The IRS issued a new 1099-series form this filing season called Form 1099-NEC. It replaces Form 1099-MISC for reporting nonemployee, or subcontractor, compensation. The amounts previously reported in box 7 of Form 1099-MISC are now reported in box 1 of Form 1099-NEC.
This may seem like a small change, but a number of payors and recipients may be surprised to find box 7 on Form 1099-MISC is now reserved for “Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient) for resale.”
As always, please do not hesitate to contact Woodford Financial for assistance with your tax and accounting needs.