1099-NEC &amp; 1099-MISC Course (Training Edition)

New Course! Learn to correct depreciation errors using Form 3115

In 2020, the IRS dusted off and re-introduced Form 1099-NEC, Non-employee Compensation. Form 1099-MISC was changed to remove its most commonly reported payment, self-employment income. If you're hoping to learn the rules for Form 1099-NEC and Form 1099-MISC or seeking practical 1099-NEC and 1099-MISC training, look no further! Overnight Accountant's training course covers everything needed to correctly report 1099-NEC, Nonemployee Compensation, and the most common 1099-MISC payment: Rents.

Once purchased, you own the course and can use it over and over again as a reference or a training tool for your employees. Best of all, our Form 1099-NEC Training Course dovetails with our Employee vs. Independent Contractor Training Course, making them a perfect pair for comprehensive instruction.

Why is Form 1099 Training Important?

The US Treasury believes (rightly so) that the primary cause of unpaid tax each year is small business owners failing to report self-employment income. Why? Because businesses and organizations fail to complete Forms 1099-MISC and Form 1099-NEC when required.

To combat this rampant non-compliance, the IRS added two Perjury-Trap / Intentional Disregard 1099 questions to all business returns in 2011. Then, in 2015, congress drastically increased the penalties for not filing 1099 forms when required (and adjusted them for inflation). In 2020, for example, the penalty for not filing a single 1099 can reach as high as $1,100! That's $1,100 for EACH 1099-NEC or 1099-MISC missed because someone ignored the rules.

For the first time in history, the disregard of 1099 filing requirements can force small businesses to close their doors forever. Nonprofits and government agencies are equally vulnerable. Those responsible for resulting penalties may face losing their job, accusations of negligence, or even potential lawsuits.

Another non-compliance hazard is the failure to withhold and remit Backup Withholdings from payees when required. The penalty for overlooking these rules can also kill a business. It’s equal to the amount you should have withheld. It's also a penalty for which responsible individuals can be PERSONALLY liable!

Why Overnight Accountant's 1099-MISC and 1099-NEC Training Course? Our Form 1099-NEC & 1099-MISC Training Course helps businesses, organizations, and professionals remain in compliance and avoid penalties. Best of all, when you purchase our course, you own it. Watch it over and over when you need a refresher or have a question. Make it part of your Employee Training Program.

Additional Materials: The course includes a ton of printable resources related to Form 1099-MISC and Form 1099-NEC. It also includes Workbook with Answer Guide, a Test and Answer Guide, and even a Frame-Worthy Certificate for students who complete the training.

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Lesson Listing

Here is a list of the lessons in this course and a brief description of what you'll learn in each lesson.

Introduction and Penalties
This lesson provides an overview of the course, the function, and purpose of Form-1099 MISC & 1099-NEC. It also details the most persuasive reason to file all required 1099s, especially 1099-NEC and 1099-MISC: Gigantic penalties! For more information on the IRS’s struggle to have businesses submit their 1099 forms, check out Brett’s article Form 1099-MISC Noncompliance (Can Literally Destroy Your Business).
Introducing Form 1099-NEC
Form 1099-NEC is not a new form. It was mothballed in 1983 when Form 1099-MISC started reporting Nonemployee Compensation. This lesson covers the history of Form 1099-NEC and the circumstances surrounding its 2020 reinstatement.
Who Must File Form 1099-NEC & 1099-MISC
Lesson Three teaches students which businesses and organizations are required to file Forms 1099-MISC and 1099-NEC and when they are required to do so. It also shares forms of payment not reported on information returns as well as 1099 requirements for those who own rental property.
Box 1: 1099-NEC - Nonemployee Compensation
The most common payment that requires IRS information reporting is those made to businesses and individuals for services. This lesson will review the many forms of nonemployee payments that require a Form 1099-NEC (and those that don’t). It also covers which payees must receive Form 1099-NEC (and those that aren’t).
Box 1: 1099-MISC - Rents
Many owners and managers are surprised to learn the many types of rent require the filing of Form 1099-MISC. This lesson digs deep in when rent must get reported and payees required to receive Form 1099-MISC.
What you need to complete the forms
To properly file Form 1099-MISC & 1099-NEC, you must obtain some critical information from each payee. This lesson teaches what info is needed and the importance of receiving it before paying any contractor for the first time. It also introduces students to Form W-9, the most common form used to obtain this information.
Preparing 1099-NEC
In this lesson, students learn the various copies of Form 1099-NEC and to whom and when each copy gets sent. Lesson Seven also covers the due dates for Forms 1099-NEC and provides step-by-step instruction for its proper completion. It also includes new electronic filing requirements for 1099-NEC filers.
Preparing 1099-MISC
In this lesson, students learn the various copies of Form 1099-MISC and to whom and when each copy gets sent. Lesson Eight also covers the due dates for Forms 1099-MISC and provides step-by-step instruction for its proper completion. It also includes new electronic filing requirements for 1099-MISC filers.
Preparing Form 1096
Lesson Nine wraps of the course by introducing Form 1096, the form which must accompany 1099 information forms mailed to the IRS. It covers all sections of Form 1096 and provides step-by-step instructions for its completion, and delivering it with 1099-MISC or 1099-NEC Forms to the IRS.

NOTE: The IRS was scheduled to reduce the e-filing threshold for 1099-NEC & 1099-MISC for 2022, which is mentioned in this lesson. However, they have decided to keep the requirement at 250 for 2022 with the expectation that it will change shortly.

All courses and articles are for informational purposes only and do not constitute tax advice. Taxes are complicated - do not act on course information without consulting a professional. Always refer to treasury regulation before making any tax decision. Read the full disclaimer.

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