1099-NEC Replaces 1099-MISC for Payments to Independent Contractors, Vendors
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.
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.Back To List