{"id":15273,"date":"2021-02-06T14:42:04","date_gmt":"2021-02-06T20:42:04","guid":{"rendered":"https:\/\/sfwpartnersllc.com\/?p=15273"},"modified":"2021-02-06T14:42:04","modified_gmt":"2021-02-06T20:42:04","slug":"the-new-form-1099-nec-and-the-revised-1099-misc-are-due-to-recipients-soon","status":"publish","type":"post","link":"https:\/\/www.sfw.cpa\/news-and-guides\/the-new-form-1099-nec-and-the-revised-1099-misc-are-due-to-recipients-soon\/","title":{"rendered":"The New Form 1099-NEC and the Revised 1099-MISC are Due to Recipients Soon"},"content":{"rendered":"

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There\u2019s a new IRS form for business taxpayers that pay or receive certain types of nonemployee compensation and it must be furnished to most recipients by February\u00a01, 2021. After sending the forms to recipients, taxpayers must file the forms with the IRS by March\u00a01 (March\u00a031 if filing electronically).<\/p>\n

The requirement begins with forms for tax year 2020. Payers must complete Form 1099-NEC, \u201cNonemployee Compensation,\u201d to report any payment of $600 or more to a recipient. February\u00a01 is also the deadline for furnishing Form 1099-MISC, \u201cMiscellaneous Income,\u201d to report certain other payments to recipients.<\/p>\n

If your business is using Form 1099-MISC to report amounts in box 8, \u201csubstitute payments in lieu of dividends or interest,\u201d or box 10, \u201cgross proceeds paid to an attorney,\u201d there\u2019s an exception to the regular due date. Those forms are due to recipients by February\u00a016, 2021.<\/p>\n

1099-MISC changes <\/strong><\/p>\n

Before the 2020 tax year, Form 1099-MISC was filed to report payments totaling at least $600 in a calendar year for services performed in a trade or business by someone who isn\u2019t treated as an employee (in other words, an independent contractor). These payments are referred to as nonemployee compensation (NEC) and the payment amount was reported in box 7.<\/p>\n

Form 1099-NEC was introduced to alleviate the confusion caused by separate deadlines for Form 1099-MISC that reported NEC in box 7 and all other Form 1099-MISC for paper filers and electronic filers.<\/p>\n

Payers of nonemployee compensation now use Form 1099-NEC to report those payments.<\/p>\n

Generally, payers must file Form 1099-NEC by January\u00a031. But for 2020 tax returns, the due date is February\u00a01, 2021, because January\u00a031, 2021, is on a Sunday. There\u2019s no automatic 30-day extension to file Form 1099-NEC. However, an extension to file may be available under certain hardship conditions.\u00a0<\/p>\n

When to file 1099-NEC<\/strong><\/p>\n

If the following four conditions are met, you must generally report payments as nonemployee compensation:<\/p>\n