The IRS will most likely require you to file an information return, if you have made a payment during the calendar year as a self-employed individual or while operating as a small business. As your informational tax forms contain and report the non-employee compensation, you are required to file yours on time. If you do not file the information returns or provide the payee statements on time, a penalty and, on top of that, monthly interest may apply to you.
 

You may also be required to file Form 1099-MISC for different types of reportable miscellaneous compensations. Although the 1099-MISC no longer reports the non-employee compensation since the beginning of 2020. Therefore, the non-employee compensation has to be reported using the Form 1099-NEC.
 

Join us on Clatid to cover the latest updates on Form 1099-NEC and 1099-MISC for 2022, as well as a look at Form W-9 and how to stay compliant with your reporting obligations. Reporting contract labor on Form 1099-NEC is not necessarily the only obligation an employer has; employers need to be gathering proper information at the start of a relationship with a contractor. If they don't gather more information, backup withholding may be required.
 

If there's a mismatch in TIN (Taxpayer Identification Numbers), IRS issues CP-2100 notices. In this training, we will cover the steps to reply to such notices correctly. We will also discuss the filing issues including deadlines, the e-filing mandate and IRS penalties for late filing. We will also learn the classification of contractors vs. employees. This training will also provide a complete guide on how to effectively use Form W-9 documentation for proper compliance.