Question: 1099 Forms will be changing for 2020. How will MIP be handling this?
NOTE: This is a developing issue and is subject to change.
Answer: Starting with Tax year 2020 form 1099’s will see major changes. The main change is that amounts that have historically been reported in the 1099-MISC form Box 7 will no longer be reported there. Instead they will be reported on a new 1099-NEC in Box 1 of that form. The existing 1099-MISC Box 7 will be repurposed as a checkbox.
This will result in several change in MIP and the 1099 process. There will be a new 1099 Form to process. Organizations that have vendors with MISC-07 data will now file the 1099-NEC.
This new 1099-NEC will require new forms and a separate filing process, possibly additional filing fees.
Organizations that have 1099-MISC info other than Box MISC-07 will continue to file their 1099’s normally.
This change will require modifications to the Vendor 1099 Information screen and additional options in the data entry screen. These options will be enabled in future release during the first half of 2020.
Until this release and changes in 1099 boxes continue to code your 1099 information the same way using MISC-07. Designs have not been finalized but it is highly likely there will be a mapping process in a new release that will convert existing MISC-07 data to 1099-NEC information.
Question: Does this affect the 2019 1099 filing?
Answer: No, the 1099 Filing is unaffected by this change. This change applies to information entered after 1/1/2020 that will be reported on the 2020 1099 forms.