Changes To 2020 Form 1099

Changes to 2020 Form 1099

The IRS has a new Form 1099-NEC to report nonemployee compensation for tax year 2020. The IRS has also revised the Form 1099-MISC and rearranged box numbers for reporting certain income.

If your business has paid $600.00 or more in nonemployee compensation to an unincorporated entity in 2020, you will need to report the payment on Form 1099-NEC. If the payments are for legal services or for medical or health care, they must also be reported to incorporated entities.

If your business has paid $600.00 or more in rent (real property, machinery, or equipment) to an unincorporated entity in 2020, it will need to be reported on Form 1099-MISC. However, you do not have to report these payments on Form 1099-MISC if you paid them to a real estate agent or property manager.

A Form W-9 signed by the vendor should be obtained for each entity that you paid $600.00 or more and will need to report on a Form 1099-NEC or 1099-MISC. If possible, you should obtain a Form W-9 from each vendor that provides a service to your business, at the time of service. A Form W-9 can be downloaded from the IRS website at

The due date for filing 2020 Forms 1099-NEC is February 1, 2021. The due date for filing 2020 Forms 1099-MISC is March 1, 2021 for paper-filed returns and March 31, 2021 for electronically filed returns.

We will be glad to assist you with preparation and filing of your 1099s. We can also provide a spreadsheet to help input your information. If you would like for us to prepare your 1099s for you, we will need to receive your information no later than January 18, 2021. Please call us at 251-343-1012 if we can be of assistance.

The Most Misunderstood Phrase In Accounting

November 19, 2019

Andrew Finnorn | Staff Accountant | Published by Crow Shields Bailey

Throughout the recruitment process, you will hear firms speak of their dedication to a work-life balance. They are referring to the ability to balance the demanding work load of public accounting and life outside the office. It is used as a way to overcome the common belief that public accountants work 24/7. The most important thing to understand is that this challenge must first be overcome at the employee level, then assisted by the firm. This can be accomplished by answering three easy questions.

What are you balancing? The things that you value evolve as you progress through life. When you first enter the workforce as a young adult, time with friends and participating in hobbies are often your main focus. As changes happen, such as marriage or having children, you will find that your priorities and interest will also change. Discovering what is important to you is the first step in creating your ideal work-life balance.

When is the deadline? You will learn very quickly in public accounting that everything revolves around deadlines. There is always another deadline waiting around the corner, and understanding the workload is a key to success. Once you understand the “work” ahead, it allows you to build a schedule that can tackle the sometimes overwhelming workload, and allows for “life.” The anxiety that is felt with approaching deadlines can be mitigated by attacking the work load early. The more work that can be completed on the front end allows you to maintain your desired work-life balance.

Does this firm understand me? With the diversity of the workforce, firms must have an understanding of what is important to each employee. As addressed with the first question, each individual will have different priorities in life. You should search for a firm that aligns with your values. This requires getting to know the firm beyond an interview, and not getting caught up in a recruiting pitch. Current employees and their experiences can often give you an insight into the firm’s values. Look for an opportunity during recruiting events to interview the employees.

As a result of the public’s perception of accountants working 80-hour weeks, the work-life balance has become a point of emphasis for recruitment platforms. Is a work-life balance truly accomplished at the firm level? Yes, they play an important role, but they are only part of the equation. Your understanding of the balancing act and the ability to schedule ahead will allow for the ideal work-life balance in your career.



Kristi Daughtery Wins Best CPA in 2019 Nappie Awards

CSB is proud to announce that our very own Kristi Daughtery received the 2019 Nappie Award for Best CPA! We can’t think of anyone more deserving and are glad the city of Mobile and those on the Eastern Shore agree. We appreciate the thousands of Lagniappe readers in Mobile and Baldwin Counties who voted for their favorite hometown heroes and recognized a member of the CSB team for the second year in a row. Kristi is the definition of what “reaching beyond the numbers” means and she inspires us all to be the best we can be. Congratulations to Kristi!

Accounting Students – Should You Choose Tax or Audit?

June 19, 2019

Caitlyn Grimme, CPA | Supervisor | Published by Crow Shields Bailey PC

One of the biggest decisions an accountant will face is the choice to specialize in tax or audit.  While this decision may come easily to some, for others it can be the most difficult choice of their career.

Tax vs. Audit – What’s the Difference?

While both are accounting professions, the tax and audit paths can vary greatly.   In the tax division, your day will focus on trying to reduce the client’s tax liability.  Meanwhile, the purpose of an audit is to express an opinion as to whether the financial statements of a company are free from material misstatement. As such, auditors devise testing measures and scopes to evaluate the information provided by the client in order to express an opinion.  Additionally, auditors may also work on other forms of attestation engagements such as reviews and compilations, which provide limited to no assurance regarding the financial statements.

Both tax and audit are rules and research based. Tax professionals must comply with rules set by the Internal Revenue Service and The U.S. Securities and Exchange Commission. Auditors must also follow generally accepted accounting principles (GAAP), generally accepted auditing standards (GAAS), additional SEC and PCAOB guidelines if required, as well as certain industry-specific guidance.  However, while auditors rely on research and rules, they also rely heavily on auditor judgment.

Audit professionals must have strong interpersonal communication skills, as you are onsite communicating with clients on a daily basis.  Tax professionals typically work in the firm office and might not communicate directly with a client for several months.

Both career paths are now heavily dependent on computer and software applications, so regardless of your choice, proficiency in technology is important.

There is conflicting information from online sources regarding differences in pay for auditors vs. tax professionals.  Some sites state that lower level audit staff jobs are more plentiful than tax staff positions starting out and might offer higher initial pay.  However, other sites argue that tax professionals have higher initial earning power. At the end of day, I would recommend choosing the path that you are more passionate about, as the earning potential doesn’t appear drastically different for either course (note this may vary by firm, industry specialization, etc.).

Are There Pros and Cons to Each Path?

Although not every firm is the same, here are a few standard pros and cons:



  • Travel – audit professionals typically spend less time in the firm office than tax professionals. Whether the travel is local, regional, or national can depend on the specific accounting firm.  For instance, audit professionals at large regional or national firms might spend a significant amount of time traveling while professionals at local firms might travel primarily to clients in their area.  Independent of firm size, boutique firms specializing in a specific industry might travel more than others.  If you like a varied day/routine with occasional to frequent travel, audit might be a good fit for you.
  • Steady work flow – while the tax profession is driven by statutory deadlines, audit work is more consistent and constant throughout the year. There are still deadlines in the audit world, but these deadlines (which are usually set by governing bodies such as a board of directors or third parties such as bankers or bonding agencies) are usually spread more evenly throughout the year.
  • Teamwork – audit engagements typically consist of an “audit team” with a partner, manager/in-charge, and staff member, at the least. This environment yields itself to mentorship and in-the-field hands-on learning for those new to the profession.
  • Client interaction – with audit, a large portion of the engagement is performed “in the field” (i.e. at the client’s office). As a result, staff will be interacting with client personnel ranging from accounting clerks to the CEO on a daily basis.


  • Travel – while travel might appeal to some, it might be a significant deterrent to others. It is important when interviewing for an audit internship or staff position to question the firm’s expectation regarding amount of time spent traveling, as it can range by firm size or specialization as noted above.
  • Professional skepticism – attestation engagements require independence from the client. This can be a problem for professionals who get too involved in order to “help” the client, as it can lead the auditor to making management decisions for the client and impairing independence and objectivity.



  • Deadline-driven – while the time surrounding tax deadlines can typically be very busy for CPAs in the tax department, there is usually a lull between these storms that provides plenty of time for vacation, continuing education, professional development, etc.
  • Independent work – while the audit department works on a team, tax professionals have more opportunity for independent work. While there is always someone available for questions if needed, if you prefer to work on projects on your own, then tax might be a better fit.
  • Fast turn-around – while audits may drag out for weeks or months, tax returns are usually much smaller individual engagements which lead to quicker turnaround. If you are someone who likes to quickly cross projects off your list, this might be the path for you.
  • Exposure – although you are not in the field with the client on a daily basis as in auditing, tax professionals receive more exposure to different clients throughout the year. For example, an auditor might work directly with 10-15 clients a year, while a tax professional might deal with 100.


  • Deadlines – while the lull provided after a deadline is nice, the weeks and months leading up to a deadline require overtime work by tax professionals, which dissuades many from joining the profession.
  • Client exposure – since tax professionals work primarily in the office, they do not interact face-to-face with clients daily. This could be preferred if you tend to be more introverted, but extroverts might find this arrangement challenging.

I’m Still Undecided – What Can I Do?

If you are still unsure which path is a better fit, try out some of the following:

Apply for an internship – internships are a fantastic way to learn the basics of both disciplines.  Most large firms will offer internship experience on a tax or audit basis which allows full immersion in either path.  Smaller local firms may offer internship opportunities with exposure to both tax and audit in the same internship round (typically a “busy season” internship from January through April 15th).

Online forums – in the age of technology we live in, information is at the tips of our fingers, literally.  There are several sites with forum posts or resources surrounding this subject.  Check out the CPA exam forum on or the AICPA career guidance section, just to name a few.

Ultimately, the career you choose must be the best fit for you.  What are pros for one person might be cons for another (ex. frequency of travel engagements).  However, as long as you know yourself and what is most important to you, you will make the right decision.  Feel free to contact us to set up a job shadowing appointment if you would like to get a glimpse at a normal day for tax and audit professionals.


CSB Community Service Spotlight

February 26, 2019 – Crow Shields Bailey (CSB) believes that living out our values as a community-focused firm begins with taking care of each other. CSB leadership fosters an environment that allows ample opportunities for each team member to get involved throughout our local community, and support our fellow teammates in their personal passions. This community-focused approach inspires us to better impact each other, and our Gulf Coast neighbors.


Core Values Grounded in Service

Innovation, Teamwork, Integrity, Client Focus, Community, and Work-Life Integration represent our core values and lay the foundation of CSB’s culture. Our dedication to living out these values is reflected in each team members’ personal commitment to fulfill our mission to one another, our clients, and community. This begins with our service focus.


2018 Service Reflection

Last year we decided to select a charity that our team would focus most of our service efforts on for the year. To ensure this was a value-aligned organization our team was passionate about, CSB voted on three worthwhile causes, and Light of the Village was selected to be our 2018 philanthropic focus.

Light of the Village is a “front-line, hands-on Christian ministry designed to share Christ’s message of faith, hope, and love to the inner city.” This nonprofit organization is located in one of Alabama’s most violent and poverty-stricken neighborhoods, and provides a safe place for children to visit after school to receive tutoring and a hot meal, as well as play games and participate in Bible study.

For the past six years, our team has participated in the annual Christmas Party that Light of the Village hosts for the children. This rewarding event is anticipated each year, allowing our teammates to spend quality time getting to know these children and watching each of them select a gift at the end of the night. Since our team is familiar with Light of the Village’s impact on our local community’s youth, it is fitting they were selected as our inaugural charity.

Along with Light of the Village efforts throughout the year, CSB also supported the Eastern Shore Chamber of Commerce and its various charities, such as the Ruff Wilson Youth Center, Fairhope Rotary Youth Club and Spanish Fort Public Library. We also supported Lifelines Counseling Services, NEST of Mobile, American Cancer Society, Coastal Conservation Association, Mobile Baykeeper, Junior Achievement, Fuse Project, and more.


2019 Service Commitment 

Light of the Village has been selected as our charity of the year again for 2019, and we look forward to making another significant impact through this continued partnership. As part of its Middle School Job Readiness Program, we will be assisting with four different events this year: a resume workshop, job application workshop, mock interview exercises, and inviting participants for job shadowing days at our office. After our busy season, many team members will also be volunteering regularly for various programs such as reading, tutoring, and serving meals.

In addition to the continued Light of the Village outreach, our team is also looking forward to supporting the upcoming Junior Achievement Bowling Classic, and mentoring students with lessons on financial literacy.

With any industry, it can be easy to get caught up in the day-to-day routine of meetings and marking items off the checklist, but our team has found that taking time to serve others has become one of the most rewarding aspects of working at CSB. Working for a company that values community service and encourages its team members to make a positive impact to improve our community is what makes our work more fulfilling, and will always be a main priority in our company culture.


February 8, 2019 – Crow Shields Bailey PC (CSB) is pleased to announce Gina McKellar, CPA, CVA has been elected to serve as the firm’s new Managing Shareholder effective January 2019.

Gina assumes this role from long-time Managing Shareholder, Kenny Crow, who has served in this position since 1986 and will now lead CSB’s business consulting. Gina looks forward to guiding CSB’s growth, strategy and vision by continuing in Kenny’s footsteps to build the Gulf Coast’s premier full-service accounting and consulting firm.

“Gina’s leadership experience makes her an ideal fit to continue guiding our firm’s strategic growth plan,” said CSB former Managing Shareholder Kenny Crow. “She is well-respected by her peers and exudes resilient problem-solving skills, even in the face of adversity. Our firm has been preparing for this successful transition, and we can’t wait to witness the positive impact she will bring to CSB’s future success.”

With more than 30 years of experience in public accounting, Gina has been part of the CSB team since 1997, and was admitted as the firm’s first female shareholder in 2002. Gina has exemplified leadership as the firm shareholder responsible for overseeing the success of its human resources department. Among her many accomplishments, Gina was recently awarded The Lagniappe 2018 Nappie Award for Best CPA. She specializes in accounting and auditing, tax, business valuations, tax planning, business consulting and litigation support.

“Crow Shields Bailey PC is proud to serve our clients as their trusted advisor, and we look forward to growing with them and our Gulf Coast community,” said Gina McKellar.

CSB’s team and management congratulate Gina, and remain dedicated to ensuring a seamless transition for the firm.

Gina is married to Charles McKellar and mother to three grown children Brian (Ellie) Russell, Bradley Russell and Thomas Russell. In her free time, Gina enjoys running and gardening. She currently serves as President of the McGill-Toolen Catholic Foundation and on the Finance Council for Our Lady of Lourdes Parish.

For more than 33 years, Crow Shields Bailey PC has served as the Gulf Coast’s premier full-service accounting and consulting firm by reaching beyond the numbers. Headquartered in Mobile, with locations in Daphne and Gulf Shores, CSB’s dedicated team of financial experts is committed to helping its clients maximize their wealth and reach their financial goals. Through its affiliation with the RSM US Alliance, CSB has the resources of a national accounting firm matched with proven local leadership the community has come to know and trust.

Crow Shields Bailey Spotlights Client David Rasp And His Restaurants

September 27, 2018

Emilee Shuler | Marketing & HR Assistant | Published by Crow Shields Bailey

Humble Beginnings

“Born here, been here, still here.” David Rasp takes pride in being a homegrown, local business owner. On November 6, 1998, he opened his original Heroes Sports Bar & Grille location at 273 Dauphin St. in Downtown Mobile. Previously, this address had been home to his own favorite sports bar, Big Kahuna’s Sports Café. Having no experience in the restaurant industry, Rasp simply wanted to recreate Big Kahuna’s after they closed with a small menu of bar food.

As time went on and Rasp began to find his footing, the menu grew as customers expressed their ideas, which eventually became essential Heroes favorites. For instance, employees of Bender Shipyard were responsible for bringing about the shrimp poboy! Rasp began to realize that in order to be successful he had to view everything from the perspective of the guests, even the smallest details. He also realized the importance of great food at a great price.

Moving On Up

Eight years after opening the original Heroes location, Rasp opened The Royal Scam in order to serve hotel guests along Royal Street. The Scam is a casual fine dining restaurant that aims to please many different tastes. They serve a variety of delicious entrees, ranging from Filet Mignon to Shrimp and Grits. This year, they won the Nappie Award for Best Gumbo!

Heroes West Mobile opened in June 2011. Between 2016 and 2017, the West Mobile location went from the third best seller of all three stores to the first following extensive renovations. The renovations addressed parking, drainage, and general aesthetics. Heroes West Mobile is geared towards families, college students, and those who know and love the downtown location, but live too far away to frequent it.

The Heroes menu is now very broad with a wide variety of delicious choices. It has come a long way from just a small menu with bar food!

Overcoming Obstacles

As with any restaurant, the biggest obstacle David Rasp has faced is the ongoing challenge of staffing. Turnover rates for restaurants are notoriously high. Rasp has found that the best solution to combat this issue is to create an environment where employees like to work.  A few of the things that keep his employees happy include rewards, benefits, and PTO plans for hourly personnel.

Another challenge faced by Rasp and other local restaurants is the influx of corporate chains. For so many years, he was fighting these battles alone. Now, he has a fantastic upper management team that includes Jessica McGee and Richard True. While Rasp has great teams at each individual store, he relies heavily on Jessica and Richard’s help to ensure that all three stores run smoothly.


Regardless of the differences in atmosphere or client base, each store has an employee-friendly culture and a team that puts the guests first. In order to accomplish this, management hires the best people in the business and works hard to retain them. Rasp feels that he has excellent team players who wear multiple hats, which creates a dynamic work environment.

Being involved in and giving back to the community that has helped make him successful is also very important to Rasp. He supports many local charities and organizations, such as Ronald McDonald House, Camp Rap-A-Hope, American Cancer Society, and Mobile Arts Council.

Being on the Gulf Coast, Rasp emphasizes the fact that we are blessed with an abundance of fresh seafood. He also feels blessed to be embraced by the community. Over the years, the guests have not only framed the current menus of his restaurants, but also the atmospheres and cultures individual to each store. The original Heroes location has many Mobile sports-related photos and memorabilia lining the walls. Rasp says that he and his stores are “so Mobile, it’s crazy!”

Relationship with CSB

David Rasp and Jessica McGee began their relationship with CSB through our Businesses Getting Results (BGR) program. While he already knew our Managing Shareholder, Kenny Crow, Rasp says that his involvement in BGR was one of the main reasons he decided to hire CSB. His favorite takeaway from those lessons was to work “on your business versus in your business.” He says that BGR pushed him to be better at delegation and many other necessary elements of running a business.

According to Rasp, “CSB is not just a great CPA firm; they offer so much more.” He says Shareholders Kenny Crow and Ryan Damrich are “great advisors” and La Nette Caskey’s QuickBooks training has been vital to the operation of his businesses. He is grateful to have a great relationship with many of the CSB team members. Rasp also says that he admires Kenny Crow’s “coach-like mentality” and he likes to think that he, too, possesses that mentality when it comes to running his businesses.

It is safe to say that David Rasp has created something special for the community. This is apparent for many reasons, including the fact that the people of Mobile have voted Heroes Sports Bar & Grille Best Sports Bar multiple times, and The Royal Scam has won multiple Nappie Awards for various categories. It is also apparent when you realize the close relationships Rasp and his team members hold with the regular guests. Some frequent the restaurants every day, some every weekend during football season. No matter which restaurant you visit, you will likely leave in a better mood than when you arrived. For more information, visit or

Crow Shields Bailey Shareholder Gina McKellar Awarded Best CPA in Local Nappie Awards

July 18, 2018—Crow Shields Bailey PC (CSB) is proud to announce that Gina McKellar, CPA, CVA, has been awarded The Lagniappe 2018 Nappie Award for Best CPA. This well-deserved accomplishment recognizes top local businesses, professionals, and places voted by Gulf Coast readers. With more than 30 years of experience in public accounting, Gina McKellar is CSB’s tax and human resources shareholder, who specializes in accounting and auditing, tax, business valuations, tax planning, business consulting, and litigation support. We invite you to learn more about Gina’s career path, industry passion, and perspective on how the Gulf Coast’s revitalization continues to impact CSB clients’ personal and business financial goals.

Lifelong Passion for Accounting

Gina was born and raised in Mobile, and has been passionate about math since her earlier school days at McGill-Toolen Catholic High School. This love of numbers is what originally attracted her to the accounting profession, but technology keeps her interested in the shifting ability to impact businesses. “The field of accounting is rapidly changing with the rise of technology, and CSB has made it a priority to integrate new practices as the industry shifts towards digital trends. As this change happens, our accountants look forward to taking on a larger role in consulting for our clients, versus simply preparing tax returns.”

Problem Solving

Although her love for math originally led Gina to an accounting career, her desire to be a problem-solver for her clients’ unique demands is what keeps her motivated on a daily basis.

Gulf Coast Progress

Gina believes that as the Gulf Coast continues to flourish, so will CSB’s clients, employees, and community impact. “This is an exciting time to be part of the development across the Gulf Coast, and help our clients continue to grow as a result of local revitalization and innovation.” Gina is married to Charles McKellar and mother to Brian, Bradley, and Thomas Russell. In her free time, she is an avid runner and gardener, and currently serves as McGill-Toolen Catholic Foundation president.

Our CSB team is proud to work with passionate team members like Gina and congratulates this caring and talented professional on her well-deserved Nappie Award.