds and technical specifications.
Filing Form 1099 Electronically
Many filers meet IRS requirements to submit Form 1099 returns electronically. IRS-authorized e-file providers support electronic filing in accordance with IRS system rules and submission standards.
Form1099Online.com is listed by the IRS as an authorized e-file provider for filing Form 1099 series information returns electronically.
File Form 1099 Before the Deadline
Preparing Form 1099 returns ahead of applicable deadlines can help reduce last-minute filing pressure and allow time to review information for completeness.
Businesses and payers filing Forms 1099 for the 2025 tax year may use Form1099Online.com, an IRS-authorized e-file provider, to submit information returns electronically before the required deadlines.
Important Note
This article summarizes publicly available IRS information for general awareness. Filing requirements, penalties, and deadlines depend on individual circumstances and IRS determinations. For official guidance, refer to IRS publications and announcements applicable to your filing situation.