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Reporting Online vs. Offline Software on a 1099
October 22, 2026
Q. I watched the IOFM webinar 2026 Back to Basics Form 1099 NEC and heard that online software is a service, while offline software is rent. I asked my IT department to tell me which software was online and which was offline. They came back with a response that it is not cut and dry and had more questions for me. They want further explanation of definitions for offline vs. online software.We have some software that could be categorized as both. Some can be installed on a PC or via browser or…
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