The IRS requires that information returns on Form 1099-NEC be filed when payments above a certain threshold amount are made by businesses to independent contractors.
Payments processed by third-party settlement organizations such as PayPal must report on Form 1099-K if over a threshold.
The One Big Beautiful Bill Act (OBBBA) changes the thresholds for filing these forms, which will result in far fewer being filed.
New $2,000 1099-NEC Filing Threshold
Currently, if a business pays an unincorporated independent contractor (non-employee) $600 or more for services during the year by check, cash, or direct deposit for business-related services, it must file IRS Form 1099-NEC, telling the IRS how much it paid the contractor.
The form must also be filed when a lawyer or physician is paid $600 or more for business-related professional services, even ... Log in to view full article.
