tried and proven ways to get your irs forms to recipients efficiently and before deadlines.
The 1099-NEC form is one of the most important information returns in the 1099 series. If you are an employer, you must submit the 1099-NEC form to each independent contractor (self-employed and vendors) you have paid to least $600 in a tax year.
Although the 1099-nec form is a relatively easy form to complete and prepare, there are a couple of things that take time:
- verify the suppliers’ cans
- fill out the prepared and validated forms.
verifying cans from suppliers prior to filing will avoid tin discrepancies with the irs. will ensure that you reduce the risk of file rejection. Let’s not forget that every incorrect can you report will send you back with a b notice and even IRS penalties.
It is best to check the supplier’s cans even before onboarding the supplier to ensure that all required tax details are in place and valid.
We recommend using the real-time can comparison tool offered by tax1099 to verify up to 100,000+ cans in a minute. get results in 30 seconds or less. all you need is the provider can and the legal name to get the results in real time.
start matching tin
once you have finished preparing and validating your reports, the next step would be to file the 1099-nec forms.
As you may know, there are two ways to do this.
You can choose to e-file the 1099-NEC online or mail the forms to the IRS, also known as paper filing.
The following will briefly discuss the substance of the 1099-nec form and quickly guide you through the 1099-nec filing methods. you can choose to skip to the key points if you are in a hurry.
then, let’s get to it.
quick links
- form 1099-nec: quick facts
- if filing on paper
- if you file electronically
- e-file form 1099-nec in 3 easy steps with tax1099
form 1099-nec: brief data
- Form 1099-NEC was reintroduced by the IRS to separate non-employee compensation reporting from Form 1099-MISC miscellaneous information reporting.
- The payer must send the 1099-nec form to the recipient and the IRS before January 31 of the tax year.
- Form 1099-nec deals exclusively with payments made to independent contractors during a fiscal year in the course of business.
- If you paid at least $600 or more to an independent contractor, freelancer, vendor, or gig worker in this tax year, you must report those payments using Form 1099 -nec
- form 1099-nec also requires the seller’s tin and legal name to allow the irs to verify payments made by the payer and income received by the payee.
- form 1099-nec fundamentally addresses employee misclassification and reporting inconsistencies on form 1099-misc.
The addition of 1099-nec reporting will allow businesses to maintain a complete record of independent contractor payments and enable entity-contractor compliance. learn more
if you file the tax return on paper
If you’re going to mail your 1099 returns this year, think again. The IRS has lowered the threshold for filing paper 1099s to just 100 forms (combining all types of forms).
This means that if you have 25 1099-NECs, 50 1099-MISCs, and 30 1099-Ks to file by mail, the IRS may reject them.
In such a case, you can mail only some of these forms to the IRS and e-file the rest of the forms through IRS-authorized efile enablers, such as tax1099.
Note: You can request your 1099 forms online here if you file by mail.
Use the table below to file your 1099-NEC forms by mail with the IRS.
Note: If your legal residence or principal place of business is outside the United States, file with the Internal Revenue Service, Austin Filing Processing Center, P.O. box 149213, austin, tx 78714
electronic filing now
if you file an electronic return
The IRS encourages taxpayers to choose electronic filing methods to submit 1099 forms due to the ongoing virus outbreak. Provisions of the First Taxpayer Act of 2019, enacted on July 1, 2019, allow the IRS to review and implement further restrictions on the paper filing process to expedite the process and provide a convenient experience for taxpayers.
If you have more than 100 1099 forms to file electronically, don’t worry. you can simply go to tax1099 and file your 1099-nec forms electronically in a minute. Follow tax1099’s 3-step process to securely prepare, validate, and e-file your 1099 forms. But before we get to that, sign up and create your 1099 tax-free account to get started.
electronic filing of form 1099-nec in 3 easy steps with tax1099
Step 1: Import your data with tax information.
Choose from any of the available accounting and data management integrations to import your tax-related data and let tax1099’s powerful platform properly fill out electronic returns. you can choose to fill in the forms manually.
Consider bulk tax1099 e-filing w-9 solutions to speed up your 1099-nec reporting process.
step 2: validate your reports
Validate your supplier’s cans with our real-time can comparison tool and review supplier payment information, recipient address, tax withholdings, and other details to ensure forms display accurate information.
step 3: electronic file!
At this point, you can choose to schedule your 1099 returns with the tax1099 scheduling tool or manually file before the due date.
practical, simple and compatible: that’s what tax1099 is all about.
Get started e-filing 1099-nec for free