{"id":5302,"date":"2022-03-03T14:17:56","date_gmt":"2022-03-03T14:17:56","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=5302"},"modified":"2022-03-03T14:18:08","modified_gmt":"2022-03-03T14:18:08","slug":"1099-nec-list-of-payments-not-covered","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/1099-nec-list-of-payments-not-covered\/","title":{"rendered":"1099 NEC: List of Payments Not Covered"},"content":{"rendered":"\n
\"1099 <\/picture><\/figure>\n\n\n\n

What is a 1099 NEC?<\/strong> Well, the 1099-NEC is one of the groups of 1099 forms that must be filed with IRS by all persons carrying on business to report payments to non-employee like independent contractors or professionals such as physicians, artists, writers, advocates. The NEC in form 1099 NEC stands for Nonemployee Compensation. Like all other 1099 forms, the central purpose of 1099 NEC is to collect information about income to a non-employee. <\/p>\n\n\n\n

The IRS use the payment information to compare the payee’s reported income on Form 1040. If some gap in reported income and tax return is found, then such a tax return may be subjected to an IRS tax audit<\/a>. In a way, this completes the cycle of monitoring the income and expenses of a business entity that claims these expenses on its business return. Hope that answers the common qestion “What is a 1099-nec form used for ?”<\/p>\n\n\n\n

\n

Table of Contents<\/p>\n