Keeping Your Business Audit-Proof

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Keeping your Business Audit-Proof Starts with Good Habits

1099-NEC

A quick note on an important 2026 change that affects how you document contractor payments.

For calendar year 2026, the federal reporting threshold for Form 1099‑NEC increases from $600 to $2,000. While this means fewer required 1099s for smaller payments, we still recommend issuing a 1099 for every payment to an independent contractor, regardless of amount.

The reason is simple: issuing 1099s make these expenses audit proof.

To stay well protected, we suggest:

  • Issuing 1099s for all contractor payments, even under the new $2,000 limit

  • Keeping vendor W‑9s on file before making payments

  • Letting ABL&Co.’s team handle 1099 preparation and filing so nothing is missed

If you’d like us to review your contractor list or walk through how this change affects your specific situation, just let us know—we’re happy to help.