Insights from Tax Year 2021 1099-NEC Reporting

1099-NEC reporting is here to stay along with its complexities and direct state reporting requirements. In the second year of the revival of 1099-NEC (last used in Tax Year 1982), additional regulation, updates and challenges continued. Most notably, the IRS included Form 1099-NEC in the Combined Federal/State Filing (CF/SF) program, causing confusion as many states still required direct reporting.

It is up to the state agencies whether to participate in CF/SF and not continue to require direct reporting. This means businesses need to track individual state guidance for the 1099-NEC. They should also understand state-specific data, reporting thresholds, format, and timeline requirements, as well as reporting processes for each state. Hear about Tax Year 2021 1099-NEC reporting top learnings, best practices, and insights about the future of this recently reintroduced form. 

Jess Scheer
Editor, IOFM

Jess Scheer is an award-winning business reporter, covering the needs of financial operations professionals for more than two decades.

As IOFM’s executive editor, Jess is responsible for continually updating member content on IOFM.com, as well as building our certification and event agendas. He is a popular speaker, hosting dozens of webinars each year and keynoting IOFM’s conferences.

Wendy Walker
Solution Principal, Sovos

Wendy is the Solution Principal of Tax Information Reporting at Sovos. Wendy has over 16-years of successful tax operations and compliance leadership experience with emphasis in large financial institutions. Wendy is a member of the Internal Revenue Service Advisory Council (IRSAC) and represents the industry on a variety of issues.

Wendy is the Chair of the Information Reporting Subgroup of the Internal Revenue Service Advisory Council (IRSAC) and advises the IRS on a variety of withholding and information reporting issues impacting the industry. The IRSAC annual recommendations are presented to the IRS Commissioner and represent a collaborative effort amongst many industry tax professionals to help the IRS improve administration of tax.

Wendy is an active industry advocate participating in several industry association groups that collaborate with the IRS and State tax agencies related to withholding and information reporting issues including the National Association of Computerized Tax Processors (NACTP) and the Council for Electronic Revenue & Communications Advancement (CERCA). Wendy also participates in industry association groups that are shaping tax policy for digital assets. A member of the Tax Task Force Committee Leadership team at the Chamber of Digital Commerce, Wendy also works with Wall Street Blockchain Alliance (WSBA) and the Accounting Blockchain Coalition (ABC) to help define best practices and principles for accounting and tax related to digital assets.

Kelly Conner
Product Marketing for Tax & Regulatory Reporting, Sovos

Kelly is a Manager, Product Marketing for Tax & Regulatory Reporting at Sovos and is responsible for driving product strategy and direction based on industry needs and requirements. Kelly has held many different roles at Sovos including a Client Services Representative where she serviced Sovos’ largest customers clients with tax determination and reporting requirements. Kelly graduated from the University of Wisconsin – La Crosse with bachelor degrees in Marketing and Communication Studies.