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Business & farm
Yes, I agree you are right in both assumptions. According to this IRS.gov link, "If you paid someone who is not your employee, such as a subcontractor, attorney or accountant $600 or more for services provided during the year, a Form 1099-NEC needs to be completed," The key word is services.
In the first example, you are paying for inventory, which does not require a 1099. The second example is an example of a service being provided. This requires a 1099-NEC in accordance with IRS guidelines.
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‎January 10, 2022
3:04 PM