IRS Launches New Form Replacing 1099-MISC for Contractors in 2020
For years, businesses used Form 1099-MISC to report calendar-year payments exceeding $600 to individuals who performed business services. These include vendors, independent contractors, freelancers, and consultants. There has been an important change in the way nonemployee compensation is reported for 2020. The new Form 1099-NEC will be used to report all payments made to nonemployee service providers, while Form 1099-MISC will narrow in scope, retaining its focus on royaltie
