Archive for Form 1099-NEC

Businesses Have Feb. 1 Deadline To Provide Forms 1099-MISC And 1099-NEC To Recipients

Forms 1099-MISC and 1099-NEC

The Internal Revenue Service reminds businesses and other payors that the revised Form 1099-MISC, Miscellaneous Income PDF, and the new Form 1099-NEC, Nonemployee Compensation PDF, must be furnished to most recipients by February 1, 2021.

Redesigned Form 1099-MISC

The IRS revised Form 1099-MISC for the 2020 tax year to accommodate the creation of a new Form 1099-NEC. The redesigned 1099-MISC has different box numbers for reporting certain income. Businesses must send Form 1099-MISC to recipients by February 1, 2021, and file it with the IRS by March 1 (March 31 if filing electronically).

If businesses are using Forms 1099-MISC to report amounts in box 8, Substitute Payments in Lieu of Dividends or Interest, or box 10, Gross Proceeds Paid to An Attorney, there is an exception to the normal due date. Those forms are due to recipients by February 16, 2021.

Read More

Written by | Posted in Form 1099-MISC • Form 1099-NEC

Move Over 1099-MISC: The New Form 1099-NEC Is Here!

Move Over 1099-MISC: The New 1099-NEC Is Here!

As you likely know by now, there has been a major change that will impact your customers’ filings for the 2020 tax year and beyond. The IRS has recently released the1099-NEC, a new form replacing Form 1099-MISC box 7 for reporting nonemployee compensation.

Breaking Down the 1099-NEC

The new 1099-NEC is based on an old form that has been out of use since 1982. The IRS revived the form to address some time-management and administrative issues that arose under the Protecting Americans from the Tax Hikes Act of 2015 (PATH Act). The new Form 1099-NEC effectively separates certain data from box 7 of the 1099-MISC, in addition to staggering the filing due dates.

Read More

Written by | Posted in Form 1099-NEC