It’s time to begin thinking about 1099’s again, and our gurus at Eddye Dreyer Financial Services have made it easy for you by compiling all the resources you need, including this short video that highlights what has changed for the 2020 Tax Year:
Still have questions? Please contact us – we’re happy to help!
The most significant change this year is the reviving of the 1099-NEC for any non-employee contractors. In the oil and gas industry, this includes working interest holders. You will now report these payments (including lease payments and bonuses) in Box 1 of the 1099-NEC.
You will still use the 1099-MISC to report payments to royalty owners. Lease payments and bonuses are recorded in Box 1, and royalty income in Box 2.
- Keep a current Form W-9 on file for each of your vendors, to ensure you have the correct payee name, address, and TIN for the Form 1099.
- You must file a separate Form 1096 for the 1099-MISC and 1099-NEC.
February 1, 2021 – Due to IRS and to recipients
February 1, 2021 – Due to recipients
March 1, 2021 – Due to IRS (if paper filing)
March 31, 2021 – Due to IRS (if filing electronically)
And remember, you can contact us with any questions!