Important Tax Changes for 2020
The IRS requires employers to issue a 1099 to independent contractors who are paid $600 or more during the year. In the past these contractors received a Form 1099-MISC. Be aware that starting in 2020, this form will no longer be used for independent contractors as a new form has been issued by the IRS. Employers will have to use Form 1099-NEC. You can view the new form here: https://www.irs.gov/pub/irs-pdf/f1099nec.pdf
All other requirements regarding the 1099 remain the same. The form must be provided to the contractor by January 31. In 2021 January 1 is a Sunday, hence the form is due February 1, 2021. Nonemployee compensation may be subject to backup withholding if the independent worker does not provide the employer with a taxpayer identification number, or if the IRS notifies the employer that the identification number provided by the worker is not valid.
IRS RETAIL PARTNERS
For taxpayers who, due to their financial circumstances, pay the IRS in cash, the IRS has announced that additional retail partners are now accepting cash payments for federal taxes. The cash payment option is available for individuals and businesses. In addition to the OfficialPayments.com and PayNearMe Company which allows taxpayers to pay with cash, payments can now be made at participating 7-Eleven stores, Ace Cash Express and Casey’s General Stores. There is a registration process required, a $1,000 payment limit per day and a $3.99 fee per payment.
Paying the IRS and a Slurpee all in one stop!