Report payments of $600 or more to independent contractors, freelancers, and other non-employees.
The IRS is retiring FIRE. It accepts information returns until 3 p.m. ET on 19 November 2026, and from 1 January 2027 IRIS is the only electronic channel - including for prior-year returns and corrections. New Transmitter Control Codes are no longer issued through FIRE, so a TCC application now has to go through IRIS.
IRS noticeForm 1099-NEC is used to report non-employee compensation. Since tax year 2020, the IRS separated non-employee compensation from Form 1099-MISC into its own form. Any business that pays $600 or more to a non-employee during the tax year must file Form 1099-NEC with the IRS and provide a copy to the recipient.
Filing threshold: $600
Paper Filing
January 31
Electronic Filing
January 31
Recipient Copy
January 31
$60-$310 per form depending on how late; up to $630 for intentional disregard
2024 penalty tiers: $60/form (≤30 days late) → $130/form (31 days-Aug 1) → $310/form (after Aug 1) → $630/form (intentional disregard). Small business caps may apply.
| Box | Description |
|---|---|
| Box 1 | Non-employee compensation amount |
| Box 4 | Federal income tax withheld |
| Box 5 | State tax withheld |
| Box 6 | State/Payer's state no. |
| Box 7 | State income |
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File electronically through IRIS, or through FIRE until it closes on 19 November 2026. No paper, no postage, instant confirmation.
Verify taxpayer IDs before filing to avoid CP2100 notices and B-Notice requirements.
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File corrections or void forms electronically - no manual IRS correspondence needed.
1099-NEC is specifically for non-employee compensation (e.g., independent contractor pay). 1099-MISC covers other types of miscellaneous income like rent, royalties, prizes, and medical payments.
No. The IRS only requires filing when total payments to a single recipient reach $600 or more during the tax year.
Yes. TaxBlitz files 1099-NEC electronically through IRIS, and through FIRE until the IRS closes it on 19 November 2026. From 1 January 2027 IRIS is the only electronic channel, including for corrections.
Penalties range from $60 per form (filed within 30 days of the due date) to $310 per form (filed after August 1), with a maximum of $630 per form for intentional disregard.
Yes. You should collect a completed W-9 from each payee before making the first payment. TaxBlitz includes automated W-9 solicitation to simplify this process.
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