It is used to report payments of $600 or more to nonemployees such as independent contractors and freelancers.
Businesses that pay nonemployee compensation during the year must file the form with the IRS and furnish copies to recipients.
Copy A goes to the IRS, Copy B is for the payee, Copy 2 may be filed with the state return and Copy C is kept by the payer.
Box 1 shows the total nonemployee compensation paid; other boxes may report federal withholding and state information.
You can file electronically through the IRS FIRE system or an authorized e‑file provider.
Some states participate in the Combined Federal/State Filing Program; others require you to file copies directly with the state tax agency.
The form must be provided to recipients and filed with the IRS by January 31, whether filed on paper or electronically.
Yes. The IRS may assess penalties for failure to file on time or for filing incorrect returns; the amount depends on how late the filing is.
