The New 1099-NEC Form and State Reporting

Beginning in 2021 for 2020 payments, Form 1099-NEC is being used instead of Form 1099-MISC to report most non-employee compensation payments. That’s a significant change, but there’s something else you need to be aware of: The IRS Combined Federal/State Filing Program hasn’t been extended to Form 1099-NEC. What that means is that if you have previously depended on the IRS to send the payment information to states that participate in the program, you won’t be able to do that for 1099-NEC…