Helpful Reminders And Tips To Know Before Filing 2021 Forms 1099

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27 January 2022

Helpful reminders and tips to know before filing 2021 Forms 1099

Due dates and extensions

As a reminder, filers must report payments for services of at least $600 on Form 1099-NEC, not Form 1099-MISC. Gross proceeds paid to an attorney and taxable damages should still be reported on the Form 1099-MISC, while most vendor payments should be reported on Form 1099-NEC in the appropriate box.

Electronic filing system

• Transmitter control code (TCC)
• Employer identification number (EIN)
• Company name
• User ID
• Password

While all filers may file information returns electronically, the IRS still only requires electronic filing for 2021 for more than 250 Forms 1099. The threshold for electronic filing is expected to decrease to 100 returns for 2022 and to 10 returns in the years after.

For calendar years after 2021, the reporting threshold has changed for Form 1099-K reporting for third-party settlement organizations. For 2021 reporting, the threshold is $20,000 in aggregate payments and 200 transactions. Beginning in 2022, the threshold is payments over $600 in aggregate and any number of transactions. While the change does not affect the current reporting season, filers must begin collecting necessary information now so they can properly report next year.

Document ID: 2022-0157

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