1099 Pro Software Simplifies Reporting for Tax Year 2020

LOS ANGELES, Oct. 20, 2020 /PRNewswire-PRWeb/ -- TAX YEAR 2020 IRS UPDATES

The biggest change for 1099 Pro's Tax Year 2020 1099 software is the introduction of Form 1099-NEC Nonemployee Compensation. Per the IRS, filing entities are to issue 1099-NEC: 1) to someone who is not your employee and you paid at least $600, 2) if you made certain payments to an attorney, or 3) if you backup withheld federal income tax. Prior to this year, nonemployee compensation (NEC), was reportable on Form 1099-MISC Miscellaneous Income, Box 7, and had a separate reporting deadline when compared to other boxes on the 1099-MISC form. Moving forward, form 1099-NEC has a January 31st recipient mailing and IRS filing deadline. 1099 Pro encourages all filers to familiarize themselves with 1099-NEC now, and ensure that their accounting system is setup to accurately reflect NEC amounts versus other amounts still reportable on 1099-MISC.

Looking further ahead, the IRS has also indicated that the 1099-NEC is not expected to participate in the Combined Federal State Filing (CF/SF) Program. This exclusion from the CF/SF Program is a serious downside with the transition to the 1099-NEC form. Filing entities will most likely have to create state specific accounts and report 1099-NEC information to each individual state that they operate in – as opposed to the IRS forwarding this information to the states after receiving it. 1099 Pro's Enterprise software supports the creation of such state direct files, which often deviate from the IRS's standard format.

Additional 2020 changes include:

• Form 1042-S: Revised Chapter 3 Status Codes and backup withholding rate.
• Form 1098: Extended Box 5 Mortgage Insurance Premiums (MIP) reporting.
• Form 1098-F: New Box 8 code. The IRS also does not have any finalized reporting requirement, or deadline, for filing the 1098-F as of yet.
• Form 1099-MISC: Removed nonemployee compensation (NEC) and section 409A income reporting. Retitled Boxes 7, 9, 10, and 14. Renumbered Box 15a to Box 12 and Boxes 16, 17, 18 to 15, 16, 17, respectively. Eliminated Boxes 15a and 15b. Revised IRS paper and electronic filing deadlines.
• Form 1099-PATR: Retitled Boxes 5–11 and new Boxes 12 and 13.
• Form 1099-R: Renumbered after Box 11. Changes to distributions for qualified birth and adoption.
• Form 5498: New Box 14b code. RMD age increased from 70½ to 72.
• Form W-2: Employee TIN truncation (SSN masking) on employee copies. Increased social security wage base.

Both 1099 Pro's 1099 software and W-2 software feature a complete suite of features that are un-matched in the industry. Extensive user resources are available for every step of the filing season.

SAMPLE IMPORT FILES
Sample import files in Excel templates are provided for all form types. These files include dummy records, that illustrate how to format data, and header records, that auto-map data to the correct fields. Import Wizards automatically apply business rule validations to imported data—thus ensuring the highest likelihood of IRS/SSA data acceptance.

EXTENSIVE REPORT OPTIONS
All 1099 software and W-2 software products offer extensive report options. Some examples are: Control Totals reports for all box amounts, Error & Warning reports, Form Counts by Filer reports, and Unfiled Forms Summary reports (which list records by filing status and are invaluable to ensure that records are not overlooked during the filing season). Corporate Suite software features enhanced reports including Federal & State Balancing, State Quarterly and others.

PRINT OPTIONS
Print recipient tax forms directly to blank paper, preprinted forms or generate PDF digital copies. 1099 pro supports all standard IRS layouts and offers multiple custom or combined layouts. Customers can also outsource print, mail and electronic filing (eFiling) to 1099 Pro's competitively priced SOC I TYPE II Service Bureau.

ELECTRONIC FILING & REPORTING OPTIONS
1099 Pro's 2020 1099 software creates electronic files for direct submission to the IRS Filing Information Returns Electronically (FIRE) System and additionally and supports state direct filing. Additionally, 1099 Pro's 2020 W-2 software creates electronic files for direct submission to the SSA Business Services Online (BSO) site. Electronic filing via the Service Bureau is available for all software products at competitive rates. Corrections and reprints are also fully supported for all products.

TECHNICAL SUPPORT
Extensive resources are available to quickly onboard new users of 1099 software and W-2 software. Video tutorials demystify importing, printing, eFiling creation, Service Bureau eFiling and other tasks.

The 1099 Pro WIKI hosts sample import files for 1099-NEC, 1099-MISC and all other form types plus software installs, updates and more. LiveChat Support provides real-time solutions for all software products and services. Live phone support is available to registered and demo users with extended January hours.

ABOUT 1099 PRO, INC.
Since 1989, 1099 Pro, Inc. has produced industry-leading tax reporting software for 1099 informational returns, W-2, 1042-S, ACA 1095, and FATCA 8966 forms. 1099 Pro software imports data from Excel or text files and processes printing, electronic filing, and corrections. 1099 Pro's hosting and data processing facilities are SOC I Type II certified. 1099 Pro, Inc. also supports the Common Reporting Standard for AEOI reporting via CRS Pro software.

SOURCE 1099 Pro, Inc.

Related Links

https://www.1099pro.com