Set up the IRS 1099 forms
The Internal Revenue Service (IRS) requires one or more versions of the 1099 tax form for payments to vendors. Copies of these forms must be sent to vendors annually on or before the last day of January. On your purchase documents, you can specify that the document is 1099 liable, and you can specify the 1099 code for the vendor.
Enable the feature to send tax data using the 1099 form
- Choose the
icon, enter Feature Management, and then choose the related link. - Find the following feature: Feature Update: Enable using 1099 forms to transmit the tax data to the IRS in the United States that you want to enable.
- In the Feature column, choose the three vertical dots, and then choose the Select More action.
- Select the checkbox for all the features that you want to edit, and then choose Edit List.
- In the Enabled for column, change the status to All Users.
- Choose the Yes button.
- Become familiar with the feature, and then choose the Next button.
- Specify the relevant Reporting Year.
- Define the setup data you use for IRS forms.
- By selecting the Create new setup field, you can choose to create a new default setup data in an app.
To transfer the existing data from the 1099 base application, select the Transfer Existing Data field.
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If you’re setting up [!INCLUDE[prod_short](../../includes/prod_short.md)] for the first time, choose Create New Setup to create the forms and associated setups. Afterward, you can fill in the appropriate fields in the forms and print them. If you’re upgrading and already have data for your 1099 form, you can choose Transfer Existing Data from the previous solution.
Specify how the IRS forms work with documents, because you can decide to choose the Collect Details For Line field. If you select this field, details are collected from the IRS 1099 Form Doc Line Details page for each of Calculated Amounts in the IRS 1099 Form Document. This option requires extra space in the database.
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If you don't select this field, the total amount is calculated without the details.
You can choose one or more options during setup.
- Protect TIN (Taxpayer Identification Number) to mask or protect TIN for vendors or for both vendors and your company. You can also choose not to protect TIN numbers.
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This protection option lets you print only the last four digits on your printing forms. The first five digits of the nine-digit number are truncated and replaced with Xs, following IRS regulations (example: XXXXX1234). This provides more security when sending documents via email, protecting the recipient from identity theft.
- Finish the setup.
Manual setup
If you couldn't finish the setup when you enabled this feature, or you want to modify or add configurations, follow these steps:
- Choose the icon, enter IRS Forms Setup, and then choose the related link.
- On the General FastTab, you can change the setup for the Collect Details For Line and Protect TIN fields.
You can also set up details for the email you want to send to your recipients:
- Change the subject you in the Email Subject FastTab.
- Change the email body in the Email Body FastTab. To edit your email body, use the rich text editor.
Close the page.
Reporting periods and forms set up
To configure reporting periods and forms, follow the steps:
- Choose the icon, enter IRS Reporting Periods, and then choose the related link.
- On the IRS Reporting Periods page, specify the time period that the report applies to in the Starting and Ending Date fields.
- To set up specific 1099 forms for this period, use the Forms action to open the IRS Reporting Periods page.
- On the IRS 1099 Forms page, specify 1099 form types, such as MISC, NEC, and so on. Because these form types have more than one source with different rules, you must set them up. To do so, run the Form Boxes action to open the IRS 1099 Form Boxes page.
- On the IRS 1099 Form Boxes page, set up sources for your form type using the No. and Description fields. You must fill in the Minimum Reportable Amount field based on the IRS instruction for this reporting year. The minimum reportable amounts can be populated whether or not you need to report a certain form box.
- Close the IRS 1099 Form Boxes page.
- Close the IRS 1099 Forms page.
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Every year, you must create a new reporting period. We recommend that you use the Copy Setup From action on the IRS Reporting Periods page, and choose the reporting period you want to copy from. With this process, all forms, form boxes, vendor setup, adjustment and form statement, except the form documents are copied to the selected period.
Vendors setup
On the IRS Reporting Periods page, you can run the Vendor Setup action to open the IRS 1099 Vendor Form Box Setup page. Use the page to map the form boxes to each vendor in the period. When you create a document for a vendor, [!INCLUDE [prod_short](../../includes/prod_short.md)] uses this setup to fill in the form boxes. To do so, follow the steps:
- In the Vendor No. field, specify the vendor number.
- In the Form No. field, specify the vendor number.
- In the Form Box No. field, specify the number of the 1099 form box.
You don't need to set up vendors manually, and you can use the Suggest action to run IRS 1099 Suggest Vendors automation. This action lets you choose different types of filters to apply to the vendors in the list. Afterward, you just need to add the default Form No. and Form Box No. for the list of vendors.
By choosing the IRS Setup action in the Related menu, you can do the same setup on the Vendor list page.
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This vendor setup is related to the specific period you configured on the IRS Reporting Periods page.
You might need to do some more setup on the Vendor card page. To do so, follow the steps:
- Choose the icon, enter Vendors, and then choose the related link.
Details related to 1099 reporting are on the Payments FastTab. You can find default values for the following fields, based on the IRS 1099 Vendor Form Box Setup configuration:
- IRS Reporting Period
- IRS 1099 Form No.
- IRS 1099 Form Box No.
To configure more required information, you can:
- Mark the Receiving 1099 E-Form Consent field to confirm that your vendor provided signed consent to receive their 1099 form electronically using email. You can't mark this field if a minimum email address isn't added for this vendor.
- To use different emails for delivering IRS related emails, you can enter this information in the E-Mail For IRS field. Otherwise, [!INCLUDE [prod_short](../../includes/prod_short.md)] uses the Email field.
- Mark the FATCA Requirement field to specify if the vendor is set up to require FATCA filing.
Print report configuration
To print the form substitute documents, you must use a few setups. For every single printing form, there's a Form Statement. These statements are already configured, but you can change or update them. To do so, follow the steps:
- To configure or customize the printed form, choose the icon, enter the IRS Reporting Periods, and then choose the related link.
- Use the Forms action to open the IRS 1099 Forms page.
- When you open the IRS 1099 Forms page for a specific form No., choose the Edit Statement action.
On the IRS 1099 Form Statement page, you can set up filters and rules that apply to the form document lines when you print. You can use the following fields to set up the 1099 form statement:
- Row No. – Specifies a number that identifies the line. The number is used as a form box number on the printed report.
- Description – Specifies a description of the 1099 form box on the printed report.
- Print Value Type – Specifies the print value type of the statement. If Amount is selected, then the amount calculated by the filter expression is printed. If the Yes/No option is selected, then either Yes or No is printed based on the Yes/No condition.
- Filter Expressions - Specifies the filter expression of the statement.
- Row Totaling – Specifies a row-number interval or a series of row numbers.
- Print with – Specifies whether amounts on the 1099 form box are printed with their original sign using the option Sign or with the sign reversed using the option Opposite Sign.
Close the page.
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Also, for every form you can set up the recipient instructions. These instructions are printed on the second page of the report layout. This is required for printing the form by the IRS because the instructions explain the meaning of each form box. To do so, on the IRS 1099 Forms page, for the specific form No., choose the Edit Instructions action to open the IRS 1099 Form Instructions page. On the IRS 1099 Form Instructions page, fill in the Header (it prints as a bold text) and Description fields (it prints as regular text).