US 1099 Forms and Electronic Reporting Updates for Tax Year 2025

Generate Forms 1099-MISC, 1099-NEC, 1096, and the corresponding electronic files in compliance with the 2025 US Internal Revenue Service specifications. Excess golden parachute payments are no longer reported in Box 14 on Form 1099-MISC. Amounts previously reported in Box 14 on 1099-MISC for excess golden parachute payments must now be reported in Box 3 on Form 1099-NEC. This update ensures alignment with the latest IRS instructions for excess golden parachute payments, form revisions, electronic file format updates, and changes to state participation in the Combined Federal/State Filing Program.

1099-MISC and 1099-NEC Preprinted Form Changes:

  • Excess golden parachute payments are no longer reported in Box 14 on Form 1099-MISC.
  • Amounts previously reported in Box 14 for excess golden parachute payments must now appear in Box 3 on Form 1099-NEC.
  • Updated revision details to (Rev. Apr 2025) on all copies.
     

1099-MISC Form

1099-MISC Form

1099-NEC Form

1099-NEC Form

1099-MISC and 1099-NEC Electronic File Format Changes:

  • Excess golden parachute payments are now excluded from FIRE System electronic file output.
  • These payments must be filed using the Information Returns Intake System (IRIS) or submitted on paper.
  • Corrections for prior-year golden parachute payments filed via the FIRE System must now be made on paper.
  • Combined Federal/State Filing Program updates:
    • Oregon (code 41) is added.
    • Missouri (code 29) is removed.
       

Manage Tax Regions Page

Manage Tax Regions Page

1096 Form Changes:

  • 1096-NEC will now include excess golden parachute payment summaries.
  • 1096-MISC will exclude these amounts.

The business benefits are: 

  • Enables accurate, up-to-date US tax reporting for 2025. 
  • Mitigates compliance risk. 
  • Reduces the potential for penalties due to reporting errors. 
  • Aligns electronic and paper reporting procedures with current IRS specifications.

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Please note that US 1099 Electronic and Forms Reporting Changes for Tax Year 2025 changes were backported to the 25D update and included in the MOS Note as well.

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