March 2025 marks one of the most significant periods of the tax season for businesses, as major electronic filing (e-filing) deadlines approach for 1099 forms, ACA health coverage reporting, and 1042-S filings. Businesses must ensure all required forms are submitted electronically before the following IRS-mandated deadlines to remain compliant and avoid penalties.
1099 E-Filing Deadlines for Tax Year 2024
Businesses must file various 1099 forms to report non-employee compensation, financial transactions and other income. While the e-filing deadline for 1099-NEC (Non-Employee Compensation) is January 31, 2025, most electronic 1099 filings are due by March 31, 2025. This includes:
- 1099-A, Acquisition or Abandonment of Secured Property
- 1099-B, Proceeds from Broker and Barter Exchange Transactions
- 1099-C, Cancellation of Debt
- 1099-DIV, Dividends and Distributions
- 1099-G, Certain Government Payments
- 1099-INT, Interest Income
- 1099-K, Payment Card and Third-Party Network Transactions
- 1099-LTC, Long-Term Care and Accelerated Death Benefits
- 1099-PATR, Patronage Dividends
- 1099-R, Distributions from Pensions, Annuities and other Retirement Accounts
- 1099-S, Proceeds from Real Estate Transactions
- 1099-SA, Distributions From an HSA
Important note: Even though the IRS allows e-filing until March 31, recipients must receive their copies by January 31 for most 1099 forms.
March 17, 2025: E-Filing Deadline for 1042-S & 1042
Businesses that make payments to foreign individuals, entities, or non-U.S. residents must e-file Form 1042-S by March 17, 2025 to report income subject to U.S. withholding tax. Unlike Form 1099, which is used for U.S. taxpayers, Form 1042-S applies specifically to non-U.S. residents and must be submitted separately for each recipient.
Important note: The foreign payee must also receive a copy of Form 1042-S to report income on their tax filings.
Businesses that file Forms 1042-S must also file an accompanying Form 1042: Annual Withholding Tax Return for U.S. Source Income of Foreign Persons with the IRS. Form 1042 must be electronically filed via the IRS Modernized eFile (MeF) system. Learn more about 1042 electronic filing here.
March 31, 2025: ACA e-filing deadline
Employers who provide health coverage to employees must electronically file Forms 1095-B and 1095-C by March 31, 2025, to comply with the Affordable Care Act (ACA). This deadline also applies to Form 1094-C, which serves as the transmittal summary for employers filing 1095-C forms.
Important Note: While the e-filing deadline is March 31, employers must distribute 1095-B and 1095-C forms to employees by January 31, 2025, if an employee requests a copy. If no request is made, employers have until March 3, 2025 to furnish these forms.
Does my business need to e-file?
As of 2023, the IRS updated its e-filing requirements, significantly lowering the threshold for mandatory electronic filing and expanding the scope of affected tax forms. Here’s what businesses need to know:
- Previously, businesses were required to e-file if they submitted 250 or more returns of a single type. Under the new regulations, this threshold has been reduced to just 10 or more returns across all types of information returns in a calendar year.
- Filers must now combine all information returns—such as 1099s, W-2s, and ACA forms—when determining whether they meet the 10-return threshold. Previously, the 250-return limit was applied separately to each form type.
- Corporations that report less than $10 million in total assets at the end of their taxable year are no longer exempt from e-filing their income tax returns. These businesses must now comply with mandatory e-filing requirements.
- Partnerships with more than 100 partners are now required to e-file their information returns. Partnerships that file 10 or more returns of any type during the calendar year must e-file their partnership tax return as well.
To avoid last-minute issues and ensure accuracy, don’t wait until March. Organize and verify data early, starting with obtaining a completed W-9 from every independent contractor, freelancer, or vendor before making payments. Also, maintain a digital record of all payments and tax documents to avoid scrambling for information at year-end.
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