1099-NEC due date coming up!
Yoseph Shomer, CPA
CPA for all your business tax needs | Professional. Patient. Personal.
The due date to file form 1099-NEC (Nonemployee Compensation) is January 31st.
What is form 1099-NEC?
This is a form issued by a business to independent contractors and self-employed individuals who performed services for a business and received nonemployee compensation of $600 or more in 2022.
The form is also submitted to the IRS to allow the taxing agency to reconcile the amount of income the taxpayer should be reporting.
Some important points regarding the 1099-NEC:
? The form is only meant for payments made in connection to conducting business; personal payments as well as payments to Corporations do not need to be reported.
? The 1099-NEC does not need to be issued for payments made with a credit card or for third-party network transactions, such as PayPal.
? Good practice is to collect information from contractors before a payment is issued by requesting the contractor to complete Form W-9 which includes legal name, address, and social security number.
Now is a great time to begin preparing the information for these forms for your accountant, as there is a short window of time to prepare and complete these forms (the due date is the end of January.)
Have a question about this or another tax-related matter? Feel free to reach out!