What is a Form 1099-NEC? What is it needed for?

What is a Form 1099-NEC?

Form 1099-NEC reports income earned that is not reported on other tax forms (e.g. W-2, Schedule K-1, etc.). It is issued to domestic, non-corporate entities (including persons, partnerships, etc.) for $600 or more in aggregate payments made in the tax year to that entity from a single payor. If the corporate entity is a law firm, a 1099 is still required.

Form 1099-NEC is required to be issued by January 31st.

Why did I receive one?

As part of Full-Service Fund Management, AngelList's Belltower Tax Team will issue 1099s for payments made by the fund. These include payments for management fees, legal fees, audit fees, etc.

An exception to this is when the recipient of management fees is also a member of the fund. In these cases, a 1099 will not be issued. Instead, management fees will be reported on the recipient's Schedule K-1.

What do I do with it?

You will need to provide Form 1099-NEC to your tax advisor to handle any tax filings.

If you are receiving a 1099 for a multi-member management company on the AngelList Management Company Offering, then no action is required. AngelList's Belltower tax team will handle the relevant tax filings for the management company.

How do I or my advisors access it?

If you have access to the AngelList dashboard, your Forms 1099-NEC will be available under Taxes > Tax Documents. You can add a team member to grant your advisors access to your tax documents. For more information please see How do I or my advisors access the AngelList Lead Dashboard for taxes?

If you do not have access to the AngelList dashboard, your Form 1099-NEC will be emailed to you. The attachment for your Form 1099-NEC will be password protected using all 9 digits (without dashes) of your Taxpayer Identification Number (TIN).

A TIN can be an individual's Social Security Number (SSN), an entity's Employer Identification Number (EIN), or an Individual Taxpayer Identification Number (ITIN). If the tax document does not open with the 9 digits of the recipient's TIN, please respond to the email with a completed IRS Form W-9 for the recipient so we can compare with our records and resolve any discrepancies.

What do I do if the Form 1099-NEC is incorrect?

Please reach out to taxes@belltowerfunds.com for assistance. If the recipient is incorrect, please provide an IRS Form W-9 for the correct recipient. If the amount is incorrect, please provide the amount you were expecting and we will investigate the discrepancy.

What is a Corrected tax form?

A Corrected tax form is filed with the IRS if an error is discovered after filing the original 1099. The "Corrected" checkbox will be marked. Both the original and corrected files will be provided to you.


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