Anton Shoetan, CPA

What is a Form 1099-NEC?


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.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. Taxceed assumes no liability for actions taken in reliance upon the information contained herein.