What is a Form 1099-NEC?
The 1099-NEC is a form used to report nonemployee compensation (NEC). The IRS defines NEC as payments for business services (including parts and materials) to someone who is not your employee.
Who requires a Form 1099-NEC?
Each individual or entity (LLC, partnership or estate) your business paid more than $600 to for business services or materials. However, generally, payments to a corporation (C corp or S corp) do not have to be reported on Form 1099-NEC.
What information you need to file a Form 1099-NEC?
To file Form 1099-NEC you will need the recipient's name, address, tax identification number (EIN or SSN) and amount paid during the year. When you hire someone for business services you should request that they complete Form W-9, which will have the information necessary to file Form 1099-NEC.
When is the due date for filing Form 1099-NEC?
The due date for filling Form 1099-NEC with the IRS is January 31 of the following year. If this date does not fall on a business day, the due date will be the next business day.
We hope this information was useful. What questions do you still have? What did you hope to learn that you didn’t? Was anything more confusing than clarifying? What would have made this information more helpful? Please send questions or thoughts directly to the author, Anton Shoetan, at cpa@taxceed.com. Thanks!
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