Who files a 1099-NEC form?
The company or business owner—for example, Curri—that makes payments to the service provider or contractor for their services is required to report those payments to the IRS and also send a copy to the service provider or contractor.
Many businesses that have previously filed the 1099-MISC to report non-employee compensation in Box 7 will use the 1099-NEC starting this tax year.
Who receives a 1099-NEC form?
The service provider or contractor receives a copy for their records and the IRS also gets a copy—either through electronic filing or paper mailing. Typically, companies are only required to send 1099-NECs to service providers or contractors who’ve been paid $600 or more in a calendar year and are based in the US or US taxpayers.
The Form 1099-NEC must be filed with the IRS by Monday, January 31, 2022. This due date applies to both paper and electronically filed returns.
State filing considerations for 1099-NEC
Form 1099-NEC will not be included in the IRS 1099 Combined Federal/State Filing Program. This means that the IRS will not forward information returns from the 1099-NEC to participating states, so businesses who file the 1099-NEC may need to directly report this information with states. We recommend consulting a tax advisor to determine your state filing requirements.