New IRS Form 1099-NEC And Changes To 1099-MISC Tax Reporting: Major Changes to Implement in 2020

The 1099-NEC is being reintroduced to address confusion created by the PATH (Protecting Americans from Tax Hikes) Act of 2015. That Act established different due dates for the various types of income reported on the 1099-MISC, leading to undeserved penalty notices for filers. The renewed 1099-NEC form separates out nonemployee compensation from other sections of the 1099-MISC and imposes a filing deadline of Feb. 1, 2021.

For years, businesses reported payments to contractors in box 7 of the 1099-MISC.  Starting in 2020, this is changing; contract-labor payments will now go on the Form 1099-NEC. We will discuss this new form as well as changes to the 1099-MISC in light of this new form being rolled out. Other topics covered include: penalties and how to get out of penalties; using the Form W-9 for compliance; how to tell the difference between a contractor and an employee; how to deal with reimbursements to contractors.

• Form 1099-NEC for reporting of independent contractor
  
• Basic guidelines for W-9 Disclosures and 1099 Reporting
• IRS Draft Review of Form 1099-Misc & 1099-NEC
• E-filing mandate is dropping
• Backup withholding requirements and procedures
• Due dates and IRS penalties and fixing errors
• Paying reimbursements to contractors
• Form W-9: documentation that establishes reportable and non-reportable payees
• Common 1099 errors - how to prevent them and how to correct them
• Form 1099-K and its interaction with the 1099-MISC and 1099-NEC

Credits and Other information:

• Session Duration: 2 Hours
• Case Studies and Live Q&A session with speaker
  
• PowerPoint presentation for reference
• Session learning level: Introductory
  
• Delivery method: Group Internet Based
• IRS Credits: 2 Tax Hours
• IRS Course ID: PJGWS-T-00012-20-O

Who Will Benefit:

• CPA's
  
• Tax Attorneys
• Accountants
• Tax Compliance Managers
• Other Tax Professionals