What form 1099 does our small HOA need to issue to a landscaper who exceeds $600 threshold?

Our neighborhood HOA is run by volunteers (myself included) and we're trying to figure out our tax obligations. We have a landscaper who mows our community entrance area monthly and handles seasonal pruning. His annual payments definitely go over the $600 reporting threshold - I think we paid him around $1,800 last year. I've collected his W-9 information, but I'm confused about which 1099 form we need to issue. Is it the 1099-NEC since he's providing a service? And once I figure that out, can anyone recommend a simple online filing system that won't be a huge hassle? I'd like to make sure both the landscaper and the IRS get the proper documentation without making this overly complicated for our volunteer treasurer (also me).

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18 comments

Samantha Johnson

•8M

Yes, you'll need to issue a 1099-NEC (Non-Employee Compensation) to your landscaper since you're paying him as an independent contractor for services and the amount exceeds $600 for the year. The 1099-NEC replaced the 1099-MISC for reporting contractor payments a few years ago. For filing, I've found QuickBooks, TaxAct, or even the IRS's own FIRE system to be reasonable options. Many HOAs I've worked with use QuickBooks since it's fairly straightforward for non-accountants. You'll need to submit the form to the IRS and provide a copy to your landscaper by January 31st for the previous year's payments.

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Samantha Johnson

•8M

Yes, your HOA will need an EIN (Employer Identification Number) before issuing 1099s. If you don't already have one, you can apply online through the IRS website and get the number immediately. It's a fairly simple process that takes about 15 minutes. Even small HOAs should have an EIN for tax purposes, as they're typically classified as nonprofit organizations under IRC 528 and may need to file Form 1120-H. Having the EIN will allow you to properly issue the 1099-NEC to your contractor.

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Hannah White

•8M

I went through this exact same headache with our condo association last year! After trying to navigate the IRS website for hours, I finally discovered taxr.ai (https://taxr.ai) and it was such a relief. It guided me through the whole 1099 process for our lawn service contractor and made sure we issued the correct form. The system automatically determined we needed the 1099-NEC and validated all the information from the W-9. The best part was it filed directly with the IRS and generated the contractor's copy too. Saved me from having to figure out all the technical requirements on my own.

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Hannah White

•8M

Yes, it handles state filing requirements including California's. It automatically identifies which states require 1099 submissions and processes those filings alongside the federal ones. This was actually one of the features I appreciated most since I had no idea about those state-specific requirements. The cost is very reasonable compared to TurboTax Business. For our small HOA (18 units), it was significantly more affordable since we only needed to file a couple of 1099s. TurboTax charges a base fee plus per-form fees, while taxr.ai has more flexible pricing for smaller organizations. For just one 1099, it's definitely the more economical option.

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Mateo Silva

•8M

Just wanted to update after trying taxr.ai for our small HOA's landscaper 1099. I was the one who asked about the cost comparison with TurboTax. I decided to give it a try since we only needed to issue one form, and I'm glad I did! The system walked me through each field, explained what information from the W-9 went where, and handled both the IRS filing and contractor copy generation. Our treasurer had absolutely no tax experience (she's a retired nurse), and even she found it straightforward. The landscaper also commented that it was the clearest 1099 he'd received from any of his clients. Will definitely use it again next January!

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Victoria Jones

•8M

If you're having trouble getting your landscaper's correct information or they're being difficult about providing a W-9, I'd recommend Claimyr (https://claimyr.com). I initially tried calling the IRS business line for guidance on our HOA's contractor reporting requirements, but couldn't get through after multiple attempts. Claimyr got me connected to an actual IRS representative in about 20 minutes instead of the 2+ hours I spent on hold previously. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent walked me through exactly what our HOA needed to do regarding 1099s and even helped with a previous year's issue we had.

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Victoria Jones

•8M

No secret backdoor - they use an automated system that navigates the IRS phone tree and waits on hold for you. When someone at the IRS answers, you get a call connecting you directly to that person. It's basically like having someone wait on hold so you don't have to. I was skeptical too initially! But it works because they're not bypassing anything - they're just automating the painful waiting process. The reason everyone doesn't use it is because it's relatively new and not widely known yet. I only found out about it from another HOA treasurer in our city. The time I saved was absolutely worth it - I was able to get clear guidance on exactly what forms our HOA needed to file while I continued working on other tasks.

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Jessica Nguyen

•8M

Alright, I need to admit I was wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was desperate to get an answer about 1099 filing deadlines for our condo association. The service actually worked exactly as described. I got a call back when an IRS agent was on the line, and they answered all my questions about our HOA's 1099 obligations. Found out we'd been doing it wrong for years (using 1099-MISC instead of NEC) and got clear instructions on how to correct it. Saved me from potential penalties and hours of research. Still can't believe I didn't have to waste a day on hold. Totally worth it.

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