1099-MISC and 1099-NEC updates for Tax Year 2021

  • 12 October 2021
  • 33 replies
  • 2683 views

Userlevel 6
Badge +1

For tax year 2021, the IRS made minor changes to the 1099-MISC and 1099-NEC forms. Details of the changes can be found on the IRS website

Acumatica will implement these changes in upcoming versions of the software to assist with customer 1099 filings. There are 3 changes that impact Acumatica.

  • Form 1099-NEC sizing. Acumatica will reduce the height of the form to match IRS changes.
  • Form 1099-MISC, box 11. New use for box 11 includes any reporting under section 6050R, regarding cash payments for the purchase of fish for resale purposes, from a individual or corporation who is engaged in catching fish.
  • Form 1099-NEC, box 2. Payers may use either box 2 on Form 1099-NEC or box 7 on Form 1099-MISC to report any sales totaling $5,000 or more of consumer products for resale, on buy-sell, deposit-commission, or any other basis.

1099 Paper Forms:

Changes to the 1099 Paper forms are currently available in the following builds of Acumatica:

  • 2021 R2 Update 3 Hotfix 1 (21.203.0030) and later
  • 2021 R1 Update 17 (21.117.0037) and later
  • 2020 R2 Update 19 (20.219.0018) and later
  • 2020 R1 in the form of a customization package, see this knowledge base article

When running 1099 reports, make sure that:

  • There are no active custom versions of the report on the Report Versions tab. Please note that customized reports cannot be updated. In order for changes to take effect, all custom versions of the report should be deactivated.
  • A proper year is selected when for 1099-NEC report.

1099 E-filing:

Changes to the 1099 E-filing are currently available in the following builds of Acumatica:

  • 2021 R2 Update 5 (21.205.0063) and later
  • 2021 R1 Update 17 (21.117.0037) and later
    • We have discovered an issue that in some cases affects generated e-files of NEC format. The issue was fixed in the Update 18 (21.118.0038), see this knowledge base article for more information
  • 2020 R2 Update 19 (20.219.0018) and later
    • We have discovered an issue that affects e-files generated when the Direct Sales Only check box was selected on the Create E-File form. For detailed information and applicable workaround, see this knowledge base article
    • We have discovered an issue that in some cases affects generated e-files of NEC format. The issue was fixed in the Update 20 (20.220.0016), see this knowledge base article for more information.
  • 2020 R1 in the form of a customization package, see this knowledge base article

33 replies

Userlevel 6
Badge +1

In addition to changes on the paper forms, there are electronic filing changes as described on pages 11-12 of this IRS Publication 1220. These changes will be implemented in Acumatica immediately following the changes to the paper forms. Work started on Nov 2, 2021.

Are there updates for 20R1 for the paper forms?

Userlevel 6
Badge +4

Hi @Doug Johnson Thanks for posting the updates to the 1099 files for the tax year 2021.

 

 

Userlevel 2
Badge

Hi @Doug Johnson! Are there any updates on when the builds with the fixes will be available for clients?

2020R1 - To be released by 12/5

2020R2 - 20.219.0018 - see page 2 of Update 19 Release Notes; released on 11-19-2021

2021R1- 21.117.0037 - see page 2 of Update 17 Release Notes released on 11-26-2021

2021R2 - 21.204 - estimated for 12/3/21 release

Userlevel 6
Badge +1

Updates to 1099 e-filing posted today.

We just upgraded to 2021R1- 21.117.0037 version, and the 1099-NEC report changes did NOT get applied to the paper forms.  Is anyone else having problems?

Userlevel 6
Badge +1

Today we posted important updates to the 1099 form updates for tax year 2021. These updates are included in the body of the article above. 

  • 2020 R1 customization is available
  • We published 2 knowledge base articles related to issues discovered in 2020 R2 and 2021 R1.

The upgraded 1099-NEC paper format report did not upgrade! 

@Doug Johnson - There is something wrong with the 1099-NEC paper report for Acumatica version 2021R1- 21.117.0037.   Our current report did not upgraded and does NOT match the IRS updated template.  We are not sure how to proceed. Is anyone else having issues with the version of Acumatica. 

Userlevel 7
Badge +7

Hello @wsauer86 

Please provide us with the information on what exactly is wrong with the report. I see that you already have a case with us - I would suggest to keep communicating there.

From our side, we don’t see any cases reported. In general, make sure that you select a proper year on generating 1099-NEC report.

Userlevel 2

2021R1 NEC @Irina a few of our clients have purchased NEC for 2021 it is 3 per page, but in Acumatica they’re still 2 per page, how is this being handled? 

 

Userlevel 7
Badge +7

Hello @jperez94, answering your question you left here and in the 

 article: 

  1. Please make sure that clients are on the builds where paper or e-filing changes are implemented, see the starting message for exact build numbers.
  2. Make sure that they select a proper year on generating 1099-NEC report.
  3. Make sure that they use out-of-the-box reports, meaning that there are no versions of this reports on the Report Versions tab. If there are some versions, they should be deactivated. Please note that customized reports cannot be updated.

We just updated to the most recent Acumatica build. Can anyone tell me where we can get the 1099 forms to upload? We previously had customized the ones provided?

Userlevel 1

If anyone gets desperate like we did and can’t update to get the latest 1099-NEC form, I was able to use Report Designer and create a report that printed 3 to a page. I started with the existing report AP653100 that is 2 to a page. The main thing I did was remove the page margins, remove the extra spacing area, and set the main area size to 9.31cm on letter size. It was a lot of guess and checking while printing on copies of the 1099-NEC part A but we got it to work.

Using Acumatica for 4 weeks, need to print 1099NEC.  Not lining up on form.  What do I need to do?

Userlevel 2
Badge

Opened a ticket yesterday because client was on 21.205.063 and still showing 2 per page.  They updated to 21.206.0024 and still only 2 per page.  What am I missing?  I asked for either the hot fix or the current build whichever one was needed for the report to be correct.  Anyone else on 21R2 and having issues?  

Userlevel 3
Badge

@cwomack98,

 

This is likely due to an edit of the old form. With a user that has report designer role please check 1099-MISC (AP653000) and 1099-NEC (AP653100) screens for any active report versions. These will need to be unchecked and then when the reports are ran they should have the 3/per page format. 

 



 

Userlevel 2
Badge

That was it thank you!! I didn’t make mods for them so I didn’t look there.  I noticed someone made changes on the 16th which would have been them without my knowledge. 

@Doug Johnson @cwomack98 

Hi there, I have a customer on version 21.203.0030, they are reporting that the 1099 forms are not aligning correctly on the preprinted forms.

I have checked and there are no customised reports.

Where do I get below Hotfix?  Or should it have been included in 21.203.0030?

  • 2021 R2 Update 3 Hotfix 1 (21.203.0030) and later

Thanks!  Sue.

 

Userlevel 2
Badge

@sjohnson49 I opened a ticket to make sure my clients were on the latest builds.  I would open a ticket and ask to get the hot fix or update the latest build that should include the hotfix.  I still had to manipulate the form a bit to print in the correct boxes as some things were too high and some were too low.  It isn’t perfect but it will work.  

@cwomack98 Thanks for your reply!  Yes I’ve opened a case..

Userlevel 7
Badge +7

Hello @sjohnson49 

2021 R2 Update 3 Hotfix 1 (21.203.0030) is an Acumatica version. There is no need to install any Hotfix - it was called this way in order to distinguish this build from Update 3 Build 21.203.0026 which was recalled.

Therefore, you should have changes to your 1099 paper forms in place.

Userlevel 7
Badge +7

Regarding the report alignement, please see below:

Currently, the 1099 report prints in PDF mode, which has sort of forced margins and formatting and also can make it difficult to see the changes made to the report if you are making minor adjustments on report due to the PDF formatting overriding and pushing fields back to where they were. You can try disabling Print in PDF format check box to see the report in HTML format, without PDF rendering.

Without being able to print using the customers printer or computer initiating the printing, we can’t make recommendations on where to move fields or which adjustments to make. The biggest factors are going to be the PDF vs HTML difference, and making sure that the paperkind in Report Designer matches the paperkind in the browser printing window (this can vary depending on which browser you are printing from).

Most US based printers are using Letter format though A4 is the default paperkind in Report Designer, so this will need to be adjusted, but even still one browser may use Letter and another use A4 (though this should populate based on the data sent to the printer, but doesn't always).

Lastly is the printer itself and the configuration of the local printer which is not something we are able to make recommendations on, but can come into play. It can come down to copying the pre-printed form onto regular paper so it doesn't waste forms and just trial and error to get the alignment correct, but there is not a way to provide a report guaranteed to work with all printers unfortunately.

1099-NEC should have already been fixed before now.  This was an issue last year and I, personally, do not like having to go through this.  It seems that most people conversing are acumatica folks.  When can we expect the fix so we, the end users, don’t have to spend so much time on this function?

Userlevel 2
Badge

@Dgravius26 what are you needing help with?  Are you on a build that has the fix in place and still not seeing 3 per sheet or is the formatting off? 

Reply


About Acumatica ERP system
Acumatica Cloud ERP provides the best business management solution for transforming your company to thrive in the new digital economy. Built on a future-proof platform with open architecture for rapid integrations, scalability, and ease of use, Acumatica delivers unparalleled value to small and midmarket organizations. Connected Business. Delivered.
© 2008 — 2020  Acumatica, Inc. All rights reserved