Set up and use the IRS 1099 form

Wichtig

This article describes the legacy IRS 1099 workflow, not the IRS Forms app. The replacement was introduced as a feature update in version 24.0 and automatically enabled in version 27.0. For the replacement workflow, go to Introduction to the IRS 1099 tax forms. The legacy procedures below apply to versions where that workflow is still available.

Use the legacy IRS 1099 workflow in [!INCLUDE[prod_short](../../includes/prod_short.md)] to identify reportable vendor payments, print forms, or export filing data. Confirm filing requirements and deadlines with the IRS or your tax adviser for the reporting year.

Set up legacy 1099 reporting

Before you start using [!INCLUDE[prod_short](../../includes/prod_short.md)], you must set up 1099 Form Boxes and Vendors as 1099 liable. The most common 1099 codes are already set up for you, and they're defined on the 1099 Form Box page, where you can also add new 1099 codes. Before you prepare your reporting for the new year, you must first update your [!INCLUDE[prod_short](../../includes/prod_short.md)] to handle the new requirements.

Update the 1099 form boxes

To support form changes, the legacy workflow offers Update Form Boxes to update codes and other requirements. For historical changes, go to Regulatory 1099 format changes and details.

  1. Choose the Tell Me feature icon, enter 1099 Form Boxes, and then choose the related link.
  2. Choose the Update Form Boxes action.
Hinweis

Don't fill out the 1099 form boxes manually. Instead, select Update Form Boxes.

Wichtig

Running the action Update Form Boxes makes reporting for the previous year impossible, since some boxes change their meaning. Make sure that you have done all your reporting for the previous year before you update the form boxes to prepare your system for reporting for the new year.

Set up a vendor as 1099 liable

  1. Choose the Tell Me feature icon, enter Vendors, and then choose the related link.
  2. Open the relevant vendor's card.
  3. On the Payments FastTab, in the IRS 1099 Code field, choose the relevant IRS 1099 code.
  4. Repeat these steps for each additional vendor.

Documents and entries

Process a document as 1099 liable

  1. Choose the Tell Me feature icon, enter Purchase Invoice, and then choose the related link.
  2. Create a new entry, and then, in the Vendor Name field on the Purchase Invoice header, specify a vendor with the relevant IRS 1099 code.

  3. Optionally, on the Shipping and Payment FastTab, in the IRS 1099 Code field, override the default value with another code, or delete it to have transaction without an IRS 1099 code.

  4. Enter all information into the required fields for purchase invoice and post the document. [!INCLUDE [tooltip-inline-tip_md](../../includes/tooltip-inline-tip_md.md)]

The IRS 1099 Code field is prepopulated with the value from the vendor card.

After the document is posted, you can go to the Vendor Ledger Entries list page and find that the IRS 1099 Code and IRS 1099 Amount fields are automatically populated.

Tipp

Instead of a purchase invoice, you can also use a purchase order as the document, but in this case, the IRS 1099 Code field will be on the Invoice Details FastTab.

Correct posted entries

  1. Choose the Tell Me feature icon, enter Vendors, and then choose the related link.
  2. Open the relevant vendor's card.
  3. On the Vendor Card page, choose the Ledger Entries action to open the Vendor Ledger Entries page. Here, you can review a list of all transactions for your vendor.
  4. Locate the entry that you want to correct.
  5. If you want to change the IRS code, find the IRS 1099 Code field, and then change the code for the relevant entry.
  6. If you want to change the amount, find the IRS 1099 Amount field, and then update the existing amount.

Report legacy 1099 amounts

Find the IRS 1099 statistics

  1. Choose the Tell Me feature icon, enter Vendors, and then choose the related link.
  2. Open the relevant vendor's card.
  3. On the Vendor Card page, choose the 1099 Statistics action to open the Vendor 1099 Statistics page.

Review IRS 1099 amounts for a specific vendor

  1. Choose the Tell Me feature icon, enter Vendors, and then choose the related link.
  2. Open the relevant vendor's card.
  3. On the Vendor Card page, choose the Vendor 1099 Information action to open the Vendor 1099 Information report.
  4. Set filters for vendor number and date, and then choose to print or preview the report.
  1. Choose the Tell Me feature icon, enter 1099 Form Boxes, and then choose the related link.

  2. On the 1099 Form Boxes page, choose the Reports action, and then choose one of vendor 1099 reports for printing:

    • Vendor 1099 Div - Prints the federal form 1099-DIV for dividends and distribution. You can print all or specific 1099-DIV forms. The report uses the codes that apply to the DIV form amount boxes from the 1099 Form Boxes page.
    • Vendor 1099 Int - Prints the federal form 1099-INT for interest income. You can print all or specific 1099-INT forms. The report uses the codes that apply to the INT form amount boxes from the 1099 Form Boxes page.
    • Vendor 1099 Misc - Prints the federal form 1099-MISC for miscellaneous income. You can print all or specific 1099-MISC forms. The report uses the codes that apply to the MISC form amount boxes from the 1099 Form Boxes page.
    • Vendor 1099 Nec – Prints the federal form 1099-NEC for nonemployee compensation. You can print all or specific 1099-NEC forms. The report uses the codes that apply to the NEC form amount boxes from the 1099 Form Boxes page.
Hinweis

Regulatory changes affecting this report and the table data are handled in end-of-year updates. For more information, see Regulatory 1099 Form Box Changes.

Submit the 1099 tax forms electronically

  1. Choose the Tell Me feature icon, enter 1099 Form Boxes, and then choose the related link.
  2. On the 1099 Form Boxes page, choose the Vendor 1099 Magnetic Media action.
  3. Specify the 1099 forms to export.

The report uses the codes that apply to the form amount boxes from the 1099 Form Boxes page. The codes are mapped to the form boxes in the file layouts of this report, therefore the table data, and report version for a particular tax year must be in agreement. If any custom codes are added to the table, these codes must be mapped to the form boxes inside this object.

Hinweis

  • The form information exported by this report is the same as the reports that print 1099 forms that are described in the previous section.

  • Regulatory changes affecting this report and the table data are handled in end-of-year updates.

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