October 2024: Important Changes to 1099 and 1042-S Reporting

June 13, 2025

There are important new changes from the IRS relative to 1099 and 1042-S forms, as well to as W-9s and W-8s. A big one is the new W-9 form that rolled out earlier this year, but there are others. There’s also a new Form W-8EXP, and additional information has been published for evaluating a foreign vendor’s claim of reduced tax withholding on Form W-8BEN-E. In addition, the requirement for electronic filing of 1099 and 1042-S forms has been expanded, and there are increased penalties for filing errors.

In short, there’s a lot to take in! Read on for some helpful tips and resources.

This Month’s Quick Take: What’s Form 1099-DA?

IRS Form 1099-DA may be unfamiliar to many, but it’s now available in draft form on the IRS website, along with a draft version of its instructions. Starting in 2025, it’s the form that digital asset brokers are supposed to use to report their sales. This may not apply most businesses, but if you happen to trade in cryptocurrency or NFTs (non-fungible token assets) like videos or other digital content that resides on the blockchain, you’ll probably want to acquaint yourself with this form in the coming year.

1099s Issued with the Wrong TIN

What’s the proper course of action when it’s discovered that an organization issued all of its 1099s with the wrong TIN number for two consecutive years? The IRS accepted the file but didn’t contact the company about the error. What to do?

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Behind the Spotlight: An Insider’s Guide to Speaking at an IOFM Conference

Have you ever considered speaking at an IOFM Conference? Now’s your chance to get an exclusive look behind the scenes with two of IOFM’s speakers. Learn how they began their journey with IOFM, gain insights into their upcoming sessions at the Fall Conference, and discover their expert tips for maximizing your experience at IOFM Fall!

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“New Hire” Reporting for Contractors?

Previously, businesses only had to report new hires when they were onboarding new employees, but many states have already extended this requirement to new independent contractors. The primary purpose is to locate “deadbeat parents” who owe child support.

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FREE WEBINAR: 1099 and 1042-S Compliance Insights and Updates from the IOFM Master Guides for 2024

Watch this free, on-demand webinar exploring the latest updates to the IOFM Master Guides to Form 1099 and 1042-S Compliance. This is your chance to learn about new electronic filing requirements, IRS systems, and important changes that impact your tax reporting for 2024.

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Reporting Payment to ISPs

A member asked whether they needed to issue a 1099 to their internet service provider (ISP). The ISP is not classified as a corporation, but might this be a situation similar to a telephone service exemption? Read what our experts said.

Stay Compliant with IOFM’s 1099 and 1042-S Master Guides

Each year, the IRS rolls out numerous updates to the tax code, and staying compliant is crucial to avoid costly penalties. IOFM Members can access the Master Guides to Form 1099 and Form 1042-S Compliance for FREE to stay on top of these changes. Don’t miss out—access the guides today!

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