IRS regulations require us to report when we directly pay fees of a specified amount
or more during a tax year to a representative or to a business entity on behalf of
an affiliated representative.
The reporting threshold:
For Form 1099-NEC is $600 in 2025 and $2,000 in 2026.
For Form 1099-MISC the reporting threshold is $600 in 2025 and 2026.
For both Form 1099-NEC and Form 1099-MISC beginning in 2027, the threshold will be adjusted for inflation.
When we make aggregate payments to representatives or entities meet or exceed the
specified amount in a tax year, we report the income to IRS using Forms IRS 1099-MISC and
1099-NEC, as appropriate.
When the representative informs us of their association with a business entity as
a partner or employee, we use Form SSA-1694 to obtain the name, address, and employer identification number of the business entity.
All entities that want to receive direct payment need to register or update their
registration with necessary payment and Point of Contact (POC) information. This information
will be collected on a revised SSA-1694, Entity Registration and Taxpayer
Information. We must enter the information from Form SSA-1694 into the Registration, Appointment
and Services for Representatives (RASR) system.
Anyone who intends to be an entity's POC must register as a representative using
Form SSA-1699 Representative Registration before they can be named as a POC for an entity. Once
the persons registration is processed, they will receive a representative identification
(RepID) number, which is required to complete form SSA-1694.
For more information on the Form SSA-1694 and the entity registration process see
GN 03913.050.
For more information on the registration process, see Social Security Online - SSA-1699 Representative Registration.
For more information on the POC, see GN 03913.005.