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15179: 1099-MISC/NEC - Generate, Process, & e-File (DAS)


Payables

Drake Accounting®: How do I generate, process, print, and e-file Forms 1099-MISC/NEC?


Under Payables, Drake Accounting produces Form 1099-MISC for vendors based on payments made throughout the year. The vendor must be set up and have at least one check printed and dated in 20YY or an ATF check recorded with a check date in 20YY. Only payments made with a check date in 20YY are included in the vendor’s 20YY 1099-MISC.

Forms 1099 IRS Copy A and 1096 IRS Copy A are required to be printed on the pre-printed “red-line” forms as Data Only. If you choose to print Form and Data, a watermark will be shown across the form to prevent them from being filed with the IRS FIRE website. The form is now a 3-up instead of a 2-up starting in 2021.

Under Payables, Forms 1099-MISC must be “processed” before they can be printed and uploaded to the IRS FIRE website. “Processing” prepares the 1099s to be printed and automatically generates Form 1096.

  • Note: DAS does not support the creation of a 1099-MISC or 10990-NEC file for e-file purposes unless one or more of the following is true: 
    • the amount in box 1, 3, 5, 6, 7, or 10 is greater than $600, 
    • box 4 contains an amount, or
    • royalty or substitute payments in excess of $10 are included on box 2 or 8.

See the 1099-MISC Instructions for details.

Processing the 1099 Forms under Payables

To process Forms 1099-MISC, complete the following:

  1. Go to Payables > Federal Forms.
    • For the Form drop down, select 1099-MISC.
    • The applicable vendors with payments made during the year will show in the grid on the left under the Selection and Options section.
  2. Process 1099s either for all the vendors at once (default) or individually.
    • Select the check box to the left of the Name column header to process Forms 1099 for all vendors.
    • To select specific vendors, clear the check box to the left of the Name column header, and then select the individual vendors to process Forms 1099 for just those selected vendors.
  3. Click Process. The processed Forms 1099 are displayed to a page.
  4. To switch to another vendor’s 1099, use the drop down in the Find Vendor field, or use the left and right blue arrows to switch to another vendor’s 1099. You can also double click on a vendor in the grid to switch to its 1099. 
  5. Select the vendors from the list on the left side of the window you wish to print their 1099 by either:
    • Selecting the check box to the left of the Name column header to select all vendors.
    • Clearing the check box to the left of the Name column header, then selecting the vendors you wish to print their 1099-MISC.
  6. To print form 1096, select Print 1096 at the left of the window.
  7. Electronic Signature — If an electronic signature has been set up, select the desired signature from the drop list that should be used to sign the 1096. If electronic signatures have not been set up to be used with tax forms, the Electronic Signature drop list will be empty.
  8. Select the 1099 copies to print from the Print Options section:
    • Suppress if under filing requirements - If a form does not meet the filing criteria and is marked for printing, it will not be printed nor will it be included in Form 1096 when this checkbox is checked. When it is unchecked, it will be able to be printed and included in Form 1096 regardless of whether or not it meets filing requirements.
    • Print one page per form - This option will print each completed form (vendor) on a separate page.
    • Copy A — This option prints a copy of the 1099-MISC or 1099-NEC for the IRS.
    • Other Copies All — Use this option to select to print all copies other than copy A.
    • Other — This option selects all copies to be printed, including copy A. Clear any check boxes for copies you do not wish to print.
    • Include Recipient Instructions - This option will be available when selecting Copy B. The recipient instructions will always print after Copy B.
    • ​Include Payer Instructions -​ This option will be available when selecting ​Copy C.​ The instructions for Copy C will print on the last page.
    • ​Apply Form Adjustment - ​This option applies adjustments from the Adjust Tax Form Printing screen to the form. By default, it is unchecked for the ​Form and Data​ option and checked for the ​Data Only ​option. This checkbox is only on the 1099-MISC.
    • ​Form and Data - ​ This option will print the form with the data on it in print preview.
    • Data Only - This option will print the data only without the form in print preview.
  9. Under Print Type, select either:
    • 2-up 1099-MISC - This option will print 2 forms in print preview.
    • 3-up 1099-MISC - This option will print 3 forms in print preview.
  10. If you need to adjust the specific fields in the 1099-MISC, click the Adjust Tax Form Printing link under the Print Type section. You can also access the screen by going to Firm > Adjust Tax Form Printing.
    • See KB 15064 for more information about adjusting tax forms.
  11. Either click Save/Print to save processed forms and print them at a later time. You can click on the Review Saved Reports link at the bottom to print out a saved report.
    • If the 1096 check box is selected when you click Save/Print, the 1096 displays in a separate PDF window.
  12. Click the printer icon in the upper left to print from the PDF window. 

e-Filing the Payables Form 1099-MISC

These instructions assume this is an original filing of Forms 1099-MISC for the current tax year that has been created under the Payables module. Ensure there are no red validators on the screen.

The create the e-file of the 1099-MISC that you will then upload the IRS FIRE website:

  1. Go to e-Filings > 1099/1098 > Create File.
  2. Ensure the correct Payment Year has been entered. This indicates that the information entered on the 1099 is for that tax year.
  3. Ensure the Transmitter Control Code (TCC) has been entered, if it has not already been entered under Firm > Firm Information Setup.
  4. Under the File Indicator section, select Original File.
  5. Under File Type on the right, ensure 1099-MISC under the Vendor section is selected.
  6. Under Payer Information, ensure any applicable fields have been completed.
    • If your state participates in the federal/state 1099 program, check Combined Federal/State Program.  
  7. Under Selected Forms 1099, ensure the vendor(s) you wish to be included in the e-file are selected.
  8. Click the Create File button and note the location of the Federal e-file. 
    • The location of the Federal e-file will then display in blue at the bottom of the Federal 1099/1098 Create File screen. 
    • You can also locate the e-file under e-filings >Manage e-files. See KB 15504 for more details.
  9. * Go to e-Filings > 1099/1098 > Transmit File.
  10. Click IRS FIRE under the Transmit 1099 section.
  11. Once connected to the FIRE website, click Log On. 
  12. Click Continue.
  13. Click Send Your Information.
  14. Enter your TCC and TIN.
  15. Click Submit.
  16. Click Accept.
  17. Click either Original File or Correction File (if the original return had a BAD status).
  18. Enter your 10-digit PIN and click Submit.
  19. Click Browse to locate the file and open it.
  20. Click Upload

Note: To check the status of the Form 1099 transmissions, or verify what Forms 1099 have been filed, you will need to log in to the FIRE website.

Forms 1099 that are e-filed do not require a paper-filed 1096. The 1099 transmission file contains all the information that would be supplied by a 1096.

*If using Drake Hosted, first move the file that was created (see Step 8) to the local C:\ drive, as the FIRE website does not see the Drake Hosted drives. 

Prior year e-Filing of (Payables) Form 1099-MISC

As of March 2021, for Forms 1098/1099, the only forms that DAS 2020 does not allow prior year filing for are the Forms 1099-MISC, 1099-NEC, and 1099-PATR due to form and schema changes. DAS 2020 allows prior filing for all of the other Forms 1098-1099 since they have not changed from last year. A prior year Form 1099-MISC would need to be created in the applicable software year. For example, a 2019 1099-MISC would need to be created in DAS 19 and a 2018 1099-MISC would need to be created in DAS 18. 

To create an e-file for a prior-year 1099-MISC that was created under the Payables module: (These steps do not apply to DAS 20 for the 1099-MISC, 1099-NEC, or 1099-PATR)

  1. In the applicable year of DAS, go to e-Filingd > 1099/1098 > Create File.
  2. Enter the correct year in the Payment Year field. See note above. 
    • The year entered in the Payment Year field indicates that the information entered on the Form 1099 is for that tax year.
  3. If the release year of the program is behind the current filing year, check the Prior Year Payment checkbox.
  4. Ensure the Transmitter Control Code (TCC) has been entered, if it has not already been entered under Firm > Firm Information Setup.
  5. Under the File Indicator section, select Original File.
  6. Under File Type on the right, ensure 1099-MISC under the Vendor section is selected.
  7. Under Payer Information, ensure any applicable fields have been completed.
    • If your state participates in the federal/state 1099 program, check Combined Federal/State Program.
  8. Under Selected Forms 1099, ensure the vendor(s) you wish to e included in the e-file are selected.
  9. Click the Create File button and note the location of the Federal e-file.
    • The location of the Federal e-file will then display in blue at the bottom of the Federal 1099/1098 Create File screen.
    • You can also locate the e-file under e-Filings > Manage e-files.
      • See KB 15504 for more details.
  10. *Go to e-filings > 1099/1098 > Transmit File.
  11. Click IRS Fire in the Transmit 1099 section. 
  12. Once connected to the FIRE website, click Log On.
  13. Enter your User ID and Password (the password is case sensitive).
  14. Click Continue.
  15. Click Send Information Returns.
  16. Enter your TCC and TIN.
  17. Click Submit.
  18. Click Accept.
  19. Click either Original File or Correction File (if the original return had a BAD status).
  20. Enter your 10-digit PIN and click Submit.
  21. Click Browse to locate the file and open it.
  22. Click Upload



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