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

  • 12 October 2021
  • 33 replies
  • 3287 views

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

W
Rank

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. 

A
Rank

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?

S
Rank
Userlevel 1

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

C
Rank
Userlevel 3
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?  

C
Rank
Userlevel 3
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. 

S
Rank

@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.

 

D
Rank

cwomack98 How do I verify if we are on a build that has the fix?  The forms are printing 2 two a page.

A
Rank

Dgravius26 the most important part of this is the comment below. You need to know how to get to it as it is accessed by clicking on the box in the upper left corner of the document which is hard to remember when you only do this once a year.

making sure that the paperkind in Report Designer matches the paperkind in the browser printing window 

Browsers now seem to default to A4 as their page size which is an issue. Ultimately last year I could not make things work universally in my office, but did on my home office computer so I created the pdf and sent it to my staff to print like any other pdf. I am trying to use the form in Chrome with the setup they provided but alignment is an issue. Changes I made include using the page header section at 1.8cm, Form size of 9.3cm, put separations at 0cm, moved field data up to get rid of the space that was originally allotted for the header but only belongs at top of page. Changed to letter size. Had issue with printing only two on first page with the rest working fine. Changed to a page height of 32CM trying to trick the system to print three. In the end I left it with 2 on the first page to just be done with it. I wasted way too much time on this task. I am using Chrome and tried FireFox which was worse.

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