Tax reporting for nonemployee compensation: Be aware of new form, deadline for 2020

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For prior years, payments by businesses of compensation of $600 or more per year to nonemployees have been reported for tax purposes using Form 1099-MISC. However, for 2020 and after, a new Form 1099-NEC (Nonemployee Compensation) will be required in lieu of Form 1099-MISC for this purpose. (The 2020 Form 1099-MISC has also been revised to reflect the elimination of reporting nonemployee compensation using that form.)

Form 1099-NEC will generally be due by Jan. 31. However, for 2020 reporting, Form 1099-NEC filings will be due by Feb. 1, 2021

In addition, there will be no automatic 30-day extension available for Form 1099-NEC filings, although an extension may be available in connection with certain hardships.


Dana Fried, JD, LLM, Managing Director, National Tax Services


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