The APA submitted comments to the IRS to ask the agency to resolve duplicate information reporting on Form 1099-MISC, Miscellaneous Information, and Form 1099-NEC, Nonemployee Compensation.
Duplicate Reporting on Two Payment Types
These recommendations are aimed to eliminate duplicate reporting of two types of payments:
- Golden parachute payments. A nonemployee’s golden parachute payment is currently reported on both Forms 1099-NEC and 1099-MISC. The APA was clear that it was not asking the IRS to eliminate either Forms 1099-MISC or 1099-NEC. Instead, the APA asked the IRS to move Box 14 (excess golden parachute payments) on Form 1099-MISC to Form 1099-NEC.
- NQDC. When reporting compensation for a nonemployee in a nonqualified deferred compensation (NQDC) plan that does not meet the requirements of IRC §409A, the value of the plan is reported on Form 1099-MISC, Box 15. The Instructions for Forms 1099-NEC and 1099-MISC do not include guidance on whether the value of a NQDC plan that fails to meet §409A requirements is also reported on Form 1099-NEC, Box 1.
Not a member of APA? Check out the many benefits you get when you join!
Mike Linehan is the Assistant Manager of Government Relations for the APA.
