(For payments made in 2025, due January 2026)

As the year winds down, one of the most overlooked pieces of tax compliance for Montana ranchers and business owners is the 1099. Everyone has heard of them — they show up in January, they carry IRS authority, and they tend to cause stress when they arrive late or incorrectly. But at their core, 1099s are simply the IRS’s way of making sure payments made outside of payroll are documented accurately.

Any time you pay someone who isn’t your employee — a mechanic, a fencer, your landlord, your attorney, or even your veterinarian — the IRS wants a record of it. These forms help protect your deductions, ensure the contractor reports their income correctly, and keep your business—or ranch—clean and compliant. And for operations with dozens of vendors, custom operators, or specialized services, getting this right isn’t just a tax formality—it’s part of running a professional outfit.

You may have also heard recent chatter about the IRS raising reporting thresholds.

That is true — just not for this year. The changes do not take effect until 2026, so for payments you make in 2025, the current rules still apply.

With that context in place, here’s what you need to know to stay squared away for the upcoming filing season.

✅ Who DOESN’T Need a 1099?

Skip these:

• Corporations

  • (EXCEPT attorneys and medical/veterinary providers — those DO require 1099s)

• Vendors who only sold you goods (hay, feed, materials, supplies, equipment parts, livestock purchases)

• Banks and financial institutions

• Employees (W-2 instead)

• Payments made by credit card or payment processors (processor issues a 1099-K)

If you only bought a product, you usually do not issue a 1099.

✅ Who DOES Need a 1099?

Issue a 1099-NEC or 1099-MISC if you paid $600 or more in 2025 to:

• Contractors (welders, fencers, mechanics, bookkeepers, day labor, custom operators)

• Landlords (rent payments)

• Attorneys (always)

• Veterinarians

  • Vet payments count as medical payments — a major Montana ranching rule that gets missed every year.

• Anyone you paid for services or labor

• Repairs, consulting, custom work, etc.

💡 Interest Payments: Lower Threshold

Issue a 1099-INT if you paid $10 or more in interest during 2025 to any individual, including:

• Owner-financed property or land purchases

• Interest paid directly to a private party instead of a bank

• Private notes or loans

• Interest your entity pays to you personally

“Self-interest” is just as reportable as vet payments — and just as commonly missed.

📝 W-9s: Recommended, Not Required

A W-9 is recommended for every new contractor, but not required as long as you already have:

• Legal name

• Mailing address

• EIN/SSN

• Entity type

If anything is missing, request a W-9 before year-end.

📦 What to Have Ready

• Vendor name & address

• EIN/SSN

• Payment type (services, rent, vet/medical, interest, etc.)

• Total paid in 2025

• W-9 if available

📅 Deadlines

• January 31, 2026 — IRS filing & recipient copies

• Swanson Agency guaranteed deadline: January 19, 2026

Submit by January 19 so we can ensure on-time filing.

How to Submit 1099 Info (Securely)

Your Canopy portal will show a task titled:

“1099 Information Request”

Inside you can:

1. Enter your business info

2. Add each contractor/vendor

3. Upload W-9s

4. Upload your completed PDF

5. Review & submit securely

Prefer paper?

👉 Fillable PDF: www.swansonmt.com/1099-Form-Fillable

🔒 For your protection: please upload everything through Canopy or the website.

Do not send PII by text or email.

If the task isn’t visible in your portal, we’ll activate it for you.

Let Swanson Agency Handle the Filing

Once you submit your info, we’ll:

• Review for accuracy

• Determine which forms are needed

• Prepare and e-file with the IRS

• Deliver recipient copies

• Maintain secure digital records

Montana Roots. Future Focused.

Clean, compliant, and done right — so you don’t have to think about it.