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1099-NEC

  • 1.  1099-NEC

    TOP CONTRIBUTOR
    Posted Jan 21, 2021 04:49 PM
    We were just informed today by our AP department that we will have to print the new 1099-NEC form from the IRS.  Does anyone know what has to be done in AX 2012 R2 to enable printing of this form?  Thanks in advance.​

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    Rudy Salcedo
    Senior Programmer/Analyst
    LaForce, Inc
    Green Bay WI
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  • 2.  RE: 1099-NEC

    Posted Jan 22, 2021 09:30 AM
    Edited by Jacqy George Jan 22, 2021 09:31 AM
    Hi Rudy,

    Microsoft did not release a solution for 1099-NEC for R2 users since that product is past end of life.  The R3 solution was rolled up with thousands of KBs. If your system was not completely up to date with the latest fixes, applying the solution was difficult given the number of objects it touched. The 1099 solution performed a data migration to transition vendors to the new 1099 box (as an example, from MISC-07 to NEC-01), along with all their 2020 transactions.  There were 3 or 4 KBs dropped for R3 as Microsoft kept finding issues with the original solution.  See this article for details:

    https://community.dynamics.com/ax/f/microsoft-dynamics-ax-forum/412595/updated-1-13-2021---information-on-the-1099-nec-release-for-ax-2012-r3


    Your best bet given the IRS deadline of January 31 would be to use a third party processor.  Your finance team should be able to export the data as it is today, and most third party processors should know how to remap the amounts to the correct boxes.

    Good luck to you!

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    Jacqy George
    Armanino LLP

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  • 3.  RE: 1099-NEC

    TOP CONTRIBUTOR
    Posted Jan 22, 2021 09:31 AM
    My understanding is that R2 is no longer receiving regulatory updates, so the short answer is you can't.

    There are hotfixes for 2012 R3. I don't know if there is a possibility of running those hotfixes on R2 unsupported or not. My guess is no, but your mileage may vary. You can find info on those hotfixes here: Updated (1/13/2021) - Information on the 1099-NEC release for AX 2012 R3 - Microsoft Dynamics AX Forum Community Forum

    My advice is to generate a list of payees and amounts based on what your system says would be 1099-MISC box 1 and then use a 3rd party 1099 filing website to file your 1099-NEC's. We use File Forms 1099, W-2 and 1098 Online - efile4Biz, but there are plenty of sites out there that will file, print and mail them for you for under $5 each. Unless you're doing hundreds of them each year, it's going to be more cost effective to do something like that than it's going to be trying to get 1099-NEC's working in some form from 2012 R2.

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    Steve Latta
    Accountant
    Ortec, Inc.
    Easley SC
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  • 4.  RE: 1099-NEC

    Posted Jan 22, 2021 11:42 AM

    To offer another alternative, if your existing 1099s are limited to the former 1099-MISC, box 7 with no tax withholding, you might be able to handle in house. We were in a similar position as you, but fortunately our AP alerted us in early January. As noted by other posters, Microsoft did finally release an update on Friday January 8. We reviewed that update and determined it was way to risky to apply to production during year end. We haven't kept up with all of the Microsoft updates, so we had a lot of code conflicts to resolve. (We are on Dynamics AX R3 CU9 with plenty of customizations.)

    Our in house solution was to re-align the 1099-MISC report in Dynamics AX to print on 1099-NEC paper forms. So, we developed our own customization and our AP team could follow their standard process for printing 1099s. We were fortunate in that all of our reportable 1099 amounts are for 1099-MISC, box 7 with no tax withholding, so we didn't have to support printing to 1099-MISC for tax year 2020. Our AP team just printed the 1099-MISC report in Dynamics AX but used 1099-NEC paper stock in the physical printers. It worked out pretty well.

    We also came up with an offline solution to transform the e-files generated by Dynamics AX from 1099-MISC, box 7 to 1099-NEC, box 1. It is simpler than it sounds and the e-file specs in IRS pub 1220 are not too hard to follow. We have a lot of legal entities and have been e-filing from Dynamics for years, so this solution allowed our AP team to follow their normal process for both paper and e-filing for tax year 2020. Again, we were fortunate that we didn't have a mix of 1099 reportable amounts. It was a straight swap across the board.



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    Kevin Uhrich
    Director, Financial Systems
    Warburg Pincus LLC
    New York NY
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  • 5.  RE: 1099-NEC

    TOP CONTRIBUTOR
    Posted Jan 26, 2021 12:05 PM
    Edited by Rudy Salcedo Jan 26, 2021 12:05 PM
    Thank you all for the info and suggestions.  After adding an entry to the Tax1099Fields table for the 1099-NEC form, our AP dept. was somehow able to print the forms via Excel.  It was a manual process that took quite some time, so next year they'll probably e-file instead.

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    Rudy Salcedo
    Senior Programmer/Analyst
    LaForce, Inc
    Green Bay WI
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