IRS Introduces the New Form 1099-NEC
The IRS has introduced a new Form 1099-NEC, Nonemployee Compensation. It's a sibling to Form 1099-MISC and replaces it for certain purposes. You must file it for each person in the course of your business to whom you have paid at least $600 during the year for the following: Services performed by someone who is not your employee (including parts and materials) (box 1). Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish (box 1). Payments to an attorney (box 1). The IRS has provided additional guidance about what exactly is nonemployee compensation. If the situation meets all four of the following cases, it's an NEC situation: You made the payment to someone who is not your employee. You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations). You made the payment to an individual, partnership, estate or, in some cases, a corporation. You made payments to the payee of at least $600 during the year. A partial list of payments that belong on a Form 1099-NEC includes the following: Professional service fees, such as fees to attorneys...