How to File 1099s Electronically in 2025

Starting in 2025, the IRS requires most businesses to file 1099s electronically. If you file 10 or more returns — including W-2s, 1099-NEC, or 1099-MISC — you must e-file. This rule applies to Tulsa small businesses, freelancers, and anyone issuing payments to contractors. Let’s walk through what’s changing and how to stay compliant.

1. Who Must File Electronically?

If your business files 10 or more information returns total — not just 1099s — you must use the IRS e-file system. This includes W-2s, 1099-NEC, 1099-MISC, 1098, and others. The threshold used to be 250, but the IRS lowered it to 10 to improve accuracy and reduce paper processing.

2. What Is the IRS FIRE System?

The IRS Filing Information Returns Electronically (FIRE) system is the platform used to submit 1099s online. You’ll need to apply for a Transmitter Control Code (TCC) before you can file. This process can take several weeks, so don’t wait until January. IRS FIRE system overview

3. What Forms Must Be Filed?

Most small businesses file 1099-NEC for contractor payments and 1099-MISC for rent, prizes, or legal fees. If you paid someone $600 or more in 2025 and they’re not an employee, you likely need to file a 1099. We cover this in our bookkeeping services and tax planning consults.

4. Deadlines to Know

1099s must be sent to recipients by January 31, 2026. Electronic filing with the IRS is also due by that date. If you miss the deadline, penalties range from $60 to $310 per form, depending on how late you file. Visit our News & Information hub for deadline reminders.

5. How to Prepare

Start by collecting W-9 forms from all contractors. Verify names, addresses, and taxpayer ID numbers. Use accounting software or a payroll platform to generate 1099s. Then, upload them to the FIRE system or use an IRS-approved provider. If you’re unsure, we can help you set up your filing process.

Electronic 1099 filing for small businesses

Image: Preparing 1099s for electronic filing

Final Thoughts

Electronic filing is now the standard — and the penalties for missing it are steep. By preparing early, you can avoid stress and stay compliant. Our Tulsa-based team is ready to help you gather forms, set up your system, and file on time.