5 IRS Forms to Watch Out For at Year-End

As the calendar flips to December, small business owners across Richmond, Hopewell, Colonial Heights, and Petersburg have a lot on their plates—year-end planning, final invoices, employee bonuses, and yes… tax paperwork.

While taxes may not be your favorite part of running a business, getting ahead of the necessary IRS forms can save you from penalties, confusion, or worse—an audit. At Sqeaky Clean Books, we make sure our clients know what to file and when, so tax season doesn’t feel like a scramble.

Here are 5 key IRS forms every business should watch out for at year-end—and what you need to know about each one.

✅ 1. Form W-2 – Wage and Tax Statement

Who Needs It: Businesses with employees (not contractors)

Why It Matters: The W-2 reports an employee’s total wages and tax withholdings for the year. It must be sent to each employee and filed with the Social Security Administration (SSA).

Due Dates:

• Employees must receive their W-2s by January 31

• SSA copies also due January 31

Common Mistakes:

• Incorrect SSNs or names

• Missing fringe benefits (like employer-paid health premiums)

• Forgetting to include year-end bonuses

At Sqeaky Clean Books, we help you run year-end payroll and generate accurate W-2s that reflect your records perfectly.

✅ 2. Form 1099-NEC – Nonemployee Compensation

Who Needs It: Businesses that paid contractors, freelancers, or vendors $600 or more

Why It Matters: If you’ve paid a non-employee for services, the IRS requires you to report that payment via Form 1099-NEC.

Due Dates:

• Must be sent to contractors by January 31

• Filed with the IRS by January 31

What You’ll Need:

• Completed W-9 forms from each contractor

• Total amount paid

• Business EINs or SSNs

Important Note: Payments via credit card or PayPal are reported by those platforms via Form 1099-K. You’re only responsible for cash, check, or direct deposit payments.

Need help? We manage 1099 processing and e-filing for clients to avoid last-minute errors.

✅ 3. Form 941 – Employer’s Quarterly Federal Tax Return

Who Needs It: Any business with employees

Why It Matters: This form reports federal income tax withheld, Social Security, and Medicare tax from employee wages. While it’s filed quarterly, the Q4 version is critical to ensure year-end totals align with W-2s.

Due Date: January 31 for Q4

Tips for Accuracy:

• Make sure payroll software matches 941 entries

• Verify that fringe benefits and bonuses are included

• Double-check totals against final payroll summary

Sqeaky Clean Books reviews your Q4 payroll data and reconciles it to your 941 filing for full accuracy.

✅ 4. Form 940 – Employer’s Annual Federal Unemployment (FUTA) Tax Return

Who Needs It: Most businesses with employees

Why It Matters: This form reports federal unemployment taxes paid on the first $7,000 of employee wages.

Due Date: January 31

FUTA Tax Rate: Typically 6.0%, but many employers receive a 5.4% credit if they pay state unemployment taxes on time, reducing the net rate to 0.6%.

Make sure you’ve paid and reported both your federal and state unemployment taxes accurately.

✅ 5. Form 1098-C, 1095, or 1120-S (Industry-Specific Forms)

Depending on your business structure or benefits offered, you may also need to file:

• 1095-C (if you offer health insurance to employees)

• 1098-C (for donated vehicles or property)

• 1120-S or 1065 (if you’re an S-Corp or Partnership)

These forms can have different due dates and filing requirements—especially if you’re distributing K-1s to owners or shareholders.

If you’re unsure which applies to you, Sqeaky Clean Books partners with your CPA to clarify and handle these filings as needed.

✅ Bonus Tip: Use This IRS Filing Checklist

Here’s a quick summary of forms, deadlines, and who needs them:

✅ Why Staying Ahead Matters

Failing to file these forms accurately or on time can lead to:

• IRS fines and interest

• Delays in employee tax refunds

• Unhappy contractors or vendors

• Possible audits

At Sqeaky Clean Books, we don’t just manage your bookkeeping—we proactively handle year-end form prep, compliance checks, and coordination with your tax professional.

🧠 Final Thought

IRS forms can be intimidating—but with the right team and a solid process, year-end compliance becomes just another task you’ve mastered.

Let us help you complete the year with confidence. Reach out today and let Sqeaky Clean Books make your tax season a breeze—not a burden.