2021 – 06/23 Businesses that pay nonemployee compensation of $600 or more must report these payments to the IRS. They do this using Form 1099-NEC, Nonemployee Compensation. Generally, payers must file Form 1099-NEC by January 31. In some cases, nonemployee compensation may be subject to backup withholding. This must be done if a person or business hasn’t provided a Taxpayer Identification Number (TIN) or the IRS notifies the payer that the payee provided a TIN that doesn’t match the name in IRS records. A TIN can be one of the following numbers: Social Security; Employer identification or individual taxpayer identification. For more information, contact us or visit the IRS here:
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