Updated January 8, 2021

Beginning with tax year 2020, Form 1099-NEC (rather than Form 1099-MISC) should be used to report most nonemployee compensation of $600 or more in a year, including consulting services and payments to an attorney or law firm for legal fees for legal services. The Form 1099-NEC has an accelerated date of January 31 for both furnishing payee statements and filing with the IRS. Form 1099-MISC still should be used for certain payments, such as specified deferred compensation and payments to an attorney in connection with legal services but not for the attorney’s services (for example, in certain settlement agreements where the attorney is the payee or joint payee with the claimant). Due to the creation of the Form 1099-NEC, the Form 1099-MISC also has been revised and box numbers have been rearranged, but it retains its dates of January 31 for furnishing payee information and February 28 for filing with the IRS (March 31, if filing electronically). Districts should consult with their legal counsel or auditor with any questions. See the Instructions for Forms 1099-MISC and 1099-NEC here.

Please contact Heather Brickman or Barb Erickson with questions about Forms 1099-MISC and 1099-NEC.