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.
Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
InsightNew IRC Section 174 can affect all taxpayersTravis Butler, Scott Ibbotson, Tim MorrisonThe new Section 174 law has far-reaching implications for companies conducting qualified research and/or have experimental expenditures. Read more.
InsightRethinking tax accounting methods: 4 key change typesRichard Shevak, Travis Butler, Tim MorrisonOptimizing your company’s tax accounting methods can help you avoid IRS risk or defer tax payments. Read about 4 top change types and their benefits.