Insights for information reporting pros.

IRS penalties for 2026 information returns due in 2027 start at $60 per form and reach $340 per form. See the deadlines, the penalty tiers, and how to avoid them.

Direct Answer The IRS is retiring the FIRE system. The last day to transmit information returns through FIRE is November 19, 2026 at 3 p.m. ET, and starting January 1, 2027 the Information Returns Intake System (IRIS) becomes the only electronic filing system for...

Direct Answer Yes, if you file 10 or more information returns in a calendar year, you must file them electronically. The threshold is an aggregate count across almost all information return types combined, not 10 of each form. Forms W-2 filed with the Social Security...

Direct Answer Use Form 1099-NEC to report at least $2,000 in nonemployee compensation for services paid during 2026. Use Form 1099-MISC for other reportable payments, including rents, prizes and awards, certain medical payments, and gross proceeds paid to an attorney....

Direct Answer Many errors on an accepted information return can be corrected with a one-step correction, including an incorrect recipient name or TIN. If the wrong form type was filed, the correction generally takes two steps: zero out the incorrect return, then...

Direct Answer Clean your payee data before filing season. Collect a Form W-9 for each reportable payee, verify names and TINs, classify payments by form type, and prepare a simple Excel workbook with consistent columns. Testing a small sample before January can catch...

Direct Answer Issuing a return to the IRS and furnishing a copy to the payee are separate responsibilities. If you provide a paper recipient statement, verify the payee's address, use the correct copy, and mail it by the applicable due date. Keep a record of what you...

Direct Answer Filing your 1099s with the IRS does not always satisfy your state. The Combined Federal/State Filing program lets the IRS forward eligible information returns to participating states automatically, which covers many filers, but not all forms, not all...

Direct Answer The One, Big, Beautiful Bill retroactively reinstated the pre-2021 reporting threshold, so third party settlement organizations are not required to file Form 1099-K unless gross payments to a payee exceed $20,000 and the number of transactions exceeds...