Hey everyone! With year-end fast approaching, it’s time to prepare for 1099-NEC filings. Nonprofits often work with independent contractors, and even though you’re tax-exempt, you’re still required to report payments to these vendors! Here’s what you need to know: 1. What to Report: - File Form 1099-NEC if you’ve paid $600 or more to any non-employee contractor, freelancer, or service provider in 2023. - Typical services covered: guest speakers, consultants, and any freelance services used for your nonprofit’s programs or admin work. 2. Gather Your W-9s: - Before you file, make sure you have a completed Form W-9 from each contractor. This ensures you have their Taxpayer Identification Number (TIN) and current address for accurate reporting. 3. File by January 31, 2024: - The IRS filing deadline for Form 1099-NEC is January 31, 2024—this applies to both filing with the IRS and providing copies to recipients. - E-filing makes the process quicker, and many e-file providers can send recipient copies for you. 4. Penalties for Late Filing: - Failing to file or filing late can lead to penalties, starting at $50 per 1099 and increasing with further delays. Quick Tip: Avoid common mistakes by double-checking each contractor’s information, including TIN and address. Accurate 1099s are essential to keeping your nonprofit in good standing and avoiding IRS headaches. If you need help with 1099 filings or have questions about reporting requirements, feel free to ask here. Let’s keep our nonprofit operations running smoothly! 😊