Hi All,
Thought I'd throw this out here so everyone can see the scope behind the IRS 1099 change:
For the calendar year 2020, the requirements for reporting "Non-Employee Compensation" will include a new form. Previously, all "Non-Employee Compensation" payments were reported to recipients and the IRS in form 1099-MISC, Box 7.
Form 1099-NEC was created to separate the 1099-MISC, Box 7 forms and will be required for the year 2020. Businesses will need to be ready to use this new form as well as the revised 1099-MISC. Below is a summary of the changes made:
- All amounts formerly placed in 1099-MISC, Box 7, ($600 or greater) will be reported on 1099-NEC, Box 1. These forms will be mailed out to recipients and the IRS by or on January 31st. (Please note for the 2020 Forms, February 1, 2021 is the due date since January 31st is on a Sunday.)
- Other amounts formerly reported on 1099-MISC may be reported in a new box. At least $600 in:
- Rents (box 1);
- Prizes and awards (box 3);
- Other income payments (box 3);
- Generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3);
- Any fishing boat proceeds (box 5);
- Medical and health care payments (box 6);
- Crop insurance proceeds (box 9);
- Payments to an attorney (box 10) (see Payments to attorneys, later);
- Section 409A deferrals (box 12); or
- Nonqualified deferred compensation (box 14).
- Form 1099-NEC is due to recipients and the IRS (postmarked by or on) January 31st. 1099-MISC forms must all be submitted to the IRS by February 28th. However, the recipient due date varies based on the type of transaction. Please see https://www.irs.gov/pub/irs-pdf/i1099gi.pdf for detailed due dates.
Hope this helps everyone. Happy 1099!
Steve
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Steven Chinsky
Manager
Wipfli
Mansfield MA
NAVUG/BC Programming Committee Member
NAVUG All-Star, Granite Award Recipient, MCP, DCMP
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Original Message:
Sent: Jan 12, 2021 10:58 AM
From: Thomas (Tom) Blaisdell
Subject: 1099 Forms
Sorry for delays in responding. I was out at the end of the year for personal time off and travel. Since arriving back to the office, our regular support load is extremely high, so getting to the Forum posts has been challenging. Thank you for your patience.
As for the method for releasing year end changes such as the 1099 changes, the Cumulative Update process has been the release mechanism since NAV 2013 Released. Cumulative Updates have been the way that Development releases changes because changes are based on the most current Objects. You may certainly provide feedback to the Product Team at the following Ideas site to bring visibility to the concerns. Categories (dynamics.com)
Magnetic Media changes are included in the January Cumulative Updates that were released at the end of last week.
Thank you again for your patience everyone and thank you for everyone contributing to the discussion.
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Thomas (Tom) Blaisdell
Sr. Support Escalation Engineer
Microsoft
Alpharetta GA
Original Message:
Sent: Dec 16, 2020 12:41 PM
From: Ron Saritzky
Subject: 1099 Forms
By the way, my previous comment that function "UpdateIRSCodeInPostedData" was not referenced was incorrect. It is added to Table 23 (Vendor).
It's unfortunate that we have to hunt and seek all objects that need to be updated - we're not ready to merge the entire cumulative update 62 into our code base.
Tom - what happened to the "Year-end updates" that had only 1099-specific changes?
Ron
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Ron Saritzky
Generate Life Sciences
Los Angeles CA
Original Message:
Sent: Dec 16, 2020 10:25 AM
From: Thomas (Tom) Blaisdell
Subject: 1099 Forms
As for clarification, I missed a late update from the Product Team on Friday that NAV 2016 and Business Central Wave 2 2020 (Version 17.00) Cumulative Updates for December were released.
In my communication internally, there evidently was already communication that an Update to US Licenses for On Premise is required because Report 10116 and 10117 are new Reports. That process is still in progress from my understanding.
As for the update of all entries, I have communicated the concern.
I will provide updates as I get them.
Thanks
Tom
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Thomas (Tom) Blaisdell
Sr. Support Escalation Engineer
Microsoft
Alpharetta GA
Original Message:
Sent: Dec 16, 2020 07:46 AM
From: Kyle Hardin
Subject: 1099 Forms
Codeunit 10501 also has no date filtering at all. So it will change any MISC-07 it finds to NEC-01 regardless of posting date across all vendor ledger entries and posted purchase invoices and credit memos.
I used a pretty beefy server for 16.8 onprem, and this process took 45 minutes, and that was only for one year of data (customer went live in January).
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Kyle Hardin
Business Central Developer
ArcherPoint Inc.
Atlanta GA
Original Message:
Sent: Dec 15, 2020 08:34 PM
From: Ron Saritzky
Subject: 1099 Forms
I did notice that the 1099 objects for NAV2016 are in Cumulative Update 62 which HAS been released, except I found a couple of issues:
1. There is a function to update posted entries to the new 1099 box numbers in codeunit 10501 "Upgrade IRS 1099 form boxes" called "UpdateIRSCodeInPostedData". But that function isn't called from any action on a page or another function.
2. 2 new reports 10116 "Vendor 1099 Misc 2020" and 10117 "Vendor 1099 Nec" aren't in our license range, so they can't be run. I don't know if this can be fixed with an update, or anyone who needs these reports will need to obtain an updated license.
I hope these are the issues that Tom mentioned as a "late identified build issue." But technically they ARE "released" in that cumulative update.
Ron
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Ron Saritzky
Generate Life Sciences
Los Angeles CA
Original Message:
Sent: Dec 10, 2020 04:41 PM
From: Thomas (Tom) Blaisdell
Subject: 1099 Forms
Hello all,
Thank you for your patience Kyle and everyone. The Cumulative Updates have been published for On Premise Versions on the support.microsoft.com website under the Help menu on 12/09/2020. You will be able to locate the Cumulative Update by searching for Cumulative Update December 2020 Business Central or Microsoft Dynamics NAV, whichever is relevant from the site. Of special note is that Microsoft Dynamics NAV 2016 release is pending due to a late identified build issue.
Please note that the SAAS release will begin within the next week or two. The 17.2 Update is in progress review and testing.
The only key additional note is that Mag Media was still being finalized and will be releaed in a separate Hotfix.
Best Regards,
Tom
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Thomas (Tom) Blaisdell
Sr. Support Escalation Engineer
Microsoft
Alpharetta GA
Original Message:
Sent: Nov 23, 2020 10:41 AM
From: Kyle Hardin
Subject: 1099 Forms
@Thomas (Tom) Blaisdell - any update on the US 1099s and when they might be available now that it is late November?
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Kyle Hardin
Business Central Developer
ArcherPoint Inc.
Atlanta GA
Original Message:
Sent: Oct 15, 2020 08:28 AM
From: Thomas (Tom) Blaisdell
Subject: 1099 Forms
Hello All,,
Thank you for the posts and for everyone who has provided guidance.
Microsoft Dynamics Business Central and NAV Global Development is in the process of creating the new Report. The new 1099-NEC Report will release in Cumulative Updates for Microsoft Dynamics NAV 2016 through current versions. In addition, the 1099 MISC will include the change for the removal of Box 7 as Non-employee Compensation and restructure under the new 1099-MISC format for 2020 filing. At this point, we do not have the timing on whether this will be included in the November, December or January Cumulative Update Release. For Microsoft Dynamics NAV 2015 and earlier, the report will need to be pulled from the 2016 and brought back as these versions are no longer under current Development suppport with the five year life cycle, or custom development of the Report will need to occur.
Thank you,
Best Regards,
Tom
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Thomas (Tom) Blaisdell
Sr. Support Escalation Engineer
Microsoft
Alpharetta GA
Original Message:
Sent: Oct 14, 2020 01:07 PM
From: Sara Sharkey
Subject: 1099 Forms
Hi All--
Does anyone have information on courses/ learning sessions related to the change in 1099 forms for 2020? I know this question isn't directly related to NAV, but since our company uses it to access information related to the 1099's I thought I would ask.
Thank you!
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Sara Sharkey
Accountant
Compax
Salt Lake City UT
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