Form 1099-NEC is a tax form used in the United States to report non-employee compensation. It is primarily issued to independent contractors, freelancers, and other self-employed individuals who have earned $600 or more in a calendar year from a business or individual. This form helps the Internal Revenue Service (IRS) track income that is not subject to withholding taxes. The 1099-NEC was reintroduced in 2020, separating non-employee compensation reporting from the 1099-MISC form. Businesses must provide a copy of the form to both the recipient and the IRS by January 31 of the following year. Accurate reporting is essential to avoid penalties and ensure compliance with tax regulations.