1099‑NEC readiness
Who needs a 1099‑NEC, key deadlines, and how to avoid corrections.
Threshold & coverage
- $600+ in nonemployee compensation during the calendar year.
- Exemptions: corporations generally (C/S) except attorney fees and certain medical payments.
- Collect W‑9s to capture correct TIN/legal name for matching.
Timeline (typical)
- Jan 31: furnish Copy B to payees and e‑file with IRS (or state, if required).
- Use TCC or a filing provider to e‑file; verify state requirements (e.g., CF/SF).
Avoiding errors
- Match totals to GL/disbursements by legal entity (not “doing‑business‑as”).
- Track refunds/credit memos; report net paid amounts.
- Validate TIN/Name against IRS TIN Matching if available.