New form: 1099-NEC, Nonemployee Compensation January 2021 Tax News

Beginning in tax year 2020, payers must complete the new Form 1099-NEC, Nonemployee Compensation to report any payment of $600 or more to a payee if the following conditions are met:

• You made the payment to someone who is not your employee.
• You made the payment, for services or fish purchases for cash, in the course of your trade or business (including government agencies and nonprofit organizations).
• You made the payment to an individual, partnership, estate, or, in some cases, a corporation.

A paper or electronic copy of the form 1099-NEC must be filed with FTB directly, even if you filed it with the IRS. For 2020, the due date is:

• February 28, 2021 for paper
• March 31, 2021 for electronic submissions

You may request an extension to file electronically by submitting FTB Form 6274A. Visit our webpage, Information returns for more information including mandatory electronic filing requirements.