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Copied from Accounting Today: Despite COVID-19, the Internal Revenue Service is continuing forward with moving 1099-MISC Box 7, “Non-Employee Compensation” to a new form, the 1099-NEC. This is effective starting this tax year, 2020, meaning that in January 2021, organizations will file this new form. The 1099-NEC is straightforward: Box 1 is for non-employee compensation and Box 4 is for federal withholding for that contract employee. To put it simply, income that the company used to report in 1099-MISC Box 7 will now be reported in 1099-NEC Box 1. State tax withheld, payer state ID number and state income is reported in Boxes 5, 6 and 7 on the 1099-NEC. ASC 842, IFRS 16, and GASB 87: The dramatic impact of the new lease accounting standards To comply companies and public entities will need to overhaul the information collected and how it is gathered and stored. SPONSOR CONTENT FROM And that's it: Those are the only boxes on the 1099-NEC. Who gets it According to the IRS, the people for whom an organization should use the new 1099-NEC are those with at least $600 in: Services performed by someone who is not an employee (including parts and materials) (Box 1); Cash payments for fish (or other aquatic life) that the company purchases from anyone engaged in the trade or business of catching fish (Box 1); Payments to an attorney (Box 1). The term "attorney" includes a law firm or other provider of legal services. Attorneys' fees of $600 or more paid in the course of the organization’s trade or business are reportable in Box 1 of Form 1099-NEC, under Section 6041A(a)(1); or, Each person from whom the company has withheld any federal income tax (report in Box 4) under the backup withholding rules, regardless of the amount of the payment. The new 1099-MISC All of the other income typically reported on a 1099-MISC will stay on that form, though Boxes 7 through 17 on the 1099-MISC have been shuffled. Box 1, “Rents,” and Box 3, “Other Income,” remain the same. More information on the MISC and NEC are on the IRS web site: www.irs.gov/instructions/i1099msc. Most accounting software likely does not yet support a "1099-NEC" flag for vendors, nor does it produce a 1099-NEC report. If a company has vendors that use 1099-MISC Boxes 1 or 3, they may want to consider inserting a “Display Name” flag such as "Vendor Name 1 - NEC" and "Vendor Name 2 - MISC," so that in January they can easily download the 1099-MISC CSV file and separate out the vendors who will go to the 1099-NEC. APIs that connect accounting software to 1099-NEC software may or may not be updated by January, so we suggest reaching out to the organization’s 1099 software tech support and ensuring that they have a plan for mapping vendors into the proper form. Other issues State requirements. Individual state filing requirements are as yet unknown. All of us in the 1099 world have our fingers crossed that the IRS will make the 1099-NEC part of the Combined Federal/State program. This decision is still in flux; and according to the IRS, will be made by late August. We anticipate new state 1099-NEC requirements arriving late in the year, making for a hectic January. Corrections for a prior-year 1099-MISC. So what if a company has to correct a Box 7 amount on a 2019 1099-MISC and the new 1099-MISC Box 7 no longer exists? The IRS says corrections to 1099-MISC box 7 for tax years 2019 and earlier will remain on the old 1099-MISC form. Due dates. The due date for 1099-NEC is Feb. 1, 2021, to both the IRS and to recipients. The new 1099-MISC due date is pushed back to March 31, 2021, for IRS e-filing, since it no longer contains Box 7. It is still due to recipients on Feb. 1, 2021.

This is what I would set up. I would ask one of my siblings to gift some money to my father by paying the rent or part of it. I would ask my other sibling to gift money to my father for food. I would ask the other to pay for medical expenses. I doubt there will be much more money left for me and I would also welcome a gift from my siblings. My siblings can gift me money because they are not receiving anything in return... I am doing whatever I am doing for my father and he is enjoying the benefits of my care.

I am so "by the book" the boss sometimes asks me for my IRS badge. In this case, however, I'm with Max and "family helping family." Why does everything have to have a tax consequence, and how would the IRS ever know? Gee, when our son took a semester off from school, we charged him room and board. I did not file a Sch E! (I put the money in a savings account and gave it to him when he got married a few years later. We just didn't want him to think he could live for free while he was working and not in school.) The whole multiple support thing could be a reason when people could take dependents, but now that a parent is worth a whole $500 there's not much for the siblings to lose just by giving the money and calling it a day. They could give some to dad and the rest to sis to come in under the gift tax limits.

prayers and peace be with you. Mother of God, pray for us sinners now and in the hour of our death.

Oh they may really hate the sister, and worth it to get rid of her.

Box 2 has a sub box which says something like ‘include amount rolled over ‘ .

A hectic January for us! That's become the new normal.

New York Form IT-2104 enables one to customize NY State and City (and Yonkers, etc.) withholdings so as, for instance, to declare oneself subject to the NYC tax on resident employees. ATX supports it.

Thank you. How the heck did I miss that?

Would love to hear from anyone who's been using this; I'm probably going to get it for next season. I'm especially curious about ease of use for clients, because I think it's going to be a hard sell for a lot of mine. Also, can you upload the organizers for the clients to just download? What things do you love/hate about it?

I am happy to hear this. I just purchased it when I renewed, but I'm so swamped that I don't have time to learn how to use it. I really wanted something that should be fairly easy for my clients and myself. 2020 has worn me out.

I’ve had 2 with missing refunds and Where’s my refund keeps showing processing for months. I called practitioner line and agent found the problem, was on their end due to virus. I think your situation warrants a call. I get right through with my secret strategy. OK, I’ll tell you. Call at 7:59am EST and get the recording. Keep hangIng up and hit redial, keep it up for a minute and you will be right up there in the queue.

I have been using it for two years now with about 70 clients subscribed to it. Of the 70, a fair number are senior citizens. Overall, my clients are very happy with it and find it easy to navigate. I've started to use this as my primary means of exchanging information with clients which has helped reduce paper. I also now post a copy of their successfully efiled return (client copy) to their portal for them to download and save which has significantly decreased the number of packets I have to mail. I'm very pleased with how it works. Hopefully CCH will continue to improve it.

I'm sorry Darlene, I'll hold you and your family in my prayers.

It's a tough thing to go through. It's been over 6 years for me. There's no easy way.

I thank you all for your prayers and thoughts and wonderful words - I sort of did not want to post as it is sympathy.. but it was a dilemma - and we all are family in taxes and we all go through this My prayers are with all of you that will also be in this position now , will or have been. Be Safe, Best, D

So sorry Darlene, do your best to be with your mom. Your presence will be a comfort to her, hold her hand and speak to her, she will hear you. You are a good daughter. My thoughts and prayers are for you and mom and family. Bill

I just saw this, Darlene. I am so sorry that you are going through this. I agree with everyone on here - be with your mom as much as you possibly can. I will pray for you, your family, the doctors and nurses, and especially your mom.

That sucks, I'm sorry. My mom is in the late stages of Parkinson's with dementia getting progressively worse. Death would be appealing at this point but she could last another 9 months.

I pray that goodness and love will follow your family through these times. Be strong and trust that peace will be delivered to your heart. Compassion, Elrod

I am so sorry, Darlene. I agree with everyone here. Your family comes first and everything else can wait. Spend as much time with her as you can, get extensions and take care of them when you are able. Hugs and prayers to you and your family. Bonnie

Darlene - we've followed you on the forum from time to time and perceive you to be an excellent lady, and that has an enormous passdown from your mother. Take whatever time you need to help her through this portal. This will not be the same as losing friends and acquaintances - you will not get up after the friends have gone and get back to business-as-normal living. You never get over losing someone this close - the only ease comes with learning to live with it. One thing that makes this easier to accept is it follows the natural order of life - the way God intended it. Members here really care for each other. I'll think of you this fall when I travel to Superior WI.

Prayers for your mom and you and her whole medical team and your whole family. The next time someone else is with her, file all 80 extensions in one big batch to take 15 July off the table. If you complete 1 or 8 or 80, that's great. But, you don't have to complete any this month. Go talk to your mother &/or hold her hand.

So Sorry, My prayers are with you. I agree put your mom first. Your business can wait you won't regret being with your mom.

Darlene, I echo everything Donna/Possi has said. If there is the smallest chance that she is still there when you arrive, go. Don't be circling the airport as I was. Work? Family is always, always first. You have just one mother. She needs you - you need her. Grace and peace, Margaret

I disagree, potentially. If the TP is using the 4K per month for home expenses (utilities, food, transportation) and some of that money is going to the benefit of the mother she is caring for, then I think it is a non-taxable event. I think the argument can be made that all of the siblings are sharing in the support and maintenance of the mother. The sibling who is taking care of her is giving her time and the other siblings are giving cash. This is just family taking care of family. I would treat this as non-taxable. There is a case to be made for the other siblings to take the dependency of the mother and the sibling at home with her under these circumstances. Again, this is all predicated on the sibling in the home using that money to care for the mother and the home they live in. If she is stashing the money for her retirement, then I think Danrvan is on the right track. Tom Modesto, CA

My whole nervousness about that is she will not be working any longer. That is the only income she is going to have - if she was working full time I would be in agreement about a gift.