Recently, there have been some revisions to the reporting requirements for Form 1099’s. Beginning with the tax year 2020, the IRS will require taxpayers to report nonemployee compensation on Form 1099-NEC. In previous tax years, nonemployee compensation (NEC) was reported on Form 1099-MISC. In addition, the extension for all Form 1099’s was eliminated which means the due date will be January 31. Due to the creation of Form 1099-NEC, the IRS rearranged box numbers for reporting income on Form 1099-MISC. See below for a highlight of these changes.

  • Payer made direct sales of $5,000 or more (checkbox) in box 7.
  • Crop insurance proceeds are reported in box 9.
  • Gross proceeds to an attorney are reported in box 10.
  • Section 409A deferrals are reported in box 12.
  • Nonqualified deferred compensation income is reported in box 14.
  • Boxes 15, 16, and 17 report state taxes withheld, state identification number, and amount of income earned in the state, respectively.

We have included a link to the IRS’ website which provides more details regarding these changes. Please feel free to reach out with any questions you may have regarding this issue.

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