Get Ready for 1099 Season: Why Now Is the Time to Collect W-9s

A Helpful Year-End Reminder from Our Friends at EVT Consulting

As we head into the final few months of the year, now is a great time for business owners to start getting their records in order for 1099 season.

I’m sharing this helpful reminder from my friend Erin Turco and the team at EVT Consulting about something that can save business owners a lot of headaches in January: making sure you have current W-9s on file for your vendors and contractors.

There’s also an important change for 2026: the general reporting threshold for many payments reported on Forms 1099-NEC and 1099-MISC has increased from $600 to $2,000. But that doesn’t mean you should wait until a vendor reaches $2,000 to request a W-9. Collecting one when you first begin working together is still a great business practice.

Here’s what Erin and her team recommend as we prepare for year-end:

As we move into the final quarter of the year, this is a great time to double‑check your vendor files and make sure you have current W‑9s on hand. Clean documentation now means a smoother, stress‑free 1099 season later.

Why W‑9s Matter

Form W‑9 provides the legal name, business classification, address, and tax ID you’re required to have before paying a contractor or vendor who may need a 1099. Missing or outdated forms are one of the most common causes of filing delays and corrected forms in January.

Best Practices for 2026

• Require a W-9 before issuing payment. If a vendor who is subject to information reporting fails to provide a required taxpayer identification number, you may be required to withhold 24% federal backup withholding from reportable payments. Establishing a policy of obtaining the W-9 before the first payment can help avoid this situation.

• Request updated W‑9s when information changes. New addresses, entity changes, or name changes all require a new form.

• Store W‑9s securely. These forms contain sensitive information and should be kept in a protected digital or physical file.

• Review your vendor list quarterly. This helps you catch missing forms long before year‑end.

  
  

2026 1099 Reporting Requirements

Beginning with the 2026 filing year, the IRS has increased the reporting threshold for Forms 1099‑NEC and 1099‑MISC to $2,000 for most payments to non‑employees. Even with the higher threshold, you should still collect a W‑9 before making any payment. It protects you if reporting becomes necessary later and ensures your records stay compliant.

If a vendor fails to provide a W-9, don't simply ignore the issue. Missing or incorrect taxpayer identification information can create additional filing and backup-withholding requirements for the business. This is another reason it's best to obtain a completed W-9 before making the first payment rather than trying to collect the information at year-end.

Common Issues We See

• Vendors paid throughout the year with no W‑9 on file

• Incorrect legal names or outdated EINs

• Contractors switching entity types without notifying the business

• Waiting until January to request forms, when vendors are harder to reach

If you’d like help reviewing your vendor list, tightening up your W‑9 workflow, or preparing for 1099 season ahead of time, EVT is here to support you.

A Note from Casler Financial

A little preparation now can make January much easier. If you own a business, take a few minutes before year-end to review your vendor list and make sure you have completed W-9s on file—especially for contractors and other vendors who may require 1099 reporting.

And remember, even with the new $2,000 reporting threshold, we recommend collecting a W-9 when you onboard a new vendor rather than waiting to see how much you'll pay them during the year.

Thank you to Erin Turco and EVT Consulting for sharing this timely reminder with us!

If you have questions about whether a payment needs to be reported on a 1099 or how the new 2026 reporting thresholds apply to your business, the Casler Financial team is happy to help. Schedule an advisory session here:

https://www.caslerfinancial.com/scheduling