Businesses have a February 1st deadline to provide Forms 1099-MISC and 1099-NEC to recipients.
The Form 1099-NEC, Non-employee Compensation was created specifically to report nonemployee compensation. It had previously been reported on Form 1099-MISC.
Tax season will begin on February 12. This will allow the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.
All taxpayers are now eligible for Identity Protection PINs. The PIN is a six-digit code known only to the taxpayer and to the IRS. It helps prevent identity thieves from filing fraudulent tax returns. This is a voluntary program. You must pass a rigorous identity verification process. An IP PIN is valid for each filing season. You must obtain a new IP PIN for each filing season. The IP PIN tool is offline between November and mid-January each year. There is currently no opt-out option, but the IRS is working on one for 2022.
If you want an IP PIN for 2021 go to IRS.gov/IPPIN and use the Get an IP PIN tool. The PIN must be used when e-filing returns.
Taxpayers whose adjusted gross income is $72,000 or less may complete Form 15227 and mail or fax it to the IRS to get their IP PIN.
If you get a stimulus check that you shouldn’t have, the IRS expects you to return it.
The IRS expect is increasing partnership audits. The IRS expects to conduct 50% more partnerships in 2021 than in 2020.