Start Your 1099 Prep Now: Why Waiting Until January Creates Problems
1099 prep feels like a January problem until it isn't. Starting the review now, in November, while there's still time to collect missing paperwork and fix gaps, avoids the scramble that catches so many businesses every year right as the January 31 filing deadline closes in.
The Deadline Is Earlier Than People Remember
Forms 1099-NEC are generally due to both the recipient and the IRS by January 31 — there's no extra runway the way there is with some other filings. That deadline arrives just weeks into the new year, which doesn't leave much room to track down a missing W-9 or a forgotten vendor if the review starts after the holidays.
The Threshold Changed This Year, Which Adds a Wrinkle
For payments made in 2026, the reporting threshold for Form 1099-NEC and 1099-MISC increased from $600 to $2,000. That's good news for reducing form volume, but it also means a review of who's actually going to cross the threshold this year needs to happen with real numbers, not last year's list carried forward automatically — a vendor who was over $600 but under $2,000 no longer needs a form, while a vendor who crossed $2,000 for the first time might be new to the list.
Missing W-9s Are the Most Common Bottleneck
A vendor who was paid throughout the year but never provided a completed W-9 is the single most common reason 1099 prep drags into February. Chasing down a taxpayer ID number and address in November, while the relationship is active and the vendor is responsive, is a fundamentally easier conversation than trying to reach the same vendor in late January when they've moved on to other clients or stopped responding.
A Simple Review Now Prevents a Complicated One Later
A November review doesn't need to be exhaustive — running a report of vendor payments year-to-date, flagging anyone approaching the threshold, and confirming a W-9 is on file for each one is usually enough to catch the gaps that matter. Two months of runway to fix what's missing is worth far more than the review itself takes to complete.
This information is educational and describes general 1099 filing considerations under current law, including the increased 2026 threshold. It does not determine which vendors require a 1099 for your specific business. If you haven't started your 1099 review yet, now is still good timing — our bookkeeping team can help you run the report and identify what's missing.
Related service: IRS Resolution & Representation
Comments