If you pay contractors or have employees, “information returns” are the forms you file to report those payments to the IRS/SSA—most commonly 1099-NEC/1099-MISC and W-2/W-3. IRS+2IRS+2

1) “Do I need to issue a 1099?”

Usually yes if your business paid $600+ to a nonemployee for services during the year (reported on Form 1099-NEC). IRS

2) “Is the threshold $600 or $400?”

For 1099-NEC, the common threshold is $600. IRS
The $400 number people quote is a different rule (self-employment tax filing concept), not the 1099-NEC threshold.

3) “Which form do I use: 1099-NEC or 1099-MISC?”

• 1099-NEC is used for nonemployee compensation (contractor payments for services). IRS

• 1099-MISC is used for certain other payment types (rents, prizes/awards, etc.). IRS

4) “What are the deadlines?”

Key ones most businesses care about:

• 1099-NEC: file by January 31. IRS

• W-2/W-3 (Tax Year 2025): file with SSA by February 2, 2026. IRS+1
  (Deadlines move to the next business day if they fall on a weekend/holiday.) IRS+1

5) “Am I required to e-file?”

If you have 10 or more information returns total, you generally must file electronically (the 10-return rule is an aggregate threshold and includes W-2s). IRS+2IRS+2

6) “Do I need to issue a 1099 if I paid by credit card/Stripe/PayPal?”

Often, payments made through a third-party network may be reported on Form 1099-K by the payment platform instead of your 1099-NEC. This is one of the most common “double reporting” confusion points—so it’s worth reviewing your payment method before filing. IRS

7) “Do I issue 1099s to LLCs or corporations?”

Sometimes yes, often no—this depends on the payment type and entity. The IRS instructions and “Guide to Information Returns” are the reference point here, and it’s one of the biggest areas where businesses make mistakes. IRS+1

8) “What if the contractor won’t give me a W-9?”

This is where businesses get stuck—because you still need correct taxpayer info to file. If you’re missing info, you may need to follow the IRS rules around requesting the payee’s TIN and (in some cases) backup withholding. IRS

9) “What if we filed and then found a mistake?”

Corrections are common—wrong name/TIN, wrong amount, missing contractor, etc. A clean process matters because corrections can snowball quickly during January/February.

10) “What’s the easiest way to avoid problems next year?”

• Collect W-9s up front

• Keep contractor totals clean throughout the year

• Reconcile payroll reports to books before forms go out

• Don’t wait until the last week of January

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