Ongoing changes in the IRS tax reporting requirements are affecting the way companies do compliance reporting, and it’s going to keep changing. Are you ready to outpace changes in IRS tax compliance rules? Does your business have what it needs to be compliant with IRS tax rules?
Maybe you’re thinking, it’s going to take a while for all these changes to affect my business. Think again – because before you know it, you could be submitting the wrong form or submitting after the past due date and paying hefty penalties to the IRS. How should companies respond to these complex IRS compliance pressures, and do you have the internal capabilities prepared to tackle these challenges? Taxseer has the IRS approved Form 1099 eFile platform for the Best-in-Class organizations to respond to these continuous changes in tax reporting requirements.
One of the important changes from the Tax Year 2020 is the introduction of Form 1099 NEC Online for easy reporting of nonemployee compensation and eliminating confusion over the filing deadline. While all these adjustments are happening, it is important that you are aware of your IRS related tax compliance deadlines along with the new policy changes. There is a lot that needs to be done this tax year and things are not going to be easy at all with the addition of the new form 1099 NEC in the 1099 form series.
Due dates for the IRS Form 1099-Series & W-2
The revised Form 1099-MISC, Miscellaneous Income, and the new Form 1099-NEC, Nonemployee Compensation, must be furnished to most recipients by February 1, 2021. Employers must file Form W-2 and other wage statements by February 1, 2021, to avoid penalties and help the IRS prevent fraud.
Section 6071(c) requires you to file Form 1099-NEC on or before February 1, 2021, using either paper or electronic filing procedures. File Form 1099-MISC by March 1, 2021, if you file on paper, or March 31, 2021, if you file electronically.
New Form 1099-NEC due date
Form 1099-NEC is a new form for tax year 2020 for nonemployee compensation of $600 or more to a payee. This form should be filed with the IRS, on paper or electronically, and sent to recipients by February 1, 2021.
There is no automatic 30-day extension to file Form 1099-NEC. However, an extension to file may be available under certain hardship conditions. Also, nonemployee compensation may be subject to backup withholding if a payee has not provided a taxpayer identification number to the payer or the IRS notifies the payer that the Taxpayer Identification Number provided was incorrect.
Redesigned Form 1099-MISC due date
The IRS modified Form 1099-MISC for the tax year 2020 to adjust the creation of a new Form 1099-NEC. The redesigned 1099-MISC has different box numbers for reporting certain income. Businesses must send Form 1099-MISC to recipients by February 1, 2021, and file a paper form with the IRS by March 1 or electronically by March 31.
If businesses are using Forms 1099-MISC to report amounts in box 8, Substitute Payments in Lieu of Dividends or Interest, or box 10, Gross Proceeds Paid to An Attorney, there is an exception to the normal due date. Those forms are due to recipients by February 16, 2021.
Deadlines help fraud detection
The due dates for information returns, like Forms 1099-MISC and 1099-NEC help the IRS more easily detect refund fraud by verifying income that individuals report on their tax returns. Filers can help support that process, and avoid penalties, by filing the forms on time and without errors. The IRS recommends e-file as the quickest, most accurate, and convenient way to file these forms.
E-File Form 1099 NEC Online for the Tax Year 2020 with Taxseer
Taxseer provides options to eFile Form 1099 NEC Online to the individual filers and tax professionals through the proven forms engine that mimics the paper forms. Filers generally used to perform form 1099 paper filing with the IRS find the Taxseer online editable forms very easy to use guided by the tax wizard to complete the error-free form. The ease of Filing 1099-NEC Form Online without any support from anyone makes Taxseer a truly self-service efile system for the filers or tax professionals. As part of our commitment to making e-filing easy and convenient, we are always available. Contact us today to learn more about how our model is best suited to your small business needs.
For starters, learn the 5 Easy Steps to e-File Form 1099-NEC Online through Taxseer.
Taxseer is a leading IRS-authorized e-file service provider offering you the best cloud-based solutions to perform online filings of Forms 1099 series, W-2, ACA (1095-B & 1095-C), 2290, 8849, 8809 and many more. We provide Wizard-driven e-filing for guided and error-free submissions and extend the security, intelligence, availability, and agility of the tax solution on the cloud. SSL-encrypted connections are used for transferring sensitive information and to provide a very safe environment for clients. As part of our commitment to making e-filing easy and convenient, we are always available.