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For the tax year, 2021 of the form 1099-NEC, box 1 will not be used for reporting under section 6050R. Regarding cash payments for the purchase of fish for resale purposes. If you filed 1099-MISC with only Box 7 in the past, we most likely choose Box 1 - Nonemployee Compensation on the 1099-NEC. This is the most common situation and the only box most businesses will need to select for payment types. If you have other payment types, we'll need to file both forms.
For your convenience, we’ve listed the boxes from each form. To learn more details about each box, or if you’re not sure what payment types you might have made to contractors this year, review the IRS’s instructions for Forms 1099-MISC and 1099-NEC, or please consult your accountant. To learn more about the boxes on Forms 1099-NEC and 1099-MISC, check out this article: Understand payment categories for the 1099-MISC and 1099-NEC.
I've got articles here for more details about preparing your 1099 forms:
Let me know if you still have questions in preparing your 1099 form. Just leave a comment below and I'll get back to you. Have a great day ahead.
