If you typically file any 1099-MISC forms (with box 7 completed), you will need to file Form 1099-NEC for tax year 2020. Data currently reported in Box 7 (Nonemployee compensation) of Form 1099-MISC for tax year 2019, will be required to be reported in Box 1 of Form 1099-NEC for tax year 2020. The Internal Revenue Service (IRS) and various states are requiring this form to be filed by the effective deadline, February 1, 2021.
We encourage you to prepare early. There will be extra work involved with this change. Additional forms may be needed.