Well, sort of. It's still in use. However, starting in tax year 2020, non-employee compensation is reported on a new form...
Beginning in tax year 2020, non-employee compensation is reported on a new form... the 1099-NEC. The 1099-NEC form is much simpler than the 1099-MISC form. There are basically only two amount boxes, and most filers will only use Box 1.
The changes this season are bound to cause confusion for filers. If, for example, you paid an attorney $600 or more for services rendered, that is reported on form 1099-NEC. If you paid an attorney as the result of a settlement, that is still reported on form 1099-MISC. Also, monies paid as rent are still reported on 1099-MISC. In some instances, the filing of both forms could be required for a single recipient. Adding to the bedlam, the IRS has renumbered some of the boxes on form 1099-MISC. Filers should double-check to ensure amounts end up in the expected boxes.
Unlike form 1099-MISC, form 1099-NEC is not included in the Combined Federal/State Filing Program (CF/SF). That means that businesses will have to file directly with their state, or use the services of a vendor, such as Fantaxtic, which can do this for them.
The IRS levies heavy fines for failing to file required 1099s, as well as for incorrect information reported. The penalties range from $50-$280 per 1099 form. That's not a typo. Let's say you have 100 forms to file. If they are all filed incorrectly, you could be fined between $5000 and $28,000! Here are some steps you can take to protect your business: