Your Business Guide to 1099 Filing in 2025: Deadlines and Compliance Tips with Yearli
Key Deadlines and Reminders for Businesses
As 2025 comes to a close, businesses must prepare for a critical compliance task: filing IRS Forms 1099-MISC and 1099-NEC. These forms are essential for reporting payments to non-employees, vendors, and service providers. Whether you're a small business owner or a tax professional, staying informed about deadlines and requirements is key to avoiding penalties.
Understanding the Forms
Form 1099-NEC
Used to report nonemployee compensation of $600 or more, including payments to:
- Independent contractors
- Freelancers
- Consultants
- Attorneys (for services)
Form 1099-MISC
Used to report miscellaneous information, such as:
- Rent payments
- Royalties ($10 or more)
- Prizes and awards
- Medical and health care payments
- Gross proceeds paid to attorneys (Box 10)
Key IRS Deadlines for 2025 (Electronic Filing)
| Form | Recipient Deadline | IRS E-Filing Deadline |
| 1099-NEC | January 31, 2026 | January 31, 2026 |
| 1099-MISC | January 31, 2026 | January 31, 2026 |
Note: If a deadline falls on a weekend or holiday, it moves to the next business day.
Yearli Filing Tips
Yearli is a trusted platform for e-filing W-2 and 1099 forms. To ensure timely submission:
- Submit forms to Yearli before 8:00 PM EST on the day of the deadline.
- Yearli guides users through federal and state filing requirements during data entry.
- State deadlines vary. check with your state or consult a tax professional.
Important Reminder for 2025
E-Filing Threshold Lowered
If your business files 10 or more forms, you need to file electronically. For example; If your business files 5 W-2 forms, 3 1099-NEC forms and 3 1099-MISC forms, you must file electronically.
Penalties for Late Filing
Late filing can result in penalties ranging from:
- $60 to $340 per form, depending on how late the submission is.
- Intentional disregard of filing requirements:
- Minimum penalty of $680 per form
Best Practices for Businesses
- Collect W-9 Forms Early: Request a completed W-9 before issuing payments to determine if a 1099 is required.
- Verify Entity Type: LLCs may be taxed as sole proprietors, partnerships, or corporations—this affects 1099 requirements.
- Use Yearli’s Tools: Automate and streamline your filing process to reduce errors and meet deadlines.
Final Thoughts
With IRS changes and stricter deadlines, businesses must stay proactive in their 1099 filing strategy. Yearli offers a reliable solution to help meet federal and state requirements efficiently. Start preparing now to avoid last-minute stress and costly penalties.
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The 2026 filing season (for tax year 2025) is the final season before the $600 threshold applicable to certain Forms 1099-NEC and 1099-MISC payments increases to $2,000. That threshold rises to $2,000 starting with tax year 2026 payments, reported in the 2027 filing season.Read More
