Penalties for failing to file 1099-NEC

I learned of a former Classical Conversations (CC) Director that left CC and started a nonprofit homeschool group in spring 2021. She forgot to file Form 1099-NEC for her 6 CC tutors that she paid in early 2021.

The Form 1099-NEC is the form business and nonprofits must give to any non employee workers paid more than $600 in a calendar year. One copy of the form 1099-NEC goes to the worker and the other goes to the IRS.

The 1099-NEC is due to the worker by January 31 for the preceding year and due to the IRS by February 28.
It’s easy to file the 1099-NEC using an online service like

If you are a business owner or nonprofit leader and late in filing the 1099-NECs, the IRS assesses a late penalty of $110 per form.

The former CC Director will owe the IRS $660 in late filing penalties!

This is one of the disadvantages of running a homeschool group as your business: you have to remember things like this all by yourself and you are solely responsible for the fines if you forget!
If you homeschool group is a nonprofit organization (with a board and bylaws as required), the board helps remember things like this and bears the responsibility together. The burden is not all on the shoulders of one person.

If you are interested in starting a nonprofit homeschool organization or converting a business to a homeschool nonprofit, then this recorded webinar is what you need!

The Create a Nonprofit webinar is 90 minutes and covers:

  • The difference between a business and a nonprofit
  • What are the advantages and disadvantages of being a nonprofit
  • Forming a board: who can be one it, what do they do, etc.
  • and much more!