1099 Forms | What Are IRS Forms 1099 NEC & 1099 MISC

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MORE INFORMATION: This video provides information about two different forms used by the Internal Revenue Service (IRS) for income verification. 1099-NEC, Non-Employee Compensation, and 1099-MISC are two forms typically sent to vendors who provide services to businesses in January. This is done to ensure that everyone is reporting their income accurately, avoiding any potential issues with illegal activities like working “under the table.” These forms are gathered by the IRS and help ensure a smooth process for businesses who need to report income and are valuable to both the government and businesses. This video explains how each form is used and the importance of accurately reporting income.

TRANSCRIPT: So there's two different forms for the IRS. There's 1099, N. E. C., non-employee compensation, and 1099 miscellaneous forms. These are traditionally sent in January to any vendor who you work with who provides you services. And the reason why we do this is it's an income verification for the IRS because oh, let's see, how do I say this? They want to make sure that everybody is on the up and up. 1099 are gathered by the IRS and they help make sure that every contractor is reporting their income accurately. And it helps them know that you're not working under the table and so that you're not working under the table that they're not working under the table.