2020's 1099-MISC changes and the new 1099-NEC form

What should I pay special attention to during 2020 year-end processing, in regards to this year's1099-MISC changes and the new 1099-NEC form?

When using Tool #990 Work With Accounts Payable Vendors to verify your 1099 vendor information, take special care that you are entering the correct 1099 box number from the 2020 1099-MISC form instructions; especially paying attention to box numbers that changed, including 7, 9, 10, 12, and 14. As an example, if your vendor reports Gross Proceeds Paid to an Attorney, that was previously box 14 and is now reported in box 10, so in order to report this correctly you must change the 14 to 10 on the vendor record before the January 6, 2021 deadline. Refer to the IRS website for further instructions on specific box requirements.

For the new 1099-NEC form, as of December 13 we have converted data (for tax year 2020 only) from the existing 1099-MISC table (TAXADD2) for non-employee compensation (field NONEMP) to the new TAXADD5 table for 1099-NEC forms. This means that any vendors with a 7 in the box number field in Tool #990, and current year information in the NONEMP field, have been converted, and will be in the tax file to receive a 1099-NEC form. To make manual adjustments to these amounts, use Tool #922 Update 1099-A, C, MISC, NEC Form Data as usual.

Read more in the 2020 Year-End Processing Guide