Read below about important national regulatory and compliance updates for the new geographic targeting order and 2020 tax form revisions.
The new Geographic Targeting Order (GTO) is effective from May 1, 2020 to November 5, 2020. The terms and requirements of this new GTO are identical to the prior GTO received in November 2019 with one exception: Part IV of the CTR, Field 45, should be completed with “REGTO020”. You can read more about the new GTO update here.
2020 Tax Form Revisions
The new 2020 tax form revisions include updates to 1099-NEC. In a move that will impact business owners and tax professionals across the nation, the IRS released the 2020 Form 1099-NEC. The new form replaces Form 1099-MISC for reporting non-employee compensation (Box 7), which shifts the role of the 1099-MISC for reporting all other types of compensation. As a result of the new 1099-NEC and redesigned 1099-MISC, the overall process for reporting non-employee compensation is changing for the 2020 tax year.
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