1099-NEC

[TomDx]

I own and rent a townhouse.  In 2021 I had a contractor replace a floor for $2,500.  I did not issue a 1099-NEC because I didn't know I had to... What happens now?

Thanks 

Tom

[ZoltanB45]

You can issue it late, take the penalties and move forward. If you do not issue it, you would hope that the contractor does not go to the IRS. 

[TomDx]

I doubt the Contractor will go to the IRS... I paid in Cash.   So on my return if I say I paid someone more than $600, but did not issue a 1099-NEC, what happens?

Thanks 

Tom

[ColeenD3]

You could be questioned about it by the IRS. If you are deducting it, he needs to pay tax on it.