The IRS has released an update to Publication 1220. There are a few changes from the previous revision of the publication:
- Payee “B” Record- Form 1099-Q, Field Positions 663-772
- Field positions may now be used to record Coverdell ESA distributions when fair market value is reported
- New section (Form 1099-MISC NEC Filing Guidance) added to Publication 1220: After January 31, if a filer transmits a Form 1099-MISC reporting NEC and other Forms 1099-MISC that do not report NEC together with a single Payer A Record, the IRS may inadvertently treat each form transmitted with the Payer A Record as if it is subject to the Section 6721 penalty for failure to file by January 31, even though many of the forms might not be due until March 31. In this case, the IRS will send the filer a proposed penalty notice, to which the filer may respond and clarify the content of the transmission in question.
- Section 3 Secret Phase: FIRE accounts will now be required to establish a secret phrase to assist in resetting passwords for FIRE Systems (Production and Test).
About the Author
Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.More Content by Adam Rivera