New 1099 Reporting Requirements

New 1099 Reporting Requirements

If you typically report non-employee compensation to independent contractors on Form 1099-MISC, you will have a new form due this January.  The IRS has shifted the reporting of non-employee compensation to form 1099-NEC, in an effort to simplify the use of each form. This new form will require all applicable filers to furnish the 1099-NEC to the payee and file with the IRS.

Threshold for 1099 Filing

A snapshot of some of the requirements include:

1099-NEC

  • Generally, payments of nonemployee compensation totaling $600 or more require the filing of new Form 1099-NEC.

1099-MISC

  • Rent payments totaling $600 or more are still reported on Form 1099-MISC
  • Gross attorney fees totaling $600 or more are still reported on Form 1099-MISC

 

Important Due Dates: 1099’s have various due dates depending on the recipient.  A quick reference of these due dates is a follows:

1099-NEC

  • January 31, 2021 – Due date to the recipient
  • January 31, 2021 – Due date to IRS

1099-MISC

  • January 31, 2021 – Due date to the recipient
  • February 28, 2021 – Due date to IRS

 

If you have any questions regarding the new IRS 1099 reporting requirements, please reach out to either Eric Beining or Missy Dejene.

 

 

 

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