1099 Preparation & Filing
1099 Filing: Report on Time, Avoid Penalties
If you pay an independent contractor $600 or more in a year, you must send them a 1099-NEC by January 31 and file a copy with the IRS. Missing the deadline triggers penalties ranging from $60 to $310 per form.
$600
Filing threshold
Jan 31
Sending deadline
$310
Max penalty per form
Who this is for
- Small business owners who hire independent contractors (drivers, mechanics, cleaners)
- Businesses paying rent, legal fees, or other non-employee services over $600
- Business owners who want to stay compliant but aren't sure where to start
What we handle
- W-9 collection assistance
- 1099-NEC / MISC PDF generation
- IRS e-filing submission
- Copy delivery to recipients by mail or email
Standard package includes 5 forms; additional forms billed per piece. Collect W-9s from contractors well before January — don't leave it for the last week.
Frequently Asked Questions
Do I need to send a 1099 to an LLC or corporation I paid?+
Usually no — payments to C-Corps and S-Corps are exempt from 1099-NEC (attorney fees are an exception). Payments to SMLLCs or sole proprietors do require one. Collect a W-9 before paying — the Tax Classification box tells you exactly what's required.
What if the contractor won't give me a W-9?+
You're required by IRS rules to apply Backup Withholding (24% of the payment). In practice, it's much easier to require a W-9 before starting work — year-end chasing is the worst time to collect.
I sent out a 1099 with an error — can I fix it?+
Yes. Submit a Corrected 1099 (check the CORRECTED box at the top) and notify the recipient so they can update their return. Do it promptly — mismatched numbers between your filing and theirs can attract IRS attention.