IRS Releases Final Version of 2020 Form for Nonemployee Pay

A final version of the 2020 form for nonemployee compensation was released Nov. 19 by the Internal Revenue Service.

The 2020 Form 1099-NEC, Nonemployee Compensation, is to be used with the 2020 Form 1099-MISC, a final version of which also was released Nov. 19 by the IRS. The nonemployee compensation form would reduce the need for multiple reporting dates on Form 1099-MISC.

The new 1099-NEC deleted information in Box 2, which previously said: “Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient) for resale.” Box 2 was used to report the amount ...