Tax Tip #175

Ralph Loggia • December 26, 2023

1099 Nonemployee Compensation Reporting

Business owners, payments to certain individuals and businesses require a 1099 to be issued and filed with the IRS & in some states. The following are key points to know:


  • Payments of $600 or more to individuals (not employees), partnerships (LLCs & LLPs), physicians and all attorneys are reportable on Form 1099-NEC
  • Payments to corporations are typically not reported (unless to an attorney)
  • The recipient should complete a Form W9 in order to complete Form 1099. The W9 form can be found on the IRS website
  • Due dates: 1099s need to be provided to the recipient by 1/31
  • Penalties: Range from $50 to $270 per return or statement (per 1099)


If you have questions or would like assistance, please reach out to a team member.

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