DENISE STUBBS, CPA

You opened your mail expecting a W-2 and got a 1099-NEC or 1099-MISC instead. If you're panicking right now, you're not alone. Thousands of gig workers, contractors, and people with side hustles are staring at these forms, wondering what just happened to their taxes.

Filing 1099s isn't optional—it's an IRS requirement. Miss the deadline or file incorrectly, and you could face penalties starting at $60 per form. But here's what most business owners don't realize: you can't file a 1099 without first collecting a W-9 from your contractors. Without it, you're exposed to IRS penalties, potential tax liability, and year-end chaos that could have been easily avoided. The deadline is January 31, 2026, and the clock is already ticking.