Are you ready for the new 1099 form? Did you know that there was a new form? Use this bookkeeping checklist to prepare in five easy steps.
The IRS has a new form for nonemployee compensation (NEC), which businesses previously recorded in Box 7 of the 1099-MISC form. Technically, Form 1099-NEC isn’t new — it was last used in 1982. It’s been a while since 1982 so we all probably need a fresh look at what is required in Form 1099-NEC. Also, note that the filing deadline for the 1099-NEC form is February 1, 2021. The standard due date is January 31 — this year, January 31 is a Sunday, so the due date is February 1. (That's also the deadline for sending copies of 1099-NEC forms to all affected vendors and independent contractors.)