1099-NEC filing, minus the January panic

Who gets a 1099-NEC from you

Any individual, partnership, or estate you paid $600+ for services during the year: subcontracted crews, irrigation installers, tree trimmers, the mechanic who services your fleet, your marketing freelancer. Services only — materials, plants, and equipment purchases don’t count. Personal payments don’t either.

The W-9 is the whole ballgame

Collect a completed W-9 before you pay anyone. Make it firm policy. It gives you the exact legal name and tax ID the 1099 must match; without it you’re risking incorrect filings and backup-withholding headaches. Keep W-9s on file at least four years.

Deadlines and penalties

Copies go to your contractors and the IRS by January 31 (for this year’s forms, Monday, February 2, 2026). Penalties stack per form — $60 each if you’re up to 30 days late, climbing steeply after, with no cap if the IRS decides you ignored the requirement on purpose. Filing 10+ forms? Electronic filing is required — the IRS IRIS system or an approved provider gives you confirmation either way.

If you make a mistake

Don’t panic — file a corrected 1099-NEC (check the “corrected” box) to both the IRS and the contractor promptly, and keep copies of everything for four years.

Watch the full breakdown

Prefer video? Everything in this article, straight from Taucier — and there’s more on our YouTube channel.

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