How do I view, create, and file 1099-NECs with Found?

If you have paid a contractor $600 or more in a calendar year you will need to send your contractor a 1099-NEC and file that form with the IRS. This form is due to the contractor and IRS by January 31.

Found automatically tracks payments that you make to contractors from your Found account, as well as any additional payments that you’ve recorded manually. To see your cumulative payments to each contractor, navigate to Contractor Management and find the 1099 payments report.

You can view draft 1099-NEC forms for all of your contractors—including any contractors who are missing W-9 information or haven’t been paid more than $600 in a year. Here’s how to view those forms:

On Mobile

• Tap the Payments icon

• Tap Contractor tax forms to see a list of contractors that you’ve paid this tax year.

• Tap any of these contractors to view their draft 1099-NEC.

On Desktop

• Navigate to Contractors.

• Select 1099 forms to see a list of contractors that you’ve paid this tax year.

• Select any of these contractors to view their draft 1099-NEC.

Missing information? Tap the Request W-9 button to send your contractor a secure link to share their W-9 information, including name, business classification, TIN, and address, with you.

Get a step-by-step guide to the 1099-NEC form on our resource center.

FAQs

How do I file my contractors’ 1099-NECs with the IRS?

Once your contractors’ profiles are complete and you’ve ensured that all payments from the previous year have been recorded, you must file these 1099-NEC forms with the IRS by January 31.

Found users are able to e-file these forms directly from Found between January 1 and January 15. Here’s how:

• Log into your Found account on a computer.

• Navigate to Contractors.

• Select the File 1099s button at the top of the page.

• Review your contractors’ payments by tapping the contractor’s name. If you need to add payments that have not been tracked already, you can add them from this view. Select Next when done.

• Check for any mistakes in your contractors’ information. Found will automatically highlight any contractors who are missing information, but be sure that the information provided is accurate. Select Next.

• Choose E-file with Found as your filing method.

• Select the contractors that you want to e-File for and select Submit. Confirm your e-filing and you’re done!

If you miss Found’s e-file deadline, you can still submit these forms to the IRS. Select File on your own when prompted and follow the instructions provided. Your 1099s will be sent to your email address.

Once you’ve downloaded your 1099s, you can e-file them directly with the IRS, including using their Information Returns Intake System (IRIS). You can find more information on how to e-file with IRIS on the IRS’s website.

When can I download 1099-NECs to send to my contractors?

1099-NECs for the previous year can be downloaded in January as PDFs, which you can then distribute to contractors through email, SMS, or other means. Here’s how:

• Navigate to Contractors.

• Select Download all to receive PDFs of each of your required 1099s by email.

• Otherwise, select Download next to each contractor whose 1099 you want to download.

Keep in mind that it is your responsibility to distribute 1099s to your contractors who were paid $600 or more by January 31st of the following year.

Why do some of my contractors say 1099 not required?

When downloading 1099s for your contractors, you may notice that some of these contractors have a “1099 not required” label next to their name. There are a couple of reasons for that:

• Your contractor was paid less than $600 in the past year. If your contractor is missing payments—for example, if they were paid in cash or otherwise paid outside of Found—you can add them in Found.

• Your contractor’s tax classification doesn’t require 1099s. According to IRS rules, 1099s are not required for corporations, trusts, estates, or LLCs with S Corp or Corporation tax status.

If your contractor’s tax classification is incorrect, you have two options to adjust this, depending on how the information was added.

• If you added your contractor’s information, you can edit their W-9 in their profile.

• If your contractor submitted their own information, you can send them a new W-9 request from their profile.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.