In the past, payments of at least $600 to attorneys, independent contractors, or directors, among others, were required to be reported on Form 1099-MISC. Other payments, such as rents, royalties, and prizes, also were reported on this same form, but in different boxes. For the 2020 tax year, a new form, Form 1099-NEC, is required to be filed for all nonemployee compensation payments. Other payments that are not nonemployee compensation payments will continue to be reported on Form 1099-MISC.
We are notifying you of this change now so you can take the opportunity to properly identify those payments that may require Form 1099-NEC reporting, and ensure you have all the required information on file. To gather the tax information of independent contractors or other noncorporate or legal service providers, you may use Form W-9.
Forms 1099-NEC for the 2020 tax year are required to be filed with the IRS on or before 2/1/21, using either paper or electronic filing procedures. Forms 1099-MISC for the 2020 tax year are required to be filed with the IRS by 3/1/21, if you file on paper, or 3/31/21, if you file electronically. Both forms are required to be provided to recipients (payees) by 2/1/21. (If you are reporting payments in box 8 or 10 of Form 1099-MISC, you have until 2/16/21 to provide that form to recipients.)
If you need assistance or would like to engage our firm to help guide you through the reporting process, please contact us.
Mike and Staff
Dear Clients and Friends - we ask that you please contact us via email, since our offices are currently closed to the public, and email is the best method of reaching us as we work remotely. Please be patient as we continue to provide services for you, and know that we will respond to you as soon as possible, via email and/or on the phone. In the meantime, please make arrangements to scan, email, fax, or mail us your documents. Alternatively, you can drop your data off in one of our secure drop boxes next to each of our outside office doors, or you can access our firm’s portal at https://wittenbergcpa.filegenius.com/index.php#.
Thank you! Mike and Staff
Wittenberg CPA, PS
329 W. Railroad Avenue, Suite 200
P.O. Box 1783
Shelton, WA 98584
Ph (360) 426-0230 Fx (360) 426-1464
1401 4th Avenue E., Suite 201
Olympia, WA 98506
Ph (360-350-4460 Fx (360) 338-0269