1099 Filing Season is Upon Us – What You Need to Know

Form 1099 season is quickly approaching, and now is the time to check the boxes and make sure your business is ready for a quick and painless filing in January.

1099’s report non-employee compensation to vendors who provide services such as independent contracting, consulting, attorney services, rents, royalties, commissions and much more.

Does Your Business Have to File 1099-MISC and/or 1099-NEC?

  • The answer is YES if you made any payments of at least $600 to any non-corporate vendors or contractors. Visit the IRS website for definitions, exceptions and specifics.

Do You Have What You Need To Prepare the 1099s Timely and Accurately?

  • Accurate records are critical when working with contractors. Maintain a current, signed W9 for each vendor noted above. A W-9 form provides their name, address and taxpayer information like a Social Security or Employer Identification number. Start requesting and gathering any missing information sooner rather than later.

Updates to Form 1099

As a reminder, in 2020 we saw the addition of Form 1099-NEC:

  • Form 1099-NEC (Non-Employee Compensation) is used to report payments made over $600 to nonemployees, independent contractors and vendors.
  • Form 1099-MISC (Miscellaneous) is used to report other miscellaneous payments, including royalties, rents, medical payments and payments to attorneys.  
  • The fourth quarter is the perfect time to make sure you have up-to-date W-9s on record for your 1099 recipient vendors, and request missing information. Review vendor expense coding so that you can properly prepare and file your 1099’s at year-end, avoiding mistakes and scrambling at the last minute. The filing deadlines come quickly after year end; be prepared to file accurate, timely forms for your vendors, and avoid costly fines and penalties. Filing your 1099s electronically is the easiest and most cost-effective method to meet your filing requirement. 
What to Do Now to Prepare for the 2022 1099 Filing Season

Check out our quick video for tips on this year’s 1099 filing. Learn about who needs to issue 1099s, who should receive a 1099 and what information you need to start gathering now.

Anything New in 2022?

In Form 1099-MISC, some boxes have been renumbered to accommodate a checkbox for the Foreign Account Tax Compliance Act (FATCA) Filing Requirement. 2021 Boxes 13-17 have now been renumbered to Box 14-18 as a result.

2022 1099-MISC Deadlines

  • Recipient copies – January 31, 2023
  • Paper filing – February 28, 2023
  • E-filing – March 31, 2023

Forms 1098, 1099-A, 1099-C, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-NEC, and 1099-S have been converted to a continuous use form – meaning the IRS does not anticipate annual changes going forward. There are no substantive changes to the form or instructions for the year 2022.

2022 1099-NEC Deadlines

  • Recipient copies – January 31, 2023
  • Paper filing – January 31, 2023
  • E-filing – January 31, 2023

Author: Laura Whitman, CPA

Contact Us

Contact Withum’s Outsourced Accounting Systems and Services Team if you have any questions or need assistance with 1099s.