--- title: "Form 1099-NEC: Definition and Sources | Tax Glossary" description: "Form 1099-NEC is the IRS information return a business files to report payments of nonemployee compensation, such as fees paid to an independent contractor." url: https://wallacecpa.multisites.ai/glossary/form-1099-nec publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- Federal tax # Form 1099-NEC Form 1099-NEC is the IRS information return a business files to report payments of nonemployee compensation, such as fees paid to an independent contractor. A business uses Form 1099-NEC to report what it paid an independent contractor for services. The contractor is not an employee, so there is no [Form W-2](https://wallacecpa.multisites.ai/glossary/form-w-2) and no withholding. The business sends a copy to the contractor and a copy to the IRS. To fill out the form, the business needs the contractor's name, address and tax ID. A [Form W-9](https://wallacecpa.multisites.ai/glossary/form-w-9) collects those details. Paper filers also send Form 1096. The [small business accounting page](https://wallacecpa.multisites.ai/services/small-business-accounting) covers year round records and filing steps. [Wallace CPA can helpSmall business accounting](https://wallacecpa.multisites.ai/services/small-business-accounting) ## Related terms - [Form W-9](https://wallacecpa.multisites.ai/glossary/form-w-9) - [Form W-2](https://wallacecpa.multisites.ai/glossary/form-w-2) - [Payroll tax](https://wallacecpa.multisites.ai/glossary/payroll-tax) - [Bookkeeping](https://wallacecpa.multisites.ai/glossary/bookkeeping) ## Sources 1. [IRS: Reporting payments to independent contractors](https://www.irs.gov/businesses/small-businesses-self-employed/reporting-payments-to-independent-contractors) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092