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IRS Form 1099 Misc Changes For 2021

What are IRS Form 1099-Misc Changes:? The IRS has made changes to the IRS Form 1099-MISC by reviving the new 1099-NEC form. The 1099-NEC 2020 form will use for reporting nonemployee compensation (NEC) payments beginning with the 2020 tax year. Previously, non-employee compensation reports in Box 7 of the Federal Tax 1099-MISC form. Now, these payments will report in Box 1 of the IRS 1099-NEC form.

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IRS Form 1099-Misc Changes For 2020

2021 Form 1099-Misc Changes

Form 1099-Misc has been changed and box numbers have been rearranged due to the creation of 1099-NEC. Particularly, Form 1099-Misc Box 7 changed due to the reintroducing of the 1099-NEC Form. A filer who wants to report miscellaneous payments must use the 1099-Misc 2020 Form. Also, the filer must file Federal Tax 1099-Misc Form to the IRS before the deadline.

Boxes of IRS 1099-Misc Form

Internal Revenue Service changes the form 1099-Misc. Box numbers of Printable 1099-Misc Form are rearranged as follows.

  • Payer made direct sales of $5,000 or more used to report in box 7.
  • Box 9 of Fillable 1099-Misc Form used for reporting crop insurance proceeds.
  • 1099-Misc Box 10 used for reporting gross proceeds to an attorney.
  • Section 409A deferrals are reported in box 12 of the 1099-Misc Tax Form.
  • Box 14 of Printable 1099 Misc Form used for reporting nonqualified deferred compensation income.
  • 1099-Misc 15, 16, and 17 Boxes used to report state taxes withheld state identification number, and amount of earnings earned in the state, respectively.

Why IRS Changed Federal Tax 1099-Misc Form?

Payers are always confused about 1099-Misc Form Filing Deadlines. Before changing 1099-Misc, payers use Form 1099-Misc for reporting NEC payments in box 7. Generally, Box 7 payments (non-employee payments) must be reported to the IRS and recipient by January 31st. And, remaining payments reported to the IRS by February 28th through paper forms. If the filer reports Box 7 payments with other payments after January 31st, IRS considers the form as a late filing Form. Even IRS also confuses to declare late filing Forms. To avoid the confusion, IRS uses the 1099-NEC form and changed the 1099-Misc Form.

1099-Misc 2021 Filing Deadlines

The filer can file a 1099-Misc Form by using 2020 IRS paper forms or electronically. Also, must issue a 1099 Form to the recipient by February 1st, 2021 if the filer uses either E-filing or paper filing. Box 8 and Box 10 payments are must report to the recipient by February 15th. File 1099-Misc Paper Form to the IRS by March 1st, 2021. Through electronic filing, the filer must file his tax form to the IRS by March 31st, 2021.

If the filer does not file Form 1099 Online before the deadline, then he must request an extension with the IRS. For getting more time, must file the 8809 Form before the due date with the IRS.

Conclusion

1099 filers must know the changes of 1099 updated tax forms. Filers who want to file 1099-Misc for the 2020 tax year must use the updated form. Also, issue 1099-Misc before the deadline to the IRS and recipient before the deadline.

For more information about the updated 1099-Misc Form and 1099 E-filing, you can contact our website form1099online.com.

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