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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

Janella
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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? 

 

A
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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.

Irina
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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.

Best regards, Irina
Irina
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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.
Best regards, Irina
david.harris
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@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. 

 



 

dgrayson10
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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

Doug Johnson
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Updates to 1099 e-filing posted today.

Irina
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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.

Best regards, Irina
Doug Johnson
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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.

C
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@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.  

Irina
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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.

Best regards, Irina
D
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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.  

C
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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.  

C
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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.

W
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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?

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

D
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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?

C
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@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? 

A
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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.

S
Rank

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.

 

Irina
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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.

Best regards, Irina
dgrayson10
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Are there updates for 20R1 for the paper forms?

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

 

 

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

Haylee Hicks // i-Tech Support // ERP Client Success Manager

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