NEW FORM—1099-NEC for 2020
The IRS has revived an old form last used back in 1982! The IRS has separated out the reporting of payments to non-employees from Form 1099-MISC —where it was reported in Box 7—and they have also redesigned Form 1099-MISC for tax year 2020. Because non-employee payment reporting has been removed from Form 1099-MISC for 2020 and the foreseeable future, the IRS has redesigned Form 1099-MISC. The biggest change is Box 7, which was previously used for reporting non-employee payments and is now used for direct sales of $5,000 or more. The new 1099-NEC form for 2020 is not complicated, but figuring out who must receive it may be difficult. Filing form 1099-MISC/NEC is still the law! For 2019 businesses are required to send a 1099-MISC to report payments to unincorporated vendors for services that total over $600. If you need these forms prepared, we can help! Having the vendor fill out a W-9 form is the easiest way to gather information come tax time. View and download this new form for free! |
AuthorKim Kellly, EA is a professional serving business owners and personal tax filers around the world since 1993. She is based in San Diego California. Archives
January 2021
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