1099-MISC and 1099-NEC updates for Tax Year 2021

  • 12 October 2021
  • 1 reply
  • 39 views

Userlevel 6
Badge

For tax year 2021, the IRS made minor changes to the 1099-MISC and 1099-NEC forms. Details of the changes can be found on the IRS website

Acumatica will implement these changes in upcoming versions of the software to assist with customer 1099 filings. There are 3 changes that impact Acumatica.

  • Form 1099-NEC sizing. Acumatica will reduce the height of the form to match IRS changes.
  • Form 1099-MISC, box 11. New use for box 11 includes any reporting under section 6050R, regarding cash payments for the purchase of fish for resale purposes, from a individual or corporation who is engaged in catching fish.
  • 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.

These changes will most likely be available in the following builds of Acumatica:

  • 2020 R2 U19 (mid-November)
  • 2021 R1 U17
  • 2021 R2 U3 (early-November)

Any changes to this plan will be posted to this page.


1 reply

Userlevel 6
Badge

In addition to changes on the paper forms, there are electronic filing changes as described on pages 11-12 of this IRS Publication 1220. These changes will be implemented in Acumatica immediately following the changes to the paper forms and will most likely be available in the same updates described above. 

Additional details will be provided as they become available.

Reply


About Acumatica ERP system
Acumatica Cloud ERP provides the best business management solution for transforming your company to thrive in the new digital economy. Built on a future-proof platform with open architecture for rapid integrations, scalability, and ease of use, Acumatica delivers unparalleled value to small and midmarket organizations. Connected Business. Delivered.
© 2008 — 2020  Acumatica, Inc. All rights reserved