If your business pays an accountant or accounting firm for tax preparation, bookkeeping, or other professional services, you may be wondering whether you need to issue them a Form 1099.
The answer depends on several factors, including how much you paid the accounting firm, how you made the payments, and how the accounting firm is classified for federal tax purposes.
Generally, you must issue Form 1099-NEC to an accounting firm if you paid it $2,000 or more for business-related services during 2026, unless the firm qualifies for an exemption.
However, many accounting firms are organized as corporations and are therefore exempt from the usual Form 1099-NEC reporting requirements.
Here’s how to determine whether you need to send your accountant a 1099.
Do You Have to Send a 1099 to an Accounting Firm?
Under IRS rules, businesses generally must report qualifying payments to nonemployees for services performed in the course of operating a trade or business.
Accounting services fall into this category and can include:
- Business tax return preparation
- Bookkeeping and payroll accounting
- Financial statement preparation
- Tax planning and consulting
- Audit and assurance services
- Outsourced accounting and controller services
For payments made during the 2026 calendar year, the reporting threshold is $2,000. This is an increase from the $600 threshold that applied to payments made before 2026.
However, reaching the reporting threshold does not automatically mean that you must issue a 1099.
The accounting firm’s business structure matters.
Do You Issue a 1099 to an Accounting Firm That Is a Corporation?
Generally, no.
The IRS typically exempts payments made to C corporations and S corporations from Form 1099-NEC reporting.
For example, suppose your company pays an accounting firm organized as an S corporation $15,000 for tax preparation and consulting services.
Even though the payments exceed the $2,000 threshold, your business generally does not need to issue Form 1099-NEC because the accounting firm is taxed as a corporation.
This exemption applies to ordinary accounting services provided by both C corporations and S corporations.
Important exception: Certain payments to corporations, such as payments for legal services, remain subject to information reporting. However, these exceptions generally do not apply to ordinary accounting and tax preparation services.
Do You Send a 1099 to an Accounting Firm That Is an LLC?
Possibly. An accounting firm organized as a limited liability company (LLC) is not automatically exempt from receiving a Form 1099.
The answer depends on how the LLC is treated for federal income tax purposes.
An LLC may be classified as a:
- Single-member disregarded entity: Generally subject to 1099 reporting when the payment requirements are met.
- Partnership: Generally subject to 1099 reporting when the payment requirements are met.
- S corporation: Generally exempt from Form 1099-NEC reporting.
- C corporation: Generally exempt from Form 1099-NEC reporting.
For example, suppose you pay a single-member LLC $4,000 for bookkeeping services. If the LLC is disregarded for federal income tax purposes and its owner is an individual, you generally must issue Form 1099-NEC.
However, if that same LLC elected to be taxed as an S corporation, you generally would not be required to issue the form.
The important distinction is the firm’s federal tax classification, not whether its business name includes LLC.
What About Accounting Firms Organized as Partnerships?
Accounting firms organized as partnerships, including limited liability partnerships (LLPs) treated as partnerships for federal tax purposes, are generally subject to the usual Form 1099-NEC reporting requirements.
This is particularly relevant when dealing with large accounting firms.
Many national accounting firms operate through partnerships or other complex legal structures. Their size, reputation, or number of employees does not automatically exempt them from 1099 reporting.
Whether you are paying a local accounting practice or a firm affiliated with Deloitte, PwC, EY, or KPMG, you should verify the federal tax classification of the particular entity receiving payment.
Which Accounting Firms Need a 1099?
The following table summarizes the general rules for qualifying business-service payments of at least $2,000 made during 2026. This definitely applies to big 4 accounting firms.
| Accounting firm structure | Form 1099-NEC required? |
|---|---|
| Sole proprietor | Generally yes |
| Single-member LLC taxed as a disregarded entity owned by an individual | Generally yes |
| Partnership | Generally yes |
| LLC taxed as a partnership | Generally yes |
| Limited liability partnership (LLP) taxed as a partnership | Generally yes |
| S corporation | Generally no |
| C corporation | Generally no |
| LLC taxed as an S or C corporation | Generally no |
These rules assume the payments were made directly through a reportable payment method and that no other exception applies.
How Do You Know Whether Your Accounting Firm Needs a 1099?
The easiest way to determine whether your accounting firm is subject to Form 1099 reporting is to request a completed Form W-9, Request for Taxpayer Identification Number and Certification.
A Form W-9 provides information about the accounting firm’s federal tax classification and taxpayer identification number.
When reviewing the W-9, pay particular attention to the classification selected in Line 3a.
If the accounting firm identifies itself as an S corporation or C corporation, you generally will not need to issue Form 1099-NEC for ordinary accounting services.
If the firm is classified as a partnership or the payee is an individual operating as a sole proprietor, Form 1099-NEC may be required.
For a disregarded entity, the owner’s federal tax classification is relevant.
Businesses should request Form W-9 before making payments whenever possible, rather than waiting until the end of the year.
You can obtain the form directly from the IRS website.
Do You Send a 1099 to an Accounting Firm If You Paid by Credit Card?
Generally, no.
Payments made through credit cards, debit cards, and qualifying third-party payment networks are generally excluded from Form 1099-NEC reporting by the business making the payment.
Instead, applicable reporting is handled by the payment settlement entity through Form 1099-K.
For example, suppose you paid an accounting firm $5,000 through a credit card payment processor during 2026.
Even if the accounting firm is a partnership, you generally would not issue Form 1099-NEC for those credit card payments.
However, payments made directly through methods such as checks, bank transfers, or ACH may be subject to Form 1099-NEC reporting.
If you use multiple payment methods, you should separate payments processed through qualifying payment networks from payments you made directly.
Do You Need to Send a 1099 to Your CPA for Tax Preparation?
It depends on whether the tax preparation services were purchased for business or personal purposes.
Business tax preparation
Suppose your company pays an independent CPA $3,000 to prepare its business tax return.
If the CPA operates as a sole proprietor and you paid by check, you generally must issue Form 1099-NEC.
However, if the CPA practices through an S corporation, you generally would not need to issue the form.
Personal tax preparation
Suppose you pay an accountant $800 to prepare your personal income tax return.
You generally do not have to issue Form 1099-NEC because the payment was personal rather than made in the course of operating a trade or business.
Self-employed taxpayers whose tax preparation invoices include both business and personal services may need to distinguish between the two types of expenses.
The IRS does not generally require information reporting for purely personal payments.
When Do You Send a 1099 to an Accounting Firm?
If your accounting firm is subject to Form 1099-NEC reporting, you must generally provide the recipient with a copy of the form and file it with the IRS by January 31 following the year of payment.
When that date falls on a weekend or legal holiday, the deadline generally moves to the next business day.
For payments made during 2026, the Form 1099-NEC deadline is February 1, 2027, because January 31 falls on a Sunday.
Businesses required to file 10 or more information returns in aggregate generally must file them electronically.
The IRS offers its Information Returns Intake System (IRIS), which allows businesses to electronically file qualifying information returns.
What Happens If You Don’t Issue a Required 1099 to an Accounting Firm?
Failing to issue a required Form 1099-NEC can expose a business to IRS information return penalties.
The IRS may impose penalties for:
- Failing to file a required information return.
- Filing the form after the applicable deadline.
- Providing incorrect or incomplete taxpayer information.
- Failing to furnish a required copy to the recipient.
The penalties depend on the circumstances, including how late the form is filed and whether the failure was intentional.
Importantly, an accounting firm is generally required to report its taxable income whether or not it receives a Form 1099.
The fact that your accountant does not request a 1099 does not eliminate your business’s filing obligations.
Frequently Asked Questions About Sending 1099s to Accounting Firms
Do you 1099 accounting firms?
Yes, in certain situations. Accounting firms operating as sole proprietorships or partnerships generally must receive Form 1099-NEC when qualifying direct business payments reach $2,000 during 2026. Firms classified as C corporations or S corporations are generally exempt.
Do you issue a 1099 to an accounting firm for bookkeeping?
Generally, yes, if the accounting firm is a nonexempt payee and you paid it at least $2,000 for bookkeeping services during 2026 through a reportable payment method.
Do you send a 1099 to an accounting firm that is incorporated?
Generally, no. Accounting firms taxed as C corporations or S corporations are typically exempt from Form 1099-NEC reporting for ordinary accounting services.
Do you send a 1099 to an accounting firm if you paid less than $2,000?
Generally, no. For payments made during 2026, the ordinary Form 1099-NEC reporting threshold is $2,000 per payee for the calendar year. Certain exceptions, such as reporting payments subject to backup withholding, may apply regardless of the amount.
Do you need to issue a 1099 to a CPA who works alone?
Generally, yes, if the CPA operates as a sole proprietor and receives at least $2,000 in qualifying business payments during 2026. However, you should verify the CPA’s tax classification using Form W-9.
Can an accounting firm refuse to provide a W-9?
An accounting firm may be reluctant to provide a W-9, but businesses should obtain the required taxpayer information when making reportable payments. Failure to furnish the necessary taxpayer identification information may result in backup withholding requirements.
Final Thoughts: Should You Send Your Accounting Firm a 1099?
Whether you must send an accounting firm a 1099 depends primarily on its federal tax classification, the amount paid, the nature of the services, and the method of payment.
For 2026, the general Form 1099-NEC reporting threshold increased to $2,000, which means some businesses that previously had to issue forms for smaller accounting fees may no longer have to do so.
However, the exemption for C corporations and S corporations remains particularly important.
The simplest way to avoid confusion is to obtain a completed Form W-9 from your accounting firm, review its tax classification, and maintain accurate records of payments throughout the year.
If you are uncertain whether a particular payment requires reporting, consult a qualified tax professional before the filing deadline.