The $600 reporting threshold has been part of the information-reporting landscape for decades — but where did it actually come from, and why did it stay frozen in time for so long?

In this episode of Information Return Intelligence, Jason Dinesen digs into the history of the $600 threshold just as it prepares to disappear. Starting in 2026, the long-standing $600 amount under IRC §6041 will be replaced by a $2,000 threshold, indexed for inflation — a change finalized in 2025 legislation.

Jason walks listeners through more than a century of tax history, explaining:

• Why the IRS could never adjust the $600 threshold on its own
• How information reporting didn’t even exist in the original 1913 income tax law
• When information reporting was first introduced (and at what dollar amount)
• How the threshold moved up and down throughout the 1930s and 1940s
• Why 1954 is the key year for modern information reporting — even though the $600 figure predates it
• Fun historical side notes on early 1099 forms, including the rise, fall, and resurrection of Form 1099-NEC

If you’ve ever wondered why $600 became the magic number — or want solid historical context as we move into a new era of reporting thresholds — this episode connects the dots.

Key Takeaway:
The $600 threshold wasn’t arbitrary — but it also wasn’t inflation-proof. Its replacement marks one of the most meaningful structural changes to information reporting in decades.

In this episode of Information Return Intelligence, Jason Dinesen goes back to one of the most fundamental—and most commonly misunderstood—questions in information reporting: how do you know when you’ve crossed the 1099 reporting threshold?

With the familiar $600 threshold increasing to $2,000 for many payments starting in 2026, understanding how amounts are counted is more important than ever.

Key topics covered:

• What “Crossing the Threshold” Really Means
  • Reporting is based on the cash method and the calendar year.
  • The trigger is what you actually paid, not what was invoiced.
• Cash Method Explained (In Plain English)
  • Checks written during the year count—even if the recipient cashes them later.
  • Payments are counted in the year the money leaves your hands.
• Calendar Year vs. Your Tax Return
  • 1099 reporting always follows January 1–December 31.
  • Your organization’s fiscal year or accounting method does not control 1099 reporting.
  • As a result, the amount reported on a 1099 may differ from the deduction shown on your tax return—especially for accrual-method taxpayers.
• Practical Example Walkthrough
  • An invoice received in December but paid in January belongs on the following year’s 1099.
  • The same logic applies to year-end invoices paid after December 31.
  • This timing difference affects both:
    • Whether the reporting threshold is met, and
    • What dollar amount ultimately appears on the 1099.

Bottom line:

When determining whether you’ve crossed the $600 threshold (or $2,000 in 2026), and what amount to report:

• Think cash, not invoices.
• Think calendar year, not fiscal year.
• Don’t assume your tax return and your 1099 totals will match—because they often won’t.

🎧 Join us again next week for another episode of Information Return Intelligence.

In this week’s What’s New episode of Information Return Intelligence, Jason Dinesen provides a concise mid-January update as the 1099 filing season gets underway. With electronic filing officially open and few last-minute surprises, this episode focuses on the key system and compliance issues filers should be aware of right now.

Key topics covered:

• 1099 e-Filing is Open
  • Electronic filing opened January 6.
  • Both FIRE and IRIS systems are live for the season.
• IRIS Expansion: Form 1042 Now Supported
  • IRIS can now accept Form 1042 (summary form) for the first time.
  • In prior years, IRIS could not accommodate this form.
• 1099-DA (Digital Asset Reporting)
  • If you are required to file Form 1099-DA, it must be submitted through IRIS only.
  • FIRE does not accept this form.
  • This typically applies only to certain brokerages and digital asset platforms.
• Important Reminder on Form 1042 (No “S”)
  • Form 1042 is subject to the e-file mandate.
  • It does not go through IRIS or FIRE.
  • Instead, it must be e-filed through the IRS MF (Mainframe) system.
  • Not all filing vendors support MF, so filers should confirm capabilities now.
  • No IRS paper-filing exception has been issued yet for 2025 (as of recording), though the form is not due until March 15.
• Publication 1099 (2026 Version) Signals FIRE’s Future
  • The IRS reiterates its plan to shut down the FIRE system by the end of 2026.
  • FIRE is mentioned only three times in the publication—all in the context of its shutdown.
  • IRIS is referenced 26 times, underscoring the IRS’s clear long-term direction.

Bottom line:

This is a relatively quiet “What’s New” period—which is good news. Filers can focus on getting forms submitted while keeping an eye on:

• Form 1042 e-filing logistics, and
• The ongoing transition away from FIRE toward IRIS.

🎧 Tune in next week for the next episode of Information Return Intelligence.