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DRAFT Forms 1099-MISC and NEC

On September 13, 2021, the Internal Revenue Service (IRS) made a noteworthy announcement by releasing DRAFT versions of Forms 1099-MISC and 1099-NEC for the upcoming tax year. While the changes may appear subtle at first glance, they carry significance for taxpayers and businesses alike. Here are some of the key updates worth noting:

  • Both DRAFT Forms 1099-MISC and NEC have been updated to reflect that they are continuous use forms.
  • DRAFT Form 1099-MISC includes renumbering of Boxes 13-18. The FATCA Filing Requirement checkbox is now Box 13 and all previously numbered boxes 13-17 on Form 1099-MISC have been renumbered 14-18 on the DRAFT Form 1099-MISC to accommodate the update.
  • Both MISC and NEC include references to the current General Instructions for Certain Information Returns in place of instructions regarding due dates, because the DRAFT Forms are continuous use forms and not year specific.

While the changes to the MISC and NEC may seem subtle, they play a crucial role in ensuring accurate and compliant tax reporting. Taxpayers and businesses are encouraged to review the DRAFT forms and accompanying instructions carefully, staying informed of any updates or changes that may impact their reporting obligations. By proactively addressing these changes, taxpayers can avoid potential compliance issues and ensure smooth sailing during tax season.

Check out the MISC here:

https://www.irs.gov/pub/irs-dft/f1099msc–dft.pdf

And the NEC here:

https://www.irs.gov/pub/irs-dft/f1099nec–dft.pdf

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This document contains general information only and is not a substitute for accounting, tax, or any other professional advice or services. The information provided is considered accurate at the time of publishing and will not be updated with new regulation requirements.

Comply Connect April 2024 – Issue 10

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