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

  • 12 October 2021
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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

Dgravius26 I totally agree that having these issues year after year is ridiculous. We are talking about a US 1099 form. Why does Acumatica create it in A4 or anything other than Letter size. It should be tested on a letter size US printer before you release it. Yes, there might be browser issues, but you should be prepared with the answers on how to correct them when you issue the form. This my third year needing to manipulate a 1099 - it never gets easier when you have to “play” with it to make it work. You should not need to be a programmer to run an admin task like printing 1099’s which is an annual event in finance.

Thank you for your response aanderson52.  Do you have tips to help facilitate the forms?  I’m not looking forward to writing them out.  But at this point it may be my only option.  :(

 

Needing a programmer for an annual need is out of line considering the money spent each year to use this software.  

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@Dgravius26 I had my client choose “scale> fit to page” when the print options came up and it worked better for them.  I didn’t change the format on the form. I also have another customer that just prints to a regular piece of paper.  I don’t know if they then take that and photo copy onto the forms but when I asked why they didn’t reach out with formatting issues she said they use regular paper.  

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

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@Dgravius26 when you are on the log in screen at the bottom right it will tell you which build you are on. 

If you are already logged in, on the upper right of the screen, click on tools>About and a pop up will show up. 

 

You will have to put in a ticket to get to the build needed for your instance to have the 3 part forms.  See first post to see which build you would need compared to the one you have currently.

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.

For anyone possibly having issues where the report doesn’t line up at all. Solutions for our own system was in two parts to get it to print correctly. Had to modify it through Report Designer to get it to work properly. Report in question is AP653100. First part was within the groupHeader_NEC21 section. All fields in that section had to be moved down 0.3175cm. After pushing all fields down that amount I had found the top stub had lined up on my end.  Second part was modification of the groupHeader_NEC21_seperator1_2 and groupHeader_NEC21_Seperator2_3. Both had to be adjusted to be a height of: 0.9825cm.

Once I made these modifications it appeared that everything had lined up on the report. Per each persons printer these measurements may change, but the main thing to keep in mind when attempting to adjust these is you need to modify the groupHeader_NEC21 first so that the first stub lines up. Once the first stub lines up, then you can change the separator section’s height in order to align the 2nd & 3rd stubs.

Screenshot below simply detailing the sections I was referencing.

 

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Hello @StevenHoffman18 ,

Thank you so much for your input!

However, editing the report itself should be the very last step. Let me assure everyone on that thread that 1099 reports printing was tested with the actual paper forms on Letter page size. The problem more likely in the PDF rendering, brower settings, or printer setting - and Acumatica ERP has no control over it.

We received a lot of cases related to the alignment issue, and I can sum up that most of them were resolved by following the steps described in the following article:

My apologies for pulling them up together just a few days before the deadline.

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