Generally, payments made to corporations are not reported on this form, but there are some exceptions to this rule. Payments made to an attorney must be reported on this form, irrespective of their corporation status. Employees' business expense reimbursements are not reported on this form. Generally, payments made to employees are reported on Form W-2. Generally, payments made to general contractors are reported in box 1.
Who needs to file Form 1099-NEC?
All businesses that are operating for the purpose of making a gain or profit need to file this form if they meet any of the conditions below. Nonprofit organizations, trusts, cooperatives, federal, state, or local government agencies are also required to report payments.
When is this form filed?
A business is required to file if it:
- Paid at least $600 for services for a trade or business by people not treated as its employee
- Paid at least $600 to an attorney
- Withheld any federal income tax under the backup withholding rules
What is the deadline to file Form 1099-NEC?
The deadline to file this form with the IRS is the end of January if filing on paper or electronically. However, the deadline to provide a recipient copy is at the end of January.
The due date to e-file 1099-NEC is January 31. The due date to furnish the payee statement is also January 31.
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here
for more information on the deadline.
What is the penalty for failure to file Form 1099-NEC?
The IRS imposes heavy penalties if a business fails to file or fails to file the correct information. There is a penalty for not providing recipient copies. The penalty increases with time. So, even if you have not filed your form in time, we encourage you to file as soon as possible.
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here
for more information on penalties.
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