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- Re: 1099-NEC
1099-NEC
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Opfor77
Level 4
11-22-2025
08:11 AM
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I am doing '20 - '24 tax returns for a Sch C musician. Musician paid a bandmate approximately $2,500/ year for each of the 5 tax years. Client has no current info on former bandmate, such as address, social security number, birth date, etc. A 1099-NEC is required for $600 or more of contract labor. Any ideas how to treat this?
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Terry53029
Level 15
11-22-2025
08:26 AM
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If your client does not have an I-9 I wouldn't worry about it unless the IRS sends him a letter. Its up to you to take clients word on amounts he paid him. Assume he at least has records of all his expenses including contract labor. Your client should try and locate his former band mate, and keep a record of what he did to try to locate him, so he can show the IRS that he did try, but was not able to.
qbteachmt
Level 15
11-22-2025
12:51 PM
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Did your taxpayer actually hire the others? Or are they only splitting the take?
My spouse gets paid mostly in cash for gigs. Whoever gets the cash at the gig passes it around, so the payment to the rest of the band members is just passing along the funds. Even if it is a Venmo payment (which includes tips, now), it's not one person hiring the other band members.
There are some venues which send 1099-NEC (and one even used a W2), but these are so few, the event doesn't result in a reporting requirement to the other members in the band. Of course, it depends on what your taxpayer makes at a typical gig. For instance, around here, a 17-piece big band doesn't make enough per person at a gig to meet the reporting level. Even with multiple gigs a year, there is no one place that hires them enough times in the calendar year to meet that reporting level.
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Opfor77
Level 4
11-22-2025
01:11 PM
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He hires them.
TaxGuyBill
Level 15
11-22-2025
03:40 PM
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There is a penalty for not filing them, but there is also a penalty for filing them without the ID number. Personally, I wouldn't file them unless the client can get that information.
But be sure to mark those questions about 1099s on the Schedule C appropriately. And warn the client that the IRS could assess penalties for not filing them (although that is fairly uncommon).
