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Form 1099 Filing Guide for Businesses

Guide for businesses on when and how to issue IRS Form 1099-NEC and 1099-MISC to independent contractors and other payees.

Instructions

Instructions

  • Who Gets a 1099-NEC?: Any non-employee (individual, partnership, LLC) paid $600+ for services during the tax year
  • Who Gets a 1099-MISC?: Payments of $600+ for rent, prizes, legal settlements, or $10+ in royalties
  • Collect W-9s: Get a W-9 from every contractor BEFORE making the first payment
  • Deadlines: January 31 — send 1099-NEC to recipients AND file with IRS. March 31 — e-file 1099-MISC with IRS
  • Filing Methods: E-file through IRS FIRE system (required if filing 10+ forms), or use tax preparation software
  • Penalties: $60-$310 per form for late filing, depending on how late. Intentional disregard: $630 per form
  • State Filing: Many states require separate 1099 filing — check your state's requirements
    • Note: Do NOT issue a 1099 to C-Corporations (with limited exceptions for legal and medical payments). S-Corps also receive 1099s for most payment types.