{"id":1238,"date":"2020-09-30T08:18:17","date_gmt":"2020-09-30T08:18:17","guid":{"rendered":"https:\/\/www.tax2efile.com\/blog\/?p=1238"},"modified":"2023-07-03T09:38:37","modified_gmt":"2023-07-03T09:38:37","slug":"irs-debuts-draft-of-1099-nec","status":"publish","type":"post","link":"https:\/\/www.tax2efile.com\/blog\/irs-debuts-draft-of-1099-nec\/","title":{"rendered":"IRS debuts draft of 1099-NEC to Replace 1099-MISC box 7"},"content":{"rendered":"<p id=\"E100\"><span id=\"E101\">Recently the IRS released the draft of 1099-NEC, which is considered to be the replacement of <a href=\"https:\/\/www.tax2efile.com\/efile-1099-form\/efile-form-1099-misc\">Form 1099-MISC<\/a> Box 7 to report the non-employee compensation and Box 9 to report the direct sales about $5,000 or more. <\/span><span id=\"E103\">The NEC can reduce the confusion caused after the passage of the PATH Act in 2015. As per the PATH Act, the <a href=\"https:\/\/www.tax2efile.com\/efile-1099-form\/1099-filing-deadline\">deadlines to report <\/a><\/span><span id=\"E104\">Form 1099-MISC Box 7 is dated from 31<\/span><span id=\"E105\">st<\/span><span id=\"E106\"> March to 31<\/span><span id=\"E107\">st<\/span><span id=\"E108\"> January. But the end date for non-Box 7 Form 1099 is 31<\/span><span id=\"E109\">st<\/span><span id=\"E110\"> March. There are two different end dates for a single form.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\r\n<div class=\"ez-toc-title-container\">\r\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\r\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\r\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/irs-debuts-draft-of-1099-nec\/#Draft_of_1099_NEC_as_a_replacement_for_1099_MISC_Box_7\" >Draft of 1099 NEC as a replacement for 1099 MISC Box 7<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/irs-debuts-draft-of-1099-nec\/#IRS_about_the_Form_1099_MISC\" >IRS about the Form 1099 MISC<\/a><\/li><\/ul><\/nav><\/div>\r\n<h3 id=\"E111\"><span class=\"ez-toc-section\" id=\"Draft_of_1099_NEC_as_a_replacement_for_1099_MISC_Box_7\"><\/span><span id=\"E112\">Draft of 1099 NEC as a replacement for 1099 MISC Box 7<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p id=\"E113\"><span id=\"E114\"> <\/span><span id=\"E115\">The NEC replaces Form 1099-MISC Box 7 <\/span><span id=\"E116\">as a replacement form for Form 1099-MISC to report non-employee compensation. But 1099 Form-MISC is used to report other compensation types and the updated or the newer version of the 1099 Form-MISC is not yet released by the IRS. <\/span><\/p>\n<p id=\"E117\"><span id=\"E118\">Till now, the due date to report the Form 1099-NEC is 31<\/span><span id=\"E119\">st<\/span><span id=\"E120\"> January and the due date to file the Form 1099-MISC is 31<\/span><span id=\"E121\">st<\/span><span id=\"E122\"> March. However, separate due dates for each of the Form is likely to be announced in 2021.<\/span><\/p>\n<h2 id=\"E123\"><span class=\"ez-toc-section\" id=\"IRS_about_the_Form_1099_MISC\"><\/span><span id=\"E124\">IRS about the Form 1099 MISC<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p id=\"E125\"><span id=\"E126\">This newer form enables the tax filers to file the Form on time so that it reduces the fine and penalties from the IRS. <\/span><span id=\"E127\">As per the new regulations, when a tax filer submits the Box 7 of Form 1099-MISC lately along with the NON-box 7 forms then the IRS counts all the Non-box 7 Forms 1099-MISC is submitted lately, even though it was filed on time. The listing below a few of the criteria to be noted:<\/span><\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li style=\"list-style-type: none;\">\n<ul style=\"list-style-type: square;\">\n<li id=\"E128\" class=\"qowt-li-0_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E129\">When the tax filer submits the Box 7 Form by 31<\/span><span id=\"E130\">st<\/span><span id=\"E131\"> January to the IRS before the given deadline.<\/span><\/li>\n<li id=\"E132\" class=\"qowt-li-0_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E133\">Late box 7 submission after 31<\/span><span id=\"E134\">st<\/span><span id=\"E135\"> January.<\/span><\/li>\n<li id=\"E136\" class=\"qowt-li-0_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E137\">When the tax filer sends the non-box 7 Form to the IRS by 31<\/span><span id=\"E138\">st<\/span><span id=\"E139\"> March, before the due date of the non-box 7 Form.<\/span><\/li>\n<li id=\"E140\" class=\"qowt-li-0_0 qowt-list qowt-stl-ListParagraph\"><span id=\"E141\">In some sets of non-box 7 forms, the tax filer submits the late box 7 forms 1099-MISC.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p id=\"E142\"><span id=\"E143\">The last point may attract the penalties due to late submiss<\/span><span id=\"E144\">ion as the late submission of box 7 along with the non-box 7 form will be considered late submission by the IRS and it is subjected to penalties. But the new draft of the 1099 NEC Form can eradicate these confusions among the taxpayers <\/span><span id=\"E145\">as it separates the forms. This is an indication that the IRS is concerned about the taxpayers related to the PATH act. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently the IRS released the draft of 1099-NEC, which is considered to be the replacement of Form 1099-MISC Box 7 to report the non-employee compensation and Box 9 to report the direct sales about $5,000 or more. The NEC can reduce the confusion caused after the passage of the PATH Act in 2015. As per [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1238","post","type-post","status-publish","format-standard","hentry","category-form-1099"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts\/1238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/comments?post=1238"}],"version-history":[{"count":0,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts\/1238\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/media?parent=1238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/categories?post=1238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/tags?post=1238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}