Lieberman & Brandsdorfer, LLC

December 23, 2020 11:40 EDT

IRS Revises Form 1099-MISC Reporting Miscellaneous Income

By Mark M. Brandsdorfer, Esq.

For Tax Year 2020, the IRS has substantially revised Form 1099-MISC Miscellaneous Income. Form 1099-MISC has been extensively redesigned and renumbered. Non-employee compensation (NEC) is no longer reported on this form. For NEC, filers should look to new Form 1099-NEC. As a result, it is more important than usual for filers to review their accounts payable policies and tax/accounting software to ensure that filers are prepared to report amounts in the correct boxes and on the correct forms. Also, Form 1096 has been updated to reflect the addition of Form 1099-NEC. If you generate or complete these forms through your tax or accounting software, you should make sure you are using the most current update to these forms to ensure compliance with IRS reporting requirements.

Highlights of Form 1099-MISC:

  1. Non-employee compensation is no longer reported on this form. See Form 1099-NEC and instructions.
  2. Form recipient mailing deadline remains February 1st with an IRS paper filing deadline of March 1st and IRS electronic filing deadline or March 31st.

Also note that Form 1096, Annual Summary and Transmittal of U.S. Information Returns, has been updated to add Form 1099-NEC to the list of forms that are filed under Form 1096. If you use computer completed forms to prepare your Form 1096, care should be taken to ensure that the most up-to-date version of your software properly accounts for the addition of this new box on Form 1096.


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