Nonemployee Compensation

Forms and Documents

Document Name	Status
Justification of No Material Nonsubstantive Change.docx Justification for No Material/Nonsubstantive Change	2024-08-08
Supporting Statement-1545-0116.docx Supporting Statement A	2024-09-24

IC Document Collections

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

ICR Details

OMB Control No: 1545-0116	ICR Reference No: 202408-1545-005
Status: Received in OIRA	Previous ICR Reference No: 202311-1545-013
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Nonemployee Compensation
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 09/25/2024

	Requested	Previously Approved
Expiration Date	04/30/2027	04/30/2027
Responses	88,125,500	101,154,000
Time Burden (Hours)	22,912,630	22,253,880
Cost Burden (Dollars)	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: None

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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:
	88 FR 65773	09/25/2023
30-day Notice:	Federal Register Citation:	Citation Date:
	89 FR 6180	01/31/2024
Did the Agency receive public comments on this ICR? No

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

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

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ICR Summary of Burden

	Total Request	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	88,125,500	101,154,000	0	0	-13,028,500	0
Annual Time Burden (Hours)	22,912,630	22,253,880	0	3,525,020	-2,866,270	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

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

Burden Reduction Due to:

Short Statement: In response to the Federal Register notice dated April 29, 2022 (87 FR 25568), Internal Revenue Service (IRS) received one comment regarding Form 1099-MISC. The American Payroll Association (APA) provided the following suggestions/explanations: - Move Box 14 (excess golden parachute payments) on Form 1099-MISC to Form 1099-NEC; American Payroll Association – Comments on Forms 1099-MISC and 1099-NEC Changes made as a result of APA comments received 10/12/23 will result in a burden increase of 3,525,020 hours. Updated estimates based on 2023 Pub 6961 will result in burden decrease of 2,866,270 hours.

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Annual Cost to Federal Government: $40,269

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: 09/25/2024

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