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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