IRS
IRS Form 1099-NEC (nonemployee compensation)
An information return reporting nonemployee compensation (payments to independent contractors) made in the course of a trade or business.
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- What it is
- An information return reporting nonemployee compensation (payments to independent contractors) made in the course of a trade or business.
- Who must file
- A business that paid an unincorporated contractor for services. The reporting threshold is $600 for payments made through 2025; under the One Big Beautiful Bill the threshold rises to $2,000 for payments made after December 31, 2025 (tax year 2026 onward, inflation-indexed thereafter).
- Deadline
- January 31 — to BOTH the recipient and the IRS (moves to the next business day if January 31 falls on a weekend or holiday).
- Penalty if missed
- Per-form penalties scale with how late you file. For 2025 small-business returns: $60 (filed within 30 days), $130 (by August 1), and $330 (after August 1 or not filed) per form; intentional disregard is higher with no cap. Penalties apply separately for the IRS copy (§6721) and the payee copy (§6722). Exact 2026 inflation-adjusted figures may differ — confirm on the IRS penalties page.
- Notes
- 2026 CHANGE: the $600 reporting threshold rises to $2,000 for payments made after Dec 31, 2025.
- Official source
- IRS — Instructions for Forms 1099-MISC and 1099-NEC — verified as of 2026-06-22