IRS Revises Form 1099: Here’s a Quick Rundown of What’s New
After more than a year, the IRS has made changes to Form 1099-MISC, Miscellaneous Information, and Form 1099-NEC, Nonemployee Compensation.
While changes used to occur annually, now the forms are “continuous use,” meaning the IRS revises them only when needed. The same goes for the instructions.
Here’s a look at the latest versions, released in April 2025, and how they differ from the previous versions, released in January 2024.
What the IRS Said
For starters, companies had been reporting excess golden parachute payments made to employees in box 14 of Form 1099-MISC — now the reporting is done in box 3 of Form 1099-NEC.
Note: Golden parachute payments are various forms of compensation paid to executives due to a merger or acquisition. The payments are reported on Form W-2. However, any excess amounts are reported on the 1099.
A second item is included in the “What’s New” section of Instructions for Forms 1099-MISC and 1099-NEC. It highlights the lower threshold for e-filing — now 10 returns in aggregate.
Several pages into the instructions, the IRS provides specifics on box 3 of Form 1099-MISC. This box is for reporting “Other Income.” The IRS has expanded the list of what should be reported in box 3.
For example, the list now includes this entry: A payment or series of payments made to individuals to achieve a specific objective, produce a report or other similar product, or improve or enhance a literary, artistic, musical, scientific, teaching, or other similar capacity, skill, or talent of the grantee.
There’s this entry, too: Report any Tax Receivable Agreement (TRA) payments. A TRA payment is made pursuant to a contract where a buyer of a business pays a seller of the business for certain reductions in tax liability associated with such sale.
Deadlines Announced
The deadline for filing Form 1099-NEC with the IRS and providing copies for recipients is the same as for Form W-2. Normally, that’s January 31, but in 2026, it’ll be the next business day: February 2.
Recipients also must receive Form 1099-MISC by February 2, 2026. The form is due to the IRS by February 28, 2026, if you file on paper. You have more time — until March 31, 2026 — if you’re filing electronically.
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
Maryland added new restrictions to earned wage access (EWA) programs, becoming the latest state to reshape how these services operate. For ...
A federal court found a worker had been misclassified and identified more than 800 hours of potential overtime. But the Fifth Circuit still...
For employees on reduced schedule FMLA leave, 12 workweeks will get converted into days, hours or minutes. But that can trip up employers, ...
Whether payroll professionals use the most current Excel in Microsoft 365 or an earlier version, they’ll never find enough time to us...
Among the many provisions of the Secure 2.0 Act, several deal with the paperwork responsibilities that fall on retirement plans. The Sec...
Now more than ever, businesses should be prepared to understand and handle union contracts. The reason? A new ruling from the National ...