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RESOURCE CENTER


FORM 1099-NEC & DIRECT TO STATE REPORTING

Tax and accounting professionals managing 1099 reporting will need help this tax
season. Here’s why.


NEW 1099 FORM

In 2020 1099-NEC was resurrected to replace box seven on Form 1099-MISC. This
means the 1099-NEC is the new form for reporting nonemployee compensation for
services amounting to $600 or more. As a result, this form has a significant
impact on all types of businesses and their 1099-MISC reporting processes.




NEW REPORTING REQUIREMENTS FOR FEDERAL & STATE

The IRS announcement in Publication 1220 added Form 1099-NEC to be included in
the Combined Federal/State Filing (CF/SF) program. It will be up to the state
agencies whether or not to make a change to participate in CF/SF and not
continue to require direct reporting. This means businesses will need to:

 * Track individual state guidance for the 1099-NEC that will continue to change
   late in the season
 * Understand state-specific requirements around data, reporting thresholds,
   format, timelines and adapting reporting processes for each state


THIS PAGE IS A ONE STOP RESOURCE TO HELP YOU GET THROUGH TAX SEASON.


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Access our on demand webinar and learn everything about the new form 1099 NEC
and state reporting requirements
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requirements
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SOVOS PRODUCTS

Learn about Sovos’s NEW 1099 NEC and direct to state reporting service offering
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DEMO

Watch a quick demo of Sovos’ solution
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IF 1099 - NEC HAS YOU FEELING A BIT OVERWHELMED, DON’T WORRY, SOVOS CAN HELP

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