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Form 1099-NEC specifically reports compensations amounting to $600 or more made to non-employee parties, such as vendors, freelancers, independent contractors, and more. Business taxpayers use this form to report the non-employee compensations made during the course of a year along with the vendor TIN details.
IRS Form 1099-NEC for 2024 Tax year, doesn’t have any regulatory changes compared to 1099-NEC for 2023 Tax Year.
Watch this video tutorial to understand how to file 1099 NEC electronically. It is easy-to-use and intuitive.
The penalties vary depending on whether the business is small or large. The IRS considers you a small business if your average yearly revenue in the previous three years was $5 million or less.
Here are the penalties for different scenarios:
Filing Time | Penalty per 1099 Form | Maximum Penalty per Year (Large Business) | Maximum Penalty per Year (Small Business) |
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Within 30 Days | $60 | $630,500 | $220,500 |
From 31st Day to August 1st | $120 | $1,891,500 | $630,500 |
After August 1st or Not Filed | $310 | $3,783,000 | $1,261,000 |
Complete your filing in a few clicks using the new user-interface which is extremely easy to navigate
Our system does instant error checks along with thorough data validation to prevent errors and rejection
Tax1099 offers IRS-compliant edelivery, print and mail services, and options for downloading and distributing recipient copies efficiently.
Save time using bulk data upload templates in excel/csv templates to file multiple returns at once.
Save more with our tiered pricing structure! Choose from multiple pricing tiers and plans designed to accommodate your filing range.
We stand ready to assist our customers anytime, anywhere, ensuring that help is always at their fingertips through our live chat and email support.
The Combined Federal State Filing (CFSF) program allows a part of your federal eFile to be transmitted to the state at no extra cost. Non-participating states must receive a direct file. Learn more about 1099 state filing requirements
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