Internal Revenue Brings back Form 1099-NEC for the nonemployee compensation
The Path Act of 2015 has many things that are taxpayer friendly. That said, the Congress and Internal Revenue have felt that employer misclassification of employees/contractors was an issue that needed a much closer look.
So, in that vain, the IRS has brought back the 1099-NEC (non-employee compensation) form. Since 1983, businesses reported non-employee compensation on 1099-MISC. Now, for 2020 and beyond, non-employee compensation must be reported on 1099-NEC. The filing due date is January 31 for the 1099-NEC.
For sure, the Internal Revenue will now review even closer the proper and improper use of classification as to who is an independent contractor and who is an employee.
We can assist with the 1099 preparation and proper analysis of employer/contractor classification. The IRS believes millions has been improperly classified as “independent contractors” to reduce labor costs.
The distinction between genuine independent contractors and common law employees can be complex and we can assist. Call us First, and call us now Call us a First Call Tax Advocates Corp 718-400-9250
You need to call us now and call us First! Call us at First Tax Tax Advocates 718-400-9250
https://firstcalltaxadvocates.com/
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