Lynda ArtesaniLegal Accountant and Data Migration Specialist at The Proper Trust

We are seeing more and more 1099 forms every year

2 Jul 2024 · 1 min

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In a brief conversational exchange, Speaker A highlights IRS data showing a steady 7% annual increase in aggregate 1099 filings over the past 15 years. They note occasional spikes, most notably the massive surge caused by cost‑basis reporting requirements for securities around 2010‑2011, which generated billions of forms. Looking forward, Speaker A points to a projected dramatic rise in the newly introduced K forms, expected to jump from roughly 2.5 million to 40 million once the related regulations become effective. Speaker B responds with brief remarks, underscoring the ease of filing and the cash‑only nature of the forms. The dialogue emphasizes how seemingly minor regulatory adjustments can lead to substantial increases in tax‑reporting paperwork.

IRS publishes stats every year on number of forms filed of each type or collect— they've collected for each type. The aggregate 1099 volume has been going up pretty consistently at 7% a year going back 15 years. Wow. But you see some jumps, right? They're forecasting the K to go up from, you know, 2.5 to 40 million forms when the regulations go live. Holy cow. Why not?
Because it's easy to use this. Yeah, right. Like, this only carries cash. Yeah.
Yeah. So, so that, that's, that's the newest big jump. It's not quite as big as the jump we had when for the, for, for cost basis reporting on, on sales of securities going back to, you know, 2010, 2011. That one we saw billions of forms created by the cost basis regs. But yeah, I mean, little legal changes you don't think about.