Filing your small business’s 1099 tax forms matters whether you are doing it for tax year 2025 or any other tax year. It may feel overwhelming whenever you try to file taxes for previous years on top of the current tax year, but using software and understanding the IRS e-file 1099 penalty late submission guide can help streamline the process. Knowing what the Internal Revenue Service expects from you and how penalties can add up for your business is important, but so is having a clear idea of the many e-filing advantages.
There is a less than 1% error rate for e-filed tax returns versus 21% for paper returns.
Keep careful track of all your different 1099 filing deadlines for 2025 so that your independent contractors do not run into issues of their own. Key employment tax due dates are:
- Contractor copy deadline: Jan. 31 (except for weekends or legal holidays)
- IRS paper copy deadline: Feb. 28
- IRS e-file deadline: March 31
State filing deadlines depend on your state, but getting 1099 tax software is a good way to make sure that you understand your state’s requirements and any liabilities. Advanced Micro Solutions created a base W-2/1099 Forms Filer program with modular capabilities to streamline how you electronically file year-end 1099 or W-2 forms to the IRS and/or Social Security Administration.
Why Might Small Businesses File 1099s Late?
It is not unusual for businesses of any size to run into 1099 obstacles. It is important to minimize the risk of these errors for your business’s ongoing success and financial stability. Some of the reasons why you might miss a 1099 deadline are:
- Disorganized recordkeeping
- Using manual spreadsheets instead of payroll or contractor software
- Employee and/or contractor misclassifications
- Missing or incorrect W-9 forms
- Last-minute collection of contractor data
Getting comprehensive 1099 filing software is the simplest way to combat common obstacles. Software that is scalable will allow small businesses to keep their forms in a safe and secure location for the IRS’ mandated timeline. Software that supports employee and non-employee compensation will also make it easier to file forms for each type of worker classification.
If you find that you often do not have the correct W-9 information or you wait too long to gather data, consider upgrading your system. You may need a system that can better flag any of your inconsistencies and make distributing forms simpler and more efficient.
How 1099 Software Helps Prevent Late Submission Penalties
Simplicity and affordability are important with any software, but especially for small businesses who need to e-file 1099s on a budget. Take steps sooner rather than later to ensure that your 1099 program allows you to:
- Track payments throughout the year
- Store W-9 and other essential information in an electronic format
- Directly e-file with a few simple clicks
- Generate the forms that you need throughout the year
- Verify EIN/SSN formats
- Eliminate the risk of duplicate entries
- Flag incorrect entries
There may be times when you still encounter 1099 late submission penalties, but try not to despair. The best thing that you can do is find out what went wrong and take action with an upgraded software system, or simply make a note so that you do not repeat the error.
Filing 1099s with AMS Software
Our complete database system generates a variety of 1099s, W-2s, and related forms. The easy-to-use, menu-driven format for our W-2/1099 Forms Filer simplifies how users select payers and forms. It is also the cheapest solution on the market for small businesses filing 1099s and other forms for tax year 2025. The system supports up to 99,999 employees or recipients per payer with no extra charge if you use additional forms.
Small businesses can take advantage of our tools across all 50 states, plus the District of Columbia and Puerto Rico. For first-time 1099 filers, entering data onto entry screens that operate as facsimiles of actual forms helps to eliminate confusion or uncertainty.
Are you interested in building out our base program with a full-accounting suite of tools or a few add-on features? We have six optional add-on modules that you can consider bringing into the mix. Download our free 1099-etc Demo software and see how they interact with the core 1099 program and handle your actual data. The modules are:
- AMS Payroll
- Software Generated Forms
- E-File Direct
- Affordable Care Act Filer
- Forms Filer Plus
- 1042-S Filer
Still not sure if AMS products are right for your business? Head on over to our Frequently Asked Questions page and learn more about how adaptable the system is for many types of users.