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New Form 1099-NEC

January 8, 2021 by Tracey Nagel
Copeland Buhl

The IRS has changed the 1099 reporting requirements related to nonemployee compensation.  Nonemployee compensation will now be reported on Form 1099-NEC rather than Form 1099-MISC. 

As was the case under the old rules, only payments for services of $600 or more require a 1099-NEC. If the recipient is taxed as a corporation, the 1099-NEC is generally not required. A full list of what should be reported as nonemployee compensation can be found on the IRS website at https://www.irs.gov/pub/irs-pdf/i1099msc.pdf.

The due date for filing Form 1099-NEC is January 31st (February 1st this year due to the 31st being on a Sunday).

Contact your Copeland Buhl representative if you have questions on the new 1099 reporting requirements.