The Pandemic of 2020 Created a Massive Increase in Freelancers
In 2019, there were 53 million freelancers in the US. Now, there are 57 million.
Whether you’re a veteran freelancer or started during the pandemic, beginning with the tax year 2020, you will receive Form 1099-NEC instead of Form 1099-MISC on January 31.
While freelancers will continue to use Form 1099-MISC to report miscellaneous income such as rent or payments to an attorney, 1099-NEC will record all independent contractor income including gig workers or self-employed individuals previously using box 7 of 1099-MISC.
What Does the Form 1099 Change Mean for Freelancers?
Each year, the largest number of unfiled and misfiled taxes reported by the IRS are always from those who must file Form 1099 or a combination of Form 1099 and Form W-2.
Form 1099 filers regularly make mistakes or forgot to file because it is by far the most complicated of all tax forms. Due to the new rules associated with Form 1099-NEC, there will be even more filing mistakes this year.
All freelancers, new and old, it is imperative that you complete your 1099 form in a correct and timely manner; the consequences of misfiling can be severe and long-lasting.
What if You Have Misfiled Form 1099 in the Past?
If you report your income on a 1099 form and are also experiencing tax debt because of misfiled or unfiled taxes, you may qualify for tax relief.
In 2010, the Federal Government forced the IRS to create a tax relief program for delinquent taxpayers known as the IRS Fresh Start Initiative. For those eligible, you could potentially cut your tax debt down by as much as 90%.
Click here to see if your economic situation qualifies you for a Fresh Start.
Don’t Delay, Apply for Tax Relief Today
You’ve probably heard the cliché: “don’t wait for this limited time offer.” When it comes to tax relief, there is no cliché. Speed is critical to successfully obtaining tax relief.
The IRS is currently experiencing an enormous backlog of unanswered and unread letters and refunds due to their temporary closure. To say that they are busy would be a gross understatement – they are completely swamped.
To catch up on lost time, the IRS has had no choice but to accept more tax relief offers than they would under normal circumstances. Now, more than ever, you must check your eligibility for tax relief while your chances for an accepted offer are high.
See if you qualify for the Fresh Start Program
We provide our tax relief survey as a FREE resource – see if you qualify today!
- Answer a few questions about your finances
- Qualify and be presented with a resolution
- Enroll in Fresh Start
You can click here and get connected with a verified partner of freshstartinfo.org.