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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?


Through the Combined Federal/State Program, you can e-file 1099 information for some states at the same time you e-file Federal 1099 information directly to the IRS through the FIRE program web site (Filing Information Returns Electronically). The IRS forwards 1099 information to participating states (see Publication 1220 for details). 

Watch the video, e-Filing 1099s, for a demonstration of e-filing.  

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. Form 1099-NEC is now a 3-up instead of a 2-up starting in 2021.

  • DAS does not support the creation of a 1099-MISC e-File unless one or more of the following is true:
    • Box 7 is checked.
    • The sum of Box 2 or 8 is greater than or equal to $10.
    • Box 1, 3, 5, 6, 9, 10, 12, or 14 is greater than or equal to $600.
    • Box 4 is greater than $0.
    • The Suppress if under filing requirements checkbox is unchecked. 
  • DAS does not support the creation of a 1099-NEC e-File unless one or more of the following is true:
    • Box 1 is greater than or equal to $600.
    • Box 2 is checked.
    • Box 4 is greater than $0.
    • The Suppress if under filing requirements checkbox is unchecked.

Neither Form 1099-MISC nor 1099-NEC will be created if the form is marked VOID

See the 1099-MISC and 1099-NEC Instructions for details.

Processing the Forms 1099 under Payables

Under Payables, Forms 1099-MISC and/or 1099-NEC must be “processed” before they can be printed and uploaded to the IRS FIRE website. “Processing” prepares the Forms 1099 to be printed and automatically generates Form 1096Drake Accounting produces Form 1099-MISC and/or 1099-NEC 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 and/or 1099-NEC. To process Forms 1099-MISC and/or 1099-NEC, complete the following:

  1. Go to Payables > Federal Forms.
    • For the Form drop down, select 1099-MISC or 1099-NEC.
    • 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 Forms 1099 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 that 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.
  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 for the 1099-MISC, 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 on the 1099-MISC or 1099-NEC, 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 display them in a print preview screen or click Save to save the 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 or 1099-NEC

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

To create the e-file of the 1099-MISC or 1099-NEC 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 or 1099-NEC under the Vendor section is selected. By default, the most recently saved 1099 will be 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 as a clickable hyperlink 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 FIRE Production under the Transmit 1099/1098 section.
  11. Enter your TCC, EIN, Company Name, User ID and Password (the password is case sensitive) and click Login.
  12. Click Continue.
  13. Click Send Information Returns.
  14. Click Submit.
  15. Click Accept.
  16. Click either Original File or Replacement File (if the original return had a BAD status).
  17. Enter your 10-digit PIN and click Submit.
  18. Click Browse to locate the file and open it.
  19. 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 Hosting on Right Networks, files are saved by default to the I:\ drive. See Related Links below for further information on how to locate e-file forms from within the Hosting on Right Networks Desktop.

Prior year e-Filing of (Payables) Form 1099/1098

Prior year e-Filing is available for all Forms 1099/1098 in DAS 21. 

To e-file a prior year form, the appropriate year needs to be entered in the Payment Year field. Then follow the steps for creating and transmitting the e-File above. Note: The Prior Year Payment checkbox needs to be checked if the payment year matches the year of the DAS program being used, but it is not the current filing year (i.e. if arranging a payment for 2020 while using DAS21, the Prior Year Payment checkbox would need to be checked since tax year 2021 is the current filing year, but the payment is for 2020.) It will automatically be checked for years prior to 2021.


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