Master Guide to Form 1099 Compliance | E-Book

 2020 Master Guide to Form 1099 (E-Book)

Last revised: October 12, 2020

The 2020 Master Guide to Form 1099 Compliance provides detailed instruction surrounding the reporting rules, regulation updates and changes, and provides indexed information for the very wide range of 1099 reporting scenarios that you could encounter in Accounts Payable.

Sections clarify the use of Form W-9; payments reportable on Form 1099-MISC; payee types that are exempt from being reported; backup income tax withholding requirements; handling IRS “B” notices and proposed penalty notices; settlement and attorney payments; filing to the IRS; furnishing recipient copies; and more. The wealth of supporting documentation will help inform your actions and ensure that you are reporting accurately, on-time, and stay in compliance. 

Form 1099 reporting for 2020 requires close attention to IRS changes and the need for updates to your procedures and systems:

  •  Most payers that filed Form 1099-MISC for 2019 will need to file two separate forms to the IRS for 2020: 1099-MISC forms and 1099-NEC forms
  • Form 1099-NEC for 2020 is a new IRS form required for reportable payments of “nonemployee compensation” – the type of payments previously reported in box 7 of the 1099-MISC form
  • The IRS repurposed several boxes on the Form 1099-MISC for 2020.  Here’s one example: “Gross proceeds” reported for an attorney or law firm must be in box 10 for 2020 (not box 14 as on prior years’ 1099-MISC).  If you mistakenly reported these amounts in box 14 for 2020, you’d be telling the IRS that the attorney was included in a section 409A nonqualified deferred compensation plan of your organization.    
  • Keep up with current information about IRS enforcement campaigns including the one targeting payers that failed to backup withhold federal income tax at the 24% rate from certain 1099 reportable payments, and the increase in the penalty amount charged for failures in Form 1099 reporting.

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