IRS Tax Tip: Reporting Nonemployee Compensation, Backup Withholding (IRC §6041A)

Beginning in tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee, the IRS stated. Nonemployee compensation may be subject to backup withholding if a payee has not provided a taxpayer identification number to the payer or the IRS notifies the payer that the TIN provided was incorrect. The form is generally due by January 31, but for 2020, the due date is February 1, 2021, the IRS stated. [IRS Tax Tip 2020-80 (July 6, 2020)]

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