💥 Big Beautiful Tax Bill – W-9s & 1099s: Everything You Need to Know 💥
If you work with contractors, freelancers, or vendors in your business, W-9s and 1099s are more than just paperwork — they’re an IRS requirement. And in 2025, the Big Beautiful Tax Bill brings important changes you need to know about.
W-9 – The First Step
A W-9 is a form you collect from anyone you pay for services who isn’t an employee. It gives you their legal name, business name (if different), address, and taxpayer identification number (TIN).
Best practice: Collect a W-9 before you issue the first payment — chasing one down months later is a headache you don’t want.
1099 – Reporting the Payments
A 1099 form reports the total amount you paid a non-employee during the year. The most common is the 1099-NEC, used for contractors. If you pay someone $600 or more for services (including parts and materials provided with the service), you likely owe them a 1099.
What’s Changed for 2025
The Big Beautiful Tax Bill introduced:
- Higher penalties for missing, late, or incorrect forms.
- Tighter filing deadlines (no more “extra grace period” for electronic filing).
- Updated IRS e-file requirements for certain businesses.
Even a small oversight can get expensive — penalties can quickly stack up per form.
Stay Ahead of the Deadlines
- Collect W-9s early in the year.
- Keep accurate vendor payment records.
- Mark your calendar: 1099-NEC forms are due to contractors and the IRS by January 31.
🎥 Watch the full video here
📅 Follow our Big Beautiful Tax Bill series for practical ways to stay compliant and reduce your tax bill. Click here to subscribe to our YouTube channel.
📚Want more practical tax tips for small business owners?
Check out our full Big Beautiful Tax Bill series and other blog posts here.
📞 Want to know how this applies to your business?
Book your free discovery call here, and we’ll build a tax strategy that works with your numbers.