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!

——————————
Sara Sharkey
Accountant
Compax
Salt Lake City UT
——————————

Not sure if this is what you’re asking, but there is another thread concerning the new 1099-NEC for to report non-employee compensation.  See this thread for more info:

https://www.navug.com/communities/community-home/digestviewer/viewthread?GroupId=49&MessageKey=e57fe0b9-4d21-4f99-8f45-c9e83c4b712a&CommunityKey=95503735-5a0b-4af1-8326-9bd7bb3b4d3d&tab=digestviewer&ReturnUrl=%2fcommunities%2fcommunity-home%2fdigestviewer%3fcommunitykey%3d95503735-5a0b-4af1-8326-9bd7bb3b4d3d%26tab%3ddigestviewer

——————————
David Wiser
Sr. Solution Consultant
Tigunia
2019-2020 Board of Advisors
BCUG|NAVUG All-Star
——————————
——————————————-

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

——————————
Thomas (Tom) Blaisdell
Sr. Support Escalation Engineer
Microsoft
Alpharetta GA
——————————
——————————————-

– any update on the US 1099s and when they might be available now that it is late November??

——————————
Kyle Hardin
Business Central Developer
ArcherPoint Inc.
Atlanta GA
——————————
——————————————-

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 

——————————
Thomas (Tom) Blaisdell
Sr. Support Escalation Engineer
Microsoft
Alpharetta GA
——————————
——————————————-

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

——————————
Ron Saritzky
Generate Life Sciences
Los Angeles CA
——————————
——————————————-

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).

——————————
Kyle Hardin
Business Central Developer
ArcherPoint Inc.
Atlanta GA
——————————
——————————————-

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

——————————
Thomas (Tom) Blaisdell
Sr. Support Escalation Engineer
Microsoft
Alpharetta GA
——————————
——————————————-

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

——————————
Ron Saritzky
Generate Life Sciences
Los Angeles CA
——————————
——————————————-

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. 

——————————
Thomas (Tom) Blaisdell
Sr. Support Escalation Engineer
Microsoft
Alpharetta GA
——————————
——————————————-

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 31^st. (Please note for the 2020 Forms, February 1, 2021 is the due date since January 31^st 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 31^st. 1099-MISC forms must all be submitted to the IRS by February 28^th. 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

——————————
Steven Chinsky
Manager
Wipfli
Mansfield MA
NAVUG/BC Programming Committee Member
NAVUG All-Star, Granite Award Recipient, MCP, DCMP
——————————
——————————————-

The newly-released Magnetic Media report has a bug in it, at least in BC 16.9. I have not looked at 17.3. But the NEC Type B record has incorrect spacing.

This line of code

StrSubstNo(‘#1#’, Vendor.County) +

Needs to be this:

StrSubstNo(‘#1’, Vendor.County) +

I have made this change to my customer and the IRS has approved the resulting test file.

——————————
Kyle Hardin
Business Central Developer
ArcherPoint Inc.
Atlanta GA
——————————
——————————————-

Hi Tom – any word on whether an updated license file can be generated to include the new 1099 objects yet?

——————————
Ron Saritzky
Generate Life Sciences
Los Angeles CA
——————————
——————————————-

Or when the magnetic file report is going to be available?

——————————
Kyle Hardin
Business Central Developer
ArcherPoint Inc.
Atlanta GA
——————————
——————————————-

Hi Tom,

I’m working through this update, and I’ve seen the code where the 1099 codes are updated in all the transaction- and document-related tables:
VendorLedgerEntry
PurchaseHeader
PurchInvHeader
PurchCrMemoHdr
GenJournalLineAccount
GenJournalLineBalAccount

But I DON’T see anywhere where the VENDOR table gets updated, replacing MISC-07 with NEC-01.

The “Upgrade IRS 1099 Form Boxes” codeunit doesn’t update the Vendor table.
Update from Ron 1/6/21 – the Vendor Table and all the related tables listed above are in fact updated when you run the “Upgrade Form Boxes” action.

Is it expected for users to manually update each Vendor record?
Users may update individual vendors (e.g. change them back to MISC-07 if necessary (certain vendors need to be changed back) by changing the “IRS 1099 code” on the Vendor card back to MISC-07.  The related tables will then be changed back to match.

Ron
Did I miss something?

——————————
Ron Saritzky
Generate Life Sciences
Los Angeles CA
——————————
——————————————-

Kyle:

I’m on 2016, but trying to follow the logic in CU10501.  The function “UpdateIRSCodeInPostedData” is only referenced in the “IRS 1099 Box” ONVALIDATE trigger in Table 23 (Vendor).

Did you simply run CU10501 through the action “Update Form Boxes” on the “IRS 1099 Form-Box” page?  I guess that the RENAME command in function “ShiftIRS1099”:

IRS1099FormBox.RENAME(INCSTR(IRSCode));

forces the ONVALIDATE trigger on Table 23 to run, thereby calling the “UpdateIRSCodeInPostedData”?
Correction 1/6/20 – the RENAME command changes all values of this field if there is a Table-Relation defined.  So since Vendor, Vendor Ledger Entry, Purchase Header, Purchase Invoice Header, Purchase Cr. Memo Header and Gen. Jnl Line all have this table relation, they are all changed “automatically” during the RENAME process.

Ron

——————————
Ron Saritzky
Generate Life Sciences
Los Angeles CA
——————————
——————————————-

Also, just for everyone’s information, Microsoft has added a “1099 Adjustments” page, accessible from the 1099 Form-Box page.  You select the particular 1099 code from the Form-Box list and click “Adjustments”.  You can then enter a vendor number and a positive/negative adjustment for that particular vendor’s amount.  When the 1099 is printed, NAV will adjust the 1099 amount by the amount of the Adjustment.  

Just make sure you have focus on the 1099 code that you want to adjust.  That code is not on the “Adjustments” page (I’ve already customized the page so that it displays).  Otherwise, you’ll think you’ve made an adjustment but the 1099 report doesn’t reflect it.

Ron

——————————
Ron Saritzky
Generate Life Sciences
Los Angeles CA
——————————
——————————————-

For all,

I just installed a fresh updated license file, downloaded from Microsoft today – it DOES now include the license for the 2 new reports 10116 and 10117.  Thanks to Tom Blaisdell for keeping us updated!

——————————
Ron Saritzky
Generate Life Sciences
Los Angeles CA
——————————
——————————————-

Hello all once again,

It turns out that I was mistaken – I can edit the reports in the Development Environment, but cannot actually RUN the reports in the Client.  This is with a license generated on 12/31/20.

Ron

——————————
Ron Saritzky
Generate Life Sciences
Los Angeles CA
——————————
——————————————-

Hi Sara,
I have an article about the 1099 Misc-07 and NEC changes. Check it out at:

Time to Prepare for Regulatory Reporting to the IRS – Dynamics Discussions (dynamics-discussions.com)

This article outlines the steps to take to update the forms in the 1099 Forms Box as well as updating existing vendors from 1099 MISC-07 to the NEC-01. It also describes how to update the vendor ledger entries if something was coded incorrectly.

——————————
Deb Lashua
Consulting Supervisor
RSM
Boston MA
——————————
——————————————-

Hi Deb–

Thank you for the article reference.  We use NAV2016, but this seems to be geared toward Business Central users.  I will keep searching for information, but if you come across anything else, please let me know.

Thanks!

——————————
Sara Sharkey
Accountant
Compax
Salt Lake City UT
——————————
——————————————-

Hi Sara,

The 1099 update process for NAV2016 is essentially the same as for Business Central.  We are on NAV2016, and I have been a NAV developer/consultant for 20 years, so have done 1099 updates for all prior versions.

There is an issue however for 2016. In prior years, the 1099 Update was packaged on a standalone basis, so your Partner could install just the 1099-related updates.  However, as far as I know right now, the 1099 updates are included in Cumulative update 62, so your partner will have to extract the required objects from Cum Update 62 and merge them into your database.

For reference, Here are the objects that I’ve found that are related to the 1099 Update:

Object Type	ID	Name
Table	23	Vendor
Table	10010	IRS 1099 Form-Box
Table	10016	IRS 1099 Adjustment
Report	10109	Vendor 1099 Div
Report	10110	Vendor 1099 Information
Report	10111	Vendor 1099 Int
Report	10112	Vendor 1099 Misc
Report	10115	Vendor 1099 Magnetic Media
Report	10116	Vendor 1099 Misc 2020
Report	10117	Vendor 1099 Nec
Codeunit	10500	IRS 1099 Management
Codeunit	10501	Upgrade IRS 1099 Form Boxes
Page	10015	IRS 1099 Form-Box
Page	10018	IRS 1099 Adjustments

I’m happy to chat with you privately and point you in the right direction.  Just send me a PM.

——————————
Ron Saritzky
Generate Life Sciences
Los Angeles CA
——————————
——————————————-

Thanks to Deb Lashua for questioning my statement above that Vendor “IRS 1099 code” values are not updated.  I was mistaken, and I apologize for my erroneous statement.

Upon further review, I discovered the following. This example is just related to the change of code MISC-07 to NEC-01, but the same thing applies to the other 1099 codes that are changed, which are MISC-09, MISC-10, MISC-14, MISC-15-A and MISC-16:

1. The “Update Form Boxes” action does a RENAME on record MISC-07 in the IRS 1099 Form-Box table.

2. The RENAME looks for all table relations to this field – this includes the Vendor table, so it will change the value of the “IRS 1099 Code” for any vendor that has a code of MISC-07 and change it to MISC-NEC – this is where I made an error on my part thinking that the Vendor table would not be updated.

3. In addition to changing the value of  “IRS 1099 Code” in the Vendor table, it changes the field value in Vendor Ledger Entry, Purchase Header, Purchase Invoice Header, Purchase Cr. Memo Header and Gen. Journal Line (with lines related to Vendors) – they are all updated to NEC-01.

There is a separate function in codeunit 10501 that handles changes on a Vendor-by-Vendor basis.  This allows you to change Vendors back to MISC-07 if necessary on a one-by-one basis.  If you change a particular vendor’s 1099 code BACK to MISC-07 from NEC-01, it will do the same thing – change all the related subsidiary tables.

I appreciate people like Deb taking the time to “keep me honest” <grin>.  My goal here is always to provide accurate information.

——————————
Ron Saritzky
Generate Life Sciences
Los Angeles CA
——————————
——————————————-

For NAV, I understand a new license will also be required for access to the new objects. This license update must come through your partner.

——————————
Cynthia Priebe
New View Strategies
“The NAV & BC training and process experts”
——————————
——————————————-

Cynthia is correct – a new license is required.  As of 1/7/21, however, even a new license does not work – developers can edit the new objects, but users cannot execute new objects.  I’m following up with our partner to get a response from Microsoft on when this will be corrected (We’re on NAV2016 by the way, so this problem may be 2016-specific)

Also, a Magnetic Media update was released, but requires a developer to merge the changes into 2 of the objects released in Cumulative Update 62 – they haven’t (yet) released full object files for this update.  This as of 1/7/21.

——————————
Ron Saritzky
Generate Life Sciences
Los Angeles CA
——————————
——————————————-

Morning All,

If anyone has had issues printing the 1099-NEC because of alignment issues, this has been reported to Microsoft. Since yesterday and today are rush to print and send 1099 ‘fun days’, had to correct this via DEV. Below is an image of the bad alignment. I am attaching an RDL version that corrected this to fast track any assistance this can give you or if you are working with your Partner to get to the 1099’s out.
Thanks and happy 1099’ing.
Steve

——————————
Steven Chinsky
Manager
Wipfli
Mansfield MA
NAVUG/BC Programming Committee Member
NAVUG All-Star, Granite Award Recipient, MCP, DCMP
——————————
——————————————-

Test the magnetic report too. The BC version has an alignment problem in the NEC B records. I have not looked at any NAV versions.

——————————
Kyle Hardin
Business Central Developer
ArcherPoint Inc.
Atlanta GA
——————————
——————————————-