If you’ve paid independent contractors in 2020, you’ll need to complete the new form 1099-NEC instead of a 1099-MISC.
Businesses need to use this form if they made compensation payments totaling $600 or more to a nonemployee (independent contractor) during 2020.
Form 1099-NEC’s are due to the nonemployee and IRS by Jan 31 (just like W-2s now).
The IRS requires this form for 2020 mainly to clarify the separate deadlines for filing different types of payments typically reported on Form 1099-Misc. Form 1099-Misc is not due to IRS until Feb 28.
I’ve been seeing more and more IRS penalties being assessed the past few years related to late 1099 filings. IRS is very focused on 1099 compliance given their perception of pervasive non-reporting of income by self-employed individuals.
Please contact me with questions or if you need assistance preparing your 1099s.
Eric
Eric Johnson, CPA
Tel. (702) 941-7787
Eric Johnson CPA LLC
2850 W Horizon Ridge Pkwy #200
Henderson, NV 89052
Near I-215/Eastern Ave. exit; only 2 miles via Eastern to Coronado Center at W. Horizon Ridge. The “Regus” building.