The 1099 Rules Every Small Business Owner Needs to Know Before January 31
The 1099 Rules Every Small Business Owner Needs to Know Before January 31  
Podcast: Small Business Tax Savings Podcast
Published On: Wed Dec 31 2025
Description: Are you still guessing when it comes to 1099s? Most business owners are. And every January, that confusion turns into stress, penalties, and last-minute cleanup that could have been avoided.In this episode, Mike Jesowshek breaks down everything small business owners need to know about 1099-NEC and 1099-MISC forms, who needs one, who doesn't, the deadlines and the penalties that add up fast. If you want January to feel calm instead of chaotic, this episode gives you the clear rules and simple process to get compliant without overthinking it.👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/Chapters(01:00) What is a 1099?Mike explains how 1099s work, why the IRS requires them, and how they are used to match income across businesses and contractors.(02:12) 1099-NEC vs 1099-MISCWhich form applies to contractors, which applies to rent, and why mixing them up creates problems.(03:30) The Real 1099 DeadlinesWhy January 31 matters, how weekends affect filing dates, and what business owners must send and file by the deadline.(04:55) IRS Penalties That Add Up FastLate filing penalties, intentional disregard penalties, and how missing multiple forms can quickly turn into thousands of dollars owed.(06:40) Who Actually Needs a 1099The $600 cumulative rule, common misunderstandings, and why splitting payments does not avoid filing requirements.(08:20) Common Exceptions Most Owners MissWhen corporations, payment processors, foreign contractors, employees, and personal payments do not require a 1099.(10:15) Why Credit Card Payments Change EverythingHow payment processors issue 1099-Ks and why that removes your filing obligation.(11:30) The 4-Step Process to File 1099s CorrectlyCollect W-9s, prepare the forms, send copies to recipients, and file with the IRS the right way.(13:05) The Biggest 1099 MistakesWhy missing W-9s and messy bookkeeping cause late filings and penalties every year.(14:45) How Software Simplifies the Entire ProcessWhy e-filing tools save time, reduce errors, and make year-over-year filing easier.(15:40) The 2026 Rule Change Every Business Owner Should KnowThe new $2,000 filing threshold, inflation adjustments, and how this change affects future planning.Podcast Host:Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com🚀 Visit:  https://www.TaxSavingsPodcast.com 🚀 Check Out TaxElm: https://taxelm.com/🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/🚀 YouTube: www.TaxSavingsTV.com👋🏼 GET IN TOUCHYou can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏🙌LEAVE A REVIEWIf you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐🎙 ABOUT THE PODCASTThe Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.