What’s New for 1099’s
Due to the introduction of the 1099-NEC form for 2020, you will now be required to set your CertiflexDimension Ultra processing date to the last day of the calendar year before accessing the Form 1099 Generator. For example, to print 2021 1099 forms, set the current processing date for CertiflexDimension Ultra to be 12/31/2021 before selecting the option Vendor 1099 Forms. To print 1099 Forms for a prior year, use the report called Prior Period Federal Tax Forms.
What’s New in 2021:
Output Type – New Output Options:
The print options for use with preprinted forms have changed from previous tax periods. Due to new IRS 1099 specifications including the new “3-up” formats of the 1099-NEC, you now have selection options called Copy A Only – Preprinted Form and another option called Copy B, C and C2 – Preprinted Form.
The Copy A Only – Preprinted Form: This option separates the recipient’s name and address with spacing designed for the Copy A 1099 form sent to the IRS.
The Copy B, C and C2 Preprinted Form: This option is for forms that may be individually mailed and will force the recipient’s name and address on your preprinted forms to not have blank lines in the recipient label section. You will also want to use this option on the updated style of 1099-NEC forms to get the Copy B forms recipient’s name and address to fit in the new smaller 1099 window envelopes. You should not use this option when printing the Copy A 1099 forms that will be sent to the IRS.
Because the NEC went to a 3-up format, the Company name/address and phone number is in a tiny box made worse by window envelope. There is really no room to get the phone number and all four possible lines of company information and still get it to print in the window envelope in normal fonts. Copy A right justifies the phone number, since that is IRS copy and does not go into window envelope. Copy, B, C and C2 shrinks the font on the phone number to make it fit, but it does left justify it since it is going to show some of it in the window envelope no matter how we print it. If you are using all preprinted forms and like the alignment of the phone number on copy A better, you should be able to use copy A to print all forms since pre-printed forms are all aligned the same.
From the IRS – What’s New 2021 – on 1099’s:
Form 1099-MISC title change: The title for Form 1099-MISC has been changed from Miscellaneous Income to Miscellaneous Information.
Form 1099-MISC, box 11: Box 11 includes any reporting under section 6050R regarding cash payments for the purchase of fish for resale purposes, from an individual or corporation who is engaged in catching fish. For further information, see the instructions for box 11, later.
Form 1099-NEC, box 1: Box 1 will not be used for reporting under section 6050R regarding cash payments for the purchase of fish for resale purposes.
Form 1099-NEC, box 2: Payers may use either box 2 on Form 1099-NEC or box 7 on Form 1099-MISC to report any sales totaling $5,000 or more of consumer products for resale on buy-sell, deposit-commission, or any other basis. For further information, see the instructions later for box 2 (Form 1099-NEC) or box 7 (Form 1099-MISC).
Form 1099-NEC resized: We have reduced the height of the form so that it can accommodate 3 forms on a page.
Electronic filing of returns: The Taxpayer First Act of 2019 enacted July 1, 2019 authorized the Department of the Treasury and the IRS to issue regulations that reduce the 250-return requirement for 2021 tax returns. If those regulations are issued and effective for 2021 tax returns required to be filed in 2022, the IRS will post an article at IRS.gov explaining the change.