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TAX1099.COM Announces 1099-NEC Availability For 2020 TAX Year

Thursday, 24 September 2020 01:20 PM

The new 1099-NEC form from the IRS will cause substantial changes to filing requirements for businesses paying independent contractors. Tax1099.com has prepared in advance to support businesses of all sizes in meeting the updated compliance requirements.

FAYETTEVILLE, AR / ACCESSWIRE / September 24, 2020 / Tax1099.com, an IRS-Authorized eFile service provider powered by Zenwork, Inc., recently completed programming to provide the new IRS Form 1099-NEC. Following the PATH Act of 2015, the IRS separated Nonemployee Compensation, Box 7, from the 1099-MISC form effective in the 2020 tax year. This change follows the earlier due date instituted by the IRS for the 2018 tax season.

"We have known for several years that this change was coming," said Ed Pratt, Chief Operating Officer of Zenwork, Inc. "Once the IRS escalated the due date for box 7 on 1099-MISC and W-2 filings, it only made sense to put the Nonemployee Compensation on a separate form. They have been working on that for the past couple of years, and we have been programming with that in mind during the same time period."

While the 1099-NEC may seem to be a new form, it is actually a return to a form used forty years ago, before the IRS combined the Nonemployee Compensation field onto the 1099-MISC form with other amount boxes, such as those for Rent, Royalties, and Gross Proceeds Paid to an Attorney.

Tax1099.com has used the past two tax seasons to prepare their IRS-authorized eFile capabilities for this change. One method of preparation has been to separate eFilings of box 7 on the 1099-MISC form from other boxes. While not visible to clients, Tax1099.com has filed this way in each tax season after the due date change.

"Our systems were basically ready for this two years ago," continued Pratt. "We only needed the final version of the IRS 1099-NEC form to complete the changes. Once we had that, we have been able to set up the NEC and MISC forms for manual filing and Excel imports. We are also currently working with our integration partners, such as QuickBooks, Xero, Bill.com, Zoho, and others to ensure a seamless filing season for our clients."

Tax1099.com has provided eFiling to the IRS and state agencies for over 10 seasons, working with hundreds of thousands of clients as well as millions of individual forms. Aside from the new 1099-NEC and the modified 1099-MISC forms, they provide filing for a range of forms, such as 1099-DIV, 1099-INT, 1042-S, W-2, and the 940 series of payroll withholding forms. Filing can be done through manual form entry for clients filing one to a few forms, or through imports and integrations for clients filing thousands or millions of forms.

About Zenwork: Zenwork, Inc., builds web-based tools designed to help businesses solve compliance issues. Whether filing information and employment tax returns with Tax1099.com, bringing companies and independent contractors together with Compliancely.com or helping truckers stay on the road with EZ2290.com, Zenwork leverages cloud-based tools to provide industry-leading solutions. Learn more at Zenwork.com.

Contact: [email protected]

SOURCE: Zenwork, Inc.

Topic:
Financing
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