Nonemployee Compensation

Forms and Documents

Document Name	Status
1545-0116 SS 2019.docx Supporting Statement A	2021-01-07

IC Document Collections

IC ID	Document Title	Status
128594	Nonemployee Compensation (Form 1099-NEC) Instruction	Modified

ICR Details

OMB Control No: 1545-0116	ICR Reference No: 201907-1545-019
Status: Active	Previous ICR Reference No: 198108-1545-102
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Nonemployee Compensation
Type of Information Collection: Reinstatement with change of a previously approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 01/08/2021
	Date Received in OIRA: 08/03/2020
Terms of Clearance: Supporting statement clarified during review.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	01/31/2024	36 Months From Approved
Responses	70,802,480	0	0
Time Burden (Hours)	5,900,206	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: Form 1099-NEC is used to report payments made in the course of a trade or business for services performed by someone who is not an employee, and for withholding of federal income tax under the backup withholding rules.

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Authorizing Statute(s): PL: Pub.L. 114 - 113 201 Name of Law: PATH Act
  

Citations for New Statutory Requirements: PL: Pub.L. 114 - 113 201 Name of Law: PATH Act

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	84 FR 38104	08/05/2019
30-day Notice:	Federal Register Citation:	Citation Date:
	84 FR 69824	12/19/2019
Did the Agency receive public comments on this ICR? Yes

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Nonemployee Compensation (Form 1099-NEC)	1099-NEC	Nonemployee Compensation

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	70,802,480	0	63,188,480	0	0	7,614,000
Annual Time Burden (Hours)	5,900,206	0	3,970,206	0	0	1,930,000
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The Form 1099-NEC was previously approved by OMB in 1981 and expired in 1982. As of 1982 the information relating to nonemployee compensation was collected on Form 1099-MISC (OMB Control No. 1545-0115). The Internal Revenue Service subsequently discontinued use of Form 1099-NEC and allowed OMB Control Number 1545-0116 to expire. In light of the PATH Act changes, IRS is reviving the Form 1099-NEC and reinstating OMB No. 1545-0116.

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Annual Cost to Federal Government: $458,322

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     Yes

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 08/03/2020

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