Tax
Form 1099-NEC
Form 1099-NEC is the IRS form used to report payments for services made to non-employees, such as independent contractors. Businesses issue it to US persons paid above the reporting threshold in a calendar year, sending copies to the recipient and to the IRS.
In plain terms: The form you send a US contractor and the IRS showing what you paid them.
Why it matters
It applies to US persons. For a non-US contractor performing services outside the United States you generally collect Form W-8BEN instead and issue no 1099 — a distinction that saves considerable confusion.
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