How To Send Form 1099-NEC To IRS?

Nonemployee compensation payments have to be reported on Form 1099-NEC only if they reach $2000 or more for payments made in 2026 and to be reported in 2027. The $2,000 or more threshold is replacing the previous $600 threshold due to OBBBA rules. Backup withholding still requires filing even if the payment is below the normal threshold.

Form 1099-NEC is one of the most important information returns in the 1099 series. If you’re a business payer, someone who makes a payment in the course of running a trade or business, you must send Form 1099-NEC to each independent contractor, freelancer, vendor, or other nonemployees who you’ve paid $2,000 or more in nonemployee compensation in 2026. The payments will be reported in 2027.

While Form 1099-NEC is a relatively quick and easy form to fill out and prepare, there are a couple of things that do take time:

• Verifying vendor TINs and validating the forms
• Sending the forms to the recipient
• Submitting the form through the appropriate IRS filing method

Verifying vendor TINs prior to filing will save you from TIN discrepancies with the IRS by reducing the risk of filing issues. The name and TIN have to match the name and TIN combination in the IRS database. Each incorrect TIN that you report will hit you back with a B-notice and even potential penalties from the IRS if the issue is not corrected.

It’s best to verify the vendor’s TIN when you are in the process of onboarding them. This step ensures that all the required tax details are in place and valid.

We recommend using a real-time TIN Match tool, like the one offered by Tax1099, to verify TINs within a minute. You’ll get the verified results in 30 seconds or less. Adding this step into your Form 1099 filing makes the entire process smoother and less likely to result in IRS name/TIN mismatches.

Once you’re done preparing and validating the tax data, the next step is to file Form 1099-NEC and submit it to the IRS. And there are two 1099-NEC filing methods you can choose from.

You can either choose to eFile 1099-NEC form online or mail the forms to the IRS, also known as paper filing.

Filing Form 1099-NEC

Form 1099-NEC was re-introduced by the IRS to separate the non-employee compensation reporting from the miscellaneous information reporting of Form 1099-MISC. This form exclusively deals with payments made to independent contractors for their services in the course of business. If you’ve paid $2,000 or more in nonemployee compensation to an independent contractor, freelancer, vendor, or gig worker for 2026 payments, reported in 2027, you’re generally required to report those payments on Form 1099-NEC.

The form must be sent to the recipient and the IRS (both paper filing and e-filing) by January 31 of the tax year. The IRS is strict about deadlines, and missing the deadline can trigger late-filing penalties that increase the longer you wait to file.

One caveat to remember with Form 1099-NEC filing is that backup withholding applies. When the vendor or contractor doesn’t provide a valid TIN, you are required to apply backup withholding rules. Report the payment amount as usual, even if the payment is below the normal Form 1099-NEC threshold, and withhold 24% of the payment amount.

Direct sales of consumer products for resale may also be reported in 1099-NEC. If the total resale amount is $5,000 or more, you must check Box 2 of Form 1099-NEC. Most corporations are exempt from Form 1099-NEC reporting, but legal-service payments can still require reporting, so collect Form W-9 before payment and confirm the vendor’s entity type before you file.

Form 1099-NEC was created to address the employee misclassification and reporting inconsistencies of Form 1099-MISC. Incorporating 1099-NEC reporting will allow businesses to maintain a comprehensive record of independent contractor payments and enable entity-contractor compliance.

Now, let’s talk about the two 1099-NEC filing methods, paper filing and e-filing, in more detail.

If You’re Paper Filing Form 1099-NEC

Before mailing physical copies of 1099-NEC returns to the IRS, first confirm whether paper filing is allowed. You are required to eFile if you are filing 10 or more than 10 information returns during the year. This 10-return threshold is calculated by aggregating information returns across different form types.

This means if you have, for example, 4 Forms 1099-NEC, 3 Forms 1099-MISC, and 3 Forms 1099-K, you have 10 total information returns and must e-file. In such a case, since the total forms across all form type meet the 10-or-more aggregated information-return threshold, you need to e-file the applicable returns unless you have an approved IRS hardship waiver. Never split filings simply to avoid the e-file requirement.

If you still want to paper file, you can still do so by use official scannable forms from the IRS, filing them, and sending the returns back to the IRS.

Note: If your legal residence or principal place of business is outside the United States, file with the Internal Revenue Service, Austin Submission Processing Center, P.O. Box 149213, Austin, TX 78714.

If you are on the fence between paper filing and e-filing, start with the IRS filing threshold, not the mailing address. If you file 10 or more total information returns across form types for the year, you must e-file. If you are under that threshold and choose paper filing, mail official scannable Copy A forms, include Form 1096 as the transmittal, and use the IRS address assigned to your business location. If you want to avoid paper packets, address matching, and manual errors, you can e-file through an IRS-authorized provider like Tax1099.

If You’re e-Filing Form 1099-NEC

The IRS mandates e-filing if you are filing 10 or more than 10 information returns, aggregated across all form types, unless you receive an approved waiver. Starting from tax year 2026 / filing season 2027, IRIS will be the only IRS intake system for information returns. They are sunsetting FIRE system for current, prior-year, or correction submissions. So, ensure your filing workflow is ready for this massive change.

For 2026 information returns filed in 2027, since IRIS is replacing FIRE, you can simply use IRS-approved e-filing providers like Tax1099 to file your 1099-NEC forms electronically, instead of overhauling your entire process.

Follow Tax1099’s 3-step process to prepare, validate, and eFile your 1099-NEC forms securely. But before you get to that, sign up and create your free Tax1099 account to get started.

E-File Form 1099-NEC In 3 Simple Steps With Tax1099

Step 1: Import your tax data.

Choose from any of the available accounting and data management integrations to import your tax-related data and let Tax1099’s powerful platform populate the electronic returns without any manual upload from you and your team’s end. You also have the option to fill out the forms manually if you prefer not to use auto-population.

Step 2: Validate the tax information

Validate your vendor TINs with our real-time TIN matching tool. As well as review the vendor payment information, recipient’s address, tax withholdings, and other details to ensure that the forms show accurate information.

The validation step should end with taking action, not just TIN match. If a contractor’s TIN is not accurate, update the W-9 before filing, and start the 24% backup withholding when required. For errors discovered only after filing, submit a corrected 1099-NEC with the correct information and send an updated recipient copy to the contractor. If you need more time to file, submit Form 8809 by the due date, but do not assume Form 1099-NEC receives an automatic extension.

Step 3: eFile Form 1099-NEC

At this point, you can choose to schedule your 1099 returns with Tax1099’s eSchedule tool or manually eFile your returns before the 1099-NEC due date.

E-File Form 1099-NEC quickly and securely with Tax1099 in just 3 steps.

E-File 1099 NEC