It’s important to note that the 2025 filing season is still subject to the existing $600 threshold. Forms issued in January 2026 will report payments made during the 2025 tax year. Some business owners may assume the higher threshold applies right away, but the new limit only applies to payments made on or after January 1, 2026. Using the wrong threshold for 2025 could lead to missed filings or potential penalties. Failure to file on time can result in penalties ranging from $60 to $660 per form