Spotlight: 1099-NEC Changes for Tax Year 2021 and Tabs3 1099 E-file

January 2022    Tags: 1099s, Accounts Payable, Trust Accounting

The Form 1099-NEC has changed for Tax Year 2021. Don’t want to deal with forms this year? Try Tabs3 1099 E-file!

1099-NEC Changes for Tax Year 2021

The IRS changed the requirements for Form 1099-NEC submissions for tax year 2021. The following is a brief overview of these changes:

• The format of Form 1099-NEC has been updated for tax year 2021.
  • The height of the form has been reduced so it can accommodate three-per-page forms.
  • Only one address line is printed for the recipient’s street address.

As a result of these IRS changes, we have made changes to Trust and AP in Version 2021. You must update Trust and AP to Version 2021 (Build 20.6.6) or later before printing Form 1099-NEC for tax year 2021; these changes will not be added to Version 2020 or prior. To update, in the Quick Launch, search for and select Check for Updates. For more information on changes to tax year 2021, see Knowledge Base Article R11893, “IRS 1099-NEC Changes for Tax Year 2021.”

Tabs3 1099 E-file

Tabs3 has partnered with Nelco to provide Tabs3 E-file, a complete solution to filing your Forms 1099-MISC, 1099-NEC, and 1096. You don’t need to deal with the forms, envelopes or postage, or configuring your printer at your office; instead, simply upload your data to the Tabs3 E-file portal and they can be electronically filed, printed and mailed, or emailed on your behalf, saving you time and manpower every year.

To transmit forms to the Tabs3 E-file portal

1. In the AP Quick Launch, search for and select “Tabs3 1099 E-file.”
2. Optionally enter a Minimum YTD Amount other than 600.
3. In the Trust Transactions section, optionally select Merge transactions where Firm is the payer and/or Include transactions where Trust Account is the payer. (Note: Tabs3 E-file can also be started from Trust, with similar options.)
4. Click Transmit.
   1. Log in with your Tabs3 E-file account information.
   2. In the Forms in Progress section, select the desired options and click Next.
   3. Verify your information is correct and click Next.
   4. Enter your payment information and click the Pay & Submit button.