The start of a new year can be hectic for business owners. The last thing you should be doing in January is trying to collect W-9s from your contractors and vendors so you can issue them a 1099-NEC. The new 1099-NEC (non-employee compensation) must be issued by January 31, 2022 to any contractor or vendor to whom you pay $600. …
The W-9 is critically important for businesses to collect from anyone to whom they will make payments for services. The W-9 is required in order to issue Form 1099-NEC, a new form required by the IRS for the 2020 tax year.
The IRS changes Form 1099 for 2020 Tax Year!
For the 2020 Tax Year, the IRS is requiring a new form, the 1099-NEC to report nonemployee compensation. The 1099-NEC is a whole form dedicated to BOX 7 (nonemployee compensation) formerly on the Form 1099-MISC.