Should we replace a 1099-NEC form with a 1099-MISC?

March 14, 2022

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Q. I have a vendor who was issued a 1099-NEC. The payments were for "Credit Enhancement Fee" services provided by the vendor. The vendor has now requested that we rescind the 1099-NEC we issued and replace it with a 1099-MISC because their accountant told them that 1099-NEC income is subject to Social Security Tax and the service they provided was not "non-employee compensation". I am not familiar enough with this to determine if it should be reported on the 1099-NEC or 1099-MISC. Can anyone…

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