How Many Copies of 1099-NEC Are Needed for A Business?
For a business, the number of copies of Form 1099-NEC (Nonemployee Compensation) that need to be prepared and distributed depends on the specific situation and the recipients involved. Here’s a breakdown of the copies typically required:
Download Our Free Brochure →Copy A (Federal): Copy A of Form 1099-NEC is the version that needs to be submitted to the Internal Revenue Service (IRS). This copy is not usually provided to the recipient.
Copy B (Recipient): Copy B is intended for the recipient of the 1099-NEC form, which is an individual or business who received nonemployee compensation from the business. It must be provided to the recipient by January 31st of the year following the tax year being reported.
Copy C (Business): Copy C is retained by the business for their records.
In addition to these copies, businesses may also need to prepare and distribute other copies depending on state requirements, such as state tax agency copies or recipient state copies. State regulations can vary, so it’s important to check with the appropriate state tax agency to determine if any additional copies are necessary.
