Beginning with tax year 2020, use Form 1099-NEC to report nonemployee compensation.
The tax deadline for filing the 1099-NEC is February 1, 2021.
The tax deadline for filing the 1099-MISC is March 31 when filing electronically.
Let us know if we can help you with your 1099-MISC and 1099-NEC filing needs:
Generally, any person, including a corporation,
partnership, individual, estate, and trust, who makes
reportable transactions during the calendar year must file
information returns to report those transactions to the IRS.
Persons required to file information returns to the IRS must
also furnish statements to the recipients of the
To properly report the information required on Form 1099, you need to have the provider's taxpayer identification number (TIN). You can request that the provider fill out and give you a Form W-9, Request for Taxpayer Identification Number and Certification, before work is done or payments are made. If a provider does not supply you with a taxpayer identification number, you are generally required to "backup withhold" 28 percent from any "reportable payments."
File Form 1099-NEC for each person to whom you have paid during the year:
File Form 1099-MISC for each person to whom you have paid during the year:
In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.
Some payments are not required to be reported on Form
1099-MISC, although they may be taxable to the recipient.
Payments for which you are not required to file a Form
(1) generally, payments to a corporation;
(2) payments for merchandise, telegrams, telephone, freight, storage, and similar items;
(3) payments of rent to real estate agents;
(4) wages paid to employees (these must be reported on Form W-2, Wage and Tax Statement);
(5) military differential wage payments made to employees while they are on active duty in the Armed Forces or other uniformed services (these also must be reported on Form W-2);
(6) business travel allowances paid to employees (may be reportable on Form W-2);
(7) cost of current life insurance protection (must be reported on Form W-2 or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.);
(8) payments to a tax-exempt organization, including tax-exempt trusts (IRAs, HSAs, Archer MSAs, and Coverdell ESAs), the United States, a state, the District of Columbia, a U.S. possession, or a foreign government; and
(9) certain payment card transactions if a payment card organization has assigned a merchant/payee a Merchant Category Code (MCC) indicating that reporting is not required.
Attorney fee payments made to corporations generally must be reported on Form 1099-MISC.
If you fail to provide Form 1099s and cannot show reasonable cause for the failure, you may be subject to a penalty. The penalty applies if you fail to provide the statement by the deadline, fail to include all information required to be shown on the statement, or include incorrect information on the statement.
This list is not meant to be all inclusive and each taxpayer's situation is different. Please call our offices if you would like to discuss your specific tax deadlines and/or liabilities.
We can also assist you in preparing other 1099 forms such as 1099INT, 1099DIV and 1099S.