The Latest Changes in the 1099-NEC Form
- 12 December 2022
The 1099-NEC form from IRS is used in case if during the year the employer paid nonemployees, such as independent contractors, for services performed. The IRS made changes to the 1099-NEC form to make it easier for businesses to report income paid to independent contractors.
The main change to the 1099-NEC form is the addition of a new box for reporting nonemployee compensation. This new box, Box 7, replaces the box that was previously used to report this type of income on the 1099-MISC form. This change was made to help the IRS better identify and track income paid to independent contractors.
In addition to the new box for nonemployee compensation, the new version of the 1099-NEC form also includes updated instructions and revised reporting requirements. These changes were designed to make the form easier to complete and to ensure that businesses are reporting income and taxes accurately.
The current version of the 1099-NEC form can be obtained on the IRS website. The form is reviewed and updated on an annual basis, typically in the fall of each year. It is important to use the most current version of the form to ensure that your reports are accurate and complete.
