As the information return tax filing season approaches, businesses encounter the complex challenges of 1099 reporting. IRS data reveals that for the tax year 2022, over 72.3 million Forms 1099-NEC and more than 43.8 million Forms 1099-MISC were filed. This represents a significant increase of nearly 30 million form submissions compared to a decade ago, when Form 1099-MISC was also used for non-employee compensation reporting. From 2021 to 2022, there was an increase of over 12.5 million in the filing of Forms 1099-NEC alone.
With the complexities of collecting vendor information and ensuring accurate filings, the 1099 reporting process can be daunting. However, some industry experts suggest that the adoption of automation technology may offer a promising solution, enabling businesses to navigate these challenges more efficiently and streamline their reporting efforts.
To dig deeper, visit the original article on the Thomson Reuters blog.