Form 1099-NEC is about non-employee compensation. As a result, if you have contractors for your business, you should be interested in this forms release. Also, if you’re interested, you can review the form on the IRS website here. It is just a draft, but they will be releasing the official form for the tax year 2020.
This was a result of some issues with the prior form (the 1099-MISC) having some filing issues resulting in late fees for some who submitted it. It is an attempt to make sure that all contractors income is reported more accurately. So, if you have contractors working for you – or you are a contractor youreslf, you should review the form & note the changes from last years filing. Or, if you prefer, we can help you figure them out!
Cash Tax and Accounting
9590 N McGee Street
Kansas City, MO 64155