Is your business prepared for the first major tax deadline of 2026? This year, an important compliance date lands on an unexpected day. Because January 31 falls on a Saturday, the IRS deadline for several critical employment and contractor tax forms moves to the next business day. That day is Monday, February 2, 2026, also known as Groundhog Day.
Missing this deadline can lead to penalties, filing corrections, and unnecessary stress. Here is what business owners need to know to stay compliant and avoid issues.
Employee Forms Due by February 2, 2026
Employers must both furnish forms to employees and file them with the federal government by February 2.
Form W-2: Wage and Tax Statement
Form W-2 reports wages paid and taxes withheld for each employee during 2025. Employers must provide a copy to employees and file the form with the Social Security Administration.
The IRS emphasizes the importance of accuracy because Social Security and Medicare benefits are calculated using W-2 information. Errors or late filings can cause long-term issues for employees and may result in penalties for employers.
Form W-3: Transmittal of Wage and Tax Statements
If your business files W-2s, you must also submit Form W-3. This form summarizes all W-2 information and transmits Copy A of the W-2s to the Social Security Administration.
The totals reported on Form W-3 should match your annual employment tax filings, such as Forms 941, 943, 944, or Schedule H.
Independent Contractor Forms: 1099-NEC
The February 2 deadline also applies to Form 1099-NEC, Nonemployee Compensation.
You are generally required to file a 1099-NEC if all of the following apply:
- The payment was made to someone who is not your employee
- The payment was for services related to your trade or business
- The recipient was an individual, partnership, estate, or certain corporations
- Total payments to the recipient were at least $600 during the year
Some business owners have heard about changes under the One Big Beautiful Bill Act, signed into law in 2025. While this legislation increases the 1099-NEC reporting threshold to $2,000, that change applies only to payments made in 2026 and later. Those payments will be reported on 2026 forms filed in early 2027. The threshold will also be adjusted annually for inflation starting in 2027.
Other 1099 Forms to Be Aware Of
Depending on your business activities, you may also need to furnish Form 1099-MISC for certain types of payments, including:
- Rent
- Medical and healthcare payments
- Prizes and awards
- Attorney fees and legal services
The deadline to furnish Forms 1099-MISC to recipients is February 2, 2026.
The deadline to file Forms 1099-MISC with the IRS depends on how you file:
- Paper filing deadline: March 2, 2026
- Electronic filing deadline: March 31, 2026
Understanding “Furnish” vs. “File”
When the IRS requires a form to be “furnished,” it means the form must be delivered to the recipient. This can be done in person, electronically with proper consent, or by first-class mail to the recipient’s last known address.
If you mail W-2s or 1099 forms, they must be postmarked by February 2, 2026 to be considered timely.
Avoid Penalties by Filing on Time
Failing to meet filing deadlines or submitting incorrect information can trigger IRS penalties that increase the longer the issue goes unresolved. Taking the time now to confirm accuracy and deadlines can help you avoid costly mistakes.
Do not let the Groundhog Day deadline cast a shadow over your tax season. If you have questions about W-2s, 1099-NECs, 1099-MISC forms, or filing requirements, the team at Botwinick & Co. can help you stay compliant and prepared.
Frequently Asked Questions
Question: Why is the tax deadline February 2, 2026 instead of January 31?
Answer: January 31 falls on a Saturday in 2026, so the IRS moves the deadline to the next business day, which is Monday, February 2.
Question: Do I need to file both W-2 and W-3 forms?
Answer: Yes. If you file W-2s for employees, you must also file Form W-3 to summarize and transmit the information to the Social Security Administration.
Question: Has the 1099-NEC reporting threshold already increased to $2,000?
Answer: No. The $2,000 threshold applies to payments made in 2026 and later. Payments made in 2025 are still subject to the $600 threshold.
Question: Can I email W-2s or 1099s to recipients?
Answer: Yes, electronic delivery is allowed if the recipient has provided proper consent under IRS guidelines.
Question: What happens if I miss the February 2 deadline?
Answer: Missing the deadline or filing incorrect forms may result in IRS penalties that increase based on how late the filing is. Working with a qualified tax professional can help minimize risk.
