IRS Update: 1099-Nec Now 3 Forms per Page
For tax year 2021, the IRS has redesigned Form 1099-NEC to three forms per page, as compared to the previous year where it was constructed of two forms. Due to this change, a new envelope will be required for distributing recipient copies. Please contact us with questions or for help with ordering compatible products.
Form 1099-NEC Information & Requirements
As of tax year 2020, nonemployee compensation typically reported on Form 1099-MISC (Box 7 - Nonemployee Compensation), is now required to be reported on Form 1099-NEC (Box 1). The Internal Revenue Service (IRS) and various states are requiring this form to be filed by the effective deadline, January 31, 2022.
We encourage you to prepare early. There will be extra work involved with this change. You may need to switch to a paperless filing method or order additional envelopes or forms. Nelco can help you with either of these.
For tax year 2021, filing 1099-MISC to the IRS and various states is still mandatory for reporting other types of income.
Avoid the work of reprogramming your software. Consider Nelco's paperless reporting service as the only filing method for the 1099-NEC.
Federal reporting is required. The IRS has set an effective filing due date of January 31, 2022 for Form 1099-NEC.