Business Central version 27.0 introduces a new approach to 1099 reporting. Users must configure vendors through the new 1099 setup process, generate reportable amounts, create forms, and submit information electronically to vendors and the IRS.

Setting up 1099 vendors

To prepare a vendor for 1099 reporting:

• Enter a Federal ID Number.
• Select a Tax Identification Type.
• Obtain consent for electronic delivery if forms will be emailed.
• Enter the vendor email address.

1099 reporting information is now maintained through 1099 Setup, where users define:

• Reporting year
• Form type
• Form box

Managing vendor setup

Vendor records can also be maintained through IRS Reporting Periods, making it easier to update multiple vendors and perform bulk setup activities.

Propagating 1099 Amounts

After setup is complete, use Propagate to pull eligible payment activity into 1099 reporting. A few key points to keep in mind:

• Only payments made within the reporting year are included.
• Unpaid invoices are not reported until payment is made.

Creating adjustments

Adjustments can be added before forms are generated to account for:

• Historical transactions
• Go-live balances
• Reporting corrections

Adjustments are included in the final reportable amount.

Generating and reviewing forms

To create forms:

1. Open Documents.
2. Select Create Forms.
3. Choose the reporting period and form type.
4. Generate and review the form.

If corrections are needed, regenerate the form using the Replace option.

Submitting and distributing forms

Once reviewed:

1. Release the form.
2. Mark it as Submitted.
3. Print or email the form to the vendor.

The updated form layout is designed primarily for electronic delivery.

Submitting to the IRS

After vendor forms are completed:

1. Open Vendor 1099 Magnetic Media.
2. Enter the IRS Transmitter Code and company information.
3. Generate the electronic filing file.
4. Submit the file to the IRS.

Key takeaways

• Business Central v27 introduces a new 1099 workflow.
• Vendor setup is managed through 1099 Setup and IRS Reporting Periods.
• Propagation automatically pulls eligible payment data.
• Adjustments can be entered before form creation.
• Forms can be generated, reviewed, submitted, and emailed directly from Business Central.
• Electronic filing files can be created for IRS submission.