Business Owners: There's a New Reporting Form for 2020
Beginning 2020, IRS has a new form, 1099-NEC , for reporting payments to independent contractors . An independent contractor is anyone whom you have paid to perform services for your business without their being on your payroll. The deadline for filing with the IRS and providing a copy to the contractor is generally January 31 (though this year we get one additional day because of the weekend), and IRS can hit you penalties if you’re late. Form 1099-MISC still exists and you may also need to file those if you made other types of reportable payments, including attorneys, rent on business property, and certain other payments. The 1099-MISC deadline remains March 1 (March 31 if filing electronically). Prior to the end of the year, you should: Make sure you have a W-9 form from any potential person or company who falls into either category (independent contractor or other payee). Plan to have your bookkeeping updated by early January so the forms can be filed before the deadline. ...