1099s including the new form 1099-NEC What payments are Reportable and when are they Duefrom Russel Stuart
1099s report payments made to non-employee service providers, as well as payments to suppliers and other entities you do business with.
Think of your own organization, can you name all the types of service providers you use? Do you know which payments are reportable on 1099s, and the minimum amounts you must pay before they are reportable? There is a new 1099-NEC for tax year 2020 that replaces the box 7 payments of the 1099-MISC.
The threshold for a 1099-NEC is low - only $600 - that requires you report these payments to the IRS, so they can match them against the other party's tax return.
The deadline to get these to payees, and to the IRS, is now MUCH sooner than it used to be. Also, things like backup withholding and other requirements can make this more complex than it needs to be. (from )