Regulatory 1099 format changes and details
Important
From version 24.0, you can start using new 1099 functionality for better transparency, integration, and automation. To do this, you must enable this new feature using the Feature Management page. You can find more details here. If you do not enable it earlier, Business Central will automatically do it with the version 27.0, so we recommend to start using the new version right now.
The Internal Revenue Service (IRS) periodically issues updates to the format used in the 1099 Form Box. This article lists changes to the codes and requirements in the IRS 1099 forms.
Important
Running the Update Form Boxes action will prevent you from reporting for previous years because some boxes change their meaning. Make sure you've done all your reporting for the previous year before you update the form boxes to prepare for reporting for the new year.
Regulatory 1099 format changes November 2023
There are no changes associated with the 1099 report layouts for the year 2023. To continue printing the text of the new year on reports, such as 2024, you should upgrade your Business Central. To get this update, you must run the Update Form Boxes action on the 1099 Form Boxes page.
Regulatory 1099 format changes November 2022
1099 changes for 2022 provide an upgrade for the MISC and DIV boxes.
- Some of the boxes will be shifted in all 1099 reports.
- A calendar year is added in the top right corner in printouts.
- For the MISC report, the position of the FATCA mark is different. There are no changes in the sequence of text elements for the Magnetic Media.
The additions are relevant for the reporting year 2022. Before you prepare your reporting for 2021, you must first upgrade your Business Central to handle the new requirements.
Regulatory 1099 format changes December 2021
The following table lists the 1099 Form Box codes have been added to 1099 forms.
| Form | Amount Type | Code |
|---|---|---|
| Form 1099-DIV | Section 897 Ordinary Dividends | DIV-02-E |
| Section 897 Capital Gains | DIV-02-F | |
| Form 1099-MISC | Fish Purchased for resale | MISC-11 |
| Form 1099-NEC | Payer made direct sales totaling $5,000 or more of consumer products to recipient for resale | NEC-02 |
The additions are relevant for the reporting year 2021. Before you prepare your reporting for 2021, you must first upgrade your Business Central to handle the new requirements. To get this update, you must run the Update Form Boxes action on the 1099 Form Boxes page. Alternatively, you can open the 1099 Form Boxes page, and use the Schedule an update of the form boxes link in the notification to specify when you want the update to run.
Regulatory 1099 format changes December 2020
In Business Central, the new 1099 Form Box codes NEC-01 and MISC-14, and a new form, Vendor 1099 Nec, have been added. The additions are relevant for the reporting year 2020. Before you submit your reporting for 2020, you must first upgrade your Business Central to handle the new requirements. To get this update, you must run the action Update Form Boxes on the 1099 Form-Boxes page.
Regulatory 1099 format changes December 2018
In Business Central, a new 1099 Form Box code DIV-05 has been added, and all the 1099 codes from DIV-05 to DIV-11 were upgraded to codes from DIV-06 to DIV-12. When you open the IRS 1099 Form Box page, a notification pops up to upgrade the form boxes. If you change the 1099 code on the Vendor Card page, a notification will display asking if you want to update the 1099 codes for all the associated entries (like purchase documents, journal lines, posted invoices, credit memos, and vendor ledger entries).
See also
Set Up and Use the IRS 1099 Form
United States Local Functionality
Register New Vendors
Record Purchase
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