A blog post

IRS revives Form 1099-NEC for nonemployee compensation!

Posted on the 14 August, 2019 at 6:45 pm Written by in General

The Internal Revenue Service has revived a form that hasn’t been used since the 1980s, Form 1099-NEC, Nonemployee Compensation.

Since 1983, the IRS has required businesses to instead file Form 1099-MISC for contract workers and freelancers.
The revival of Form 1099-NEC is part of an effort mandated by Congress in the PATH Act of 2015 to require businesses to file information returns about any non-employee compensation by Jan. 31 of each year. However, there were problems with the IRS’s processing systems because there was still a March 31 due date for any Form 1099-MISC that didn’t contain non-employee compensation. The new form is dated 2020, so it would NOT be used for reporting nonemployee compensation in this year, but in 2020.

However, in March the IRS computers were unable to apply two different due dates to batch Forms 1099-MISC . The results of a single Form 1099 – MISC in a batch submitted after January 31 with an entry in box 7 for non-employee compensation would cause a notice to be issued charging late payment fees on every Form 1099-MISC submitted.

Also, the new Form 1099-NEC is different from the old Form 1099-Misc so pay close attention.