It’s important to remember that corporations, including S-Corporations and C-Corporations, generally do not receive a 1099 for services they provide. This allows the IRS to determine whether the contractor, who is responsible for paying their own taxes, is paying the correct amount when their return is filed.
Before, these payments were reported using a 1099-MISC (and listed in box seven).īecause this form is provided to both the contractor and the IRS, it allows the government to track the amount of tax they should expect from non-employee contractors. It’s used to report payments to contractors and service providers who are not employees at your company and do not have taxes withheld. While there are a variety of 1099 forms, the newest one is 1099-NEC.
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