Form detail
IRS Form 1099-NEC
Nonemployee Compensation
Country
United States
Revision year
2024
Methods
paper, efile
Updated
2026-05-20
Nonemployee Compensation
Information return for payments of $600 or more to nonemployees for services rendered.
Who must file: Businesses that paid $600 or more during the year to independent contractors, attorneys, or other service providers who are not employees.
Practical overview
Form 1099-NEC was reintroduced in 2020 to separate nonemployee compensation from miscellaneous income previously reported on 1099-MISC. The January 31 deadline applies to both copies to the recipient and to the IRS, which is one of the earliest information-return deadlines and a common source of penalties. Backup withholding under Section 3406 is required if the payee has not provided a valid TIN.
Practical steps
- Collect a Form W-9 from every contractor before payment.
- Track all payments to each contractor by calendar year.
- Issue 1099-NEC by January 31 for both recipient and IRS copies.
- Apply backup withholding when a valid TIN is not on file.
- File electronically via FIRE if filing 10 or more returns.
Due-date notes
January 31 to both recipient and IRS.
Timing: January 31
Penalty snapshot
Penalties range from $60 to $310 per form (2024) depending on lateness, up to $3,783,000 per filer per year; intentional disregard penalty is at least $630 per form with no maximum.
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
This entry cites
- FormIRS W-9
- FormIRS 1099-MISC
Cited by
- FormIRS 1099-MISC
- FormIRS W-9
- FormIRS Schedule C (Form 1040)
Primary sources
- About Form 1099-NECVerified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.