Year-end is one of the busiest times for your accounting team. For 2020, the IRS has changed the process for filing 1099’s by adding new forms and altering the filing requirements. These new requirements can make a busy time even more chaotic, so to make your life easier, here is a downloadable checklist and frequently asked questions with tips to help make sure that you are prepared for these changes.
At Trusted CFO Solutions, our outsourced accounting teams prepare the 1099’s for our clients. In addition, for our customers who have their own software and teams, we can help with this quick year-end checklist.
1099 Form Additions & Changes
Prepare for these changes to ensure the following:
- 1099-NEC – 1099-MISC Box 7 has been replaced by the 1099-NEC and is due to the IRS on February 1, 2021.
- 1099-MISC – This form is similar to prior years, but it is missing the nonemployee compensation and is due to the IRS on March 31, 2021.
- Filing Deadlines – All your 1099 forms, excluding the 1099-NEC are due to the recipients by February 1, 2021 and to the IRS by March 31, 2021.
- Filing Methods – if filing more than 250 Form 1099s, IRS requires you do so electronically. If you have fewer than 250, you can still file them by mail. If filing by mail, it must also include Form 1096, the summary of all of your 1099s. If you e-file, then no need to file Form 1096.
Have questions or need TCFOS’ help filing your 1099s? We have fixed price packages for outsourcing your 1099 filing needs. Contact our experts here.
Fill Out The Following Form To Receive Your Free 1099 Guide
Dixie McCurley — Co-Founder of Trusted CFO Solutions
Never able to fully identify with the stuffy title of “accountant”, Dixie McCurley set out to revolutionize accounting practices for small- to medium-sized businesses by offering a new way of thinking about the process. With a unique method that capitalizes upon the latest technology, she walks each client through their pain points. In 2019, she was awarded the Financial Leader of the Year award for innovative solutions in finance.
Click here to learn more about Dixie.