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1099-NEC Replaces 1099-MISC for Payments to Independent Contractors, Vendors

1099-NEC Replaces 1099-MISC for Payments to Independent Contractors, Vendors

December 2, 2020 By BGH Staff Member

For our clients who in previous years issued a 1099-MISC (reported in box 7) to independent contractors, vendors, freelancers & consultants, beginning Tax Reporting Year 2020, you must issue and file a Form 1099-NEC (nonemployee compensation) to these recipients instead. The other traditional uses for a Form 1099-MISC (i.e. rents, gross proceeds paid to an attorney, other income payments) remain in effect and Form 1099-MISC will continue to be used for these purposes.  

For additional information, please visit the IRS link below.

https://www.irs.gov/instructions/i1099msc

If you have any questions, regarding Form 1099-NEC, please feel free to reach out to one of our many trained tax professionals at Bormel, Grice & Huyett, P.A.

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The Cultural Alliance of Greater Washington has worked with Bormel, Grice & Huyett, P.A., since 1988. Their knowledge of the arts and the arts community make their services invaluable. They can translate accounting terminology into a comprehensive language. For many organizations, the accounting firm of Bormel, Grice & Huyett provides the financial "information bridge." We whole-heartedly recommend Bormel, Grice & Huyett, excellent accountants who care about our arts organizations.
Jennifer Cover Payne, Executive Director, Cultural Alliance of Greater Washington

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