Form 1099 NEC - Deadline and Filing Requirements

Updated on January 27, 2023 - 10:30 AM by Admin, TaxBandits

Starting with the tax year 2020, the Form 1099-NEC was returned to the IRS line-up. This means all non-employee compensation must be reported using this form, rather than the 1099-MISC

Non-employee compensation refers to the payments made to independent contractors and vendors, these payments must be reported to the IRS. If your business hired independent contractors and/or vendors and paid them more than $600 for their services, you are required to file a Form 1099-NEC with the IRS and furnish them with a copy.

In this article, we cover the following topics:

1. When is 1099 NEC due?

Form 1099 NEC must be filed by January 31, 2023, for the tax year 2022 irrespective of filing methods ( paper or electronic filing). The deadline to send the Recipient is also due by January 31st

Recipient copy Paper filing E-filing
January 31, 2023

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January 31, 2023

IRS Recommend to file 1099 NEC electronically for quick processing and instant approval

January 31, 2023

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Want to know the 1099-NEC State Filing Deadline?

Most of the states have January 31st as the filing deadline. But, the deadline to file will vary for some states.
Click here to know more about the state filing deadline.

Note: If the filing deadline falls on a Saturday, Sunday, or legal holiday, the deadline automatically becomes the next business day.

2. What are the Filing Requirements for Form 1099 NEC?

If your business hired an independent contractor, freelance worker, or vendor during the tax year and paid them $600 or more for their services, your business is required to report this on Form 1099-NEC. When filing this form, please note that your business is considered the “payer” and the independent contractor/vendor is the “recipient”.

Form 1099-NEC requires the following information:

  • Payer (your business) name, address, and TIN
  • Recipient (independent contractor) name, address, and TIN
  • Total Nonemployee compensation
  • Federal and state income tax withheld

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3. How to file 1099 NEC electronically?

When it comes to e-filing, choosing an IRS Authorized E-file provider like TaxBandits, is easier than going it alone and paper filing your forms. Simply get started by creating a free account with TaxBandits and follow the steps below to file your 1099-NEC electronically.

  • Step 1:Add Business and Recipient Details
  • Step 2:Enter Form Information
  • Step 3:Review Form Summary and make any corrections if required
  • Step 4: Transmit the Form to the IRS

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4. Why E-file 1099 NEC with TaxBandits?

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5. What are the 1099-NEC late filing penalties?

If you fail to file 1099 NEC, you are subject to late filing penalties, depending on how late you file it.

  • Filing 1099-NEC after the deadline, but within 30 days of the original deadline - $50/per return.
  • Filing between 31 days late and August 1 - $120/per return.
  • Filing after August 1 or not filing at all - $280/per return.
  • Not filing the return intentionally - $550/per return.

Learn More about 1099 NEC Penalties