New option creates 1099 output for prior year

The Internal Revenue Service (IRS) now accepts 1099-MISC forms after December 31, or after the end of the current calendar year. This requires that you specify the proper reporting period when you run the Vendor Administrator Federal 1099 Print after December 31st. You must take care to select data for the prior year but populate the Prior Year Indicator properly in the 1099 output to avoid rejection by the IRS.

A new option is added to the report to allow you to select the prior tax reporting year. When you select Yes for the new option, For Prior Tax Year, these changes occur:
  • The Prior Year Indicator, 'P', is loaded in Position 6 of the T record.
  • The selection for the option, (C)urrent or (P)revious Year's Payments is checked.
    • If Previous is selected, data is extracted from the Payments Last Year in Vendor Setup. The Payment Year is updated with the current year minus 1.
    • If Current is selected, and you are sending output to Magnetic Media, the message Cannot Use Current Year Payments to Generate Prior Tax Year Report is displayed. No output is generated.
  • The Prior Year Indicator is no longer updated based on your selection for the (C)urrent or (P)revious Year's Payments option.

When you select No for the For Prior Tax Year option, the Prior Year Indicator is blank. If Current is selected for the (C)urrent or (P)revious Year's Payments option, data for the 1099 output is extracted from the Payments Year to Date for each vendor in Vendor Setup. The Payment Year for the 1099 output is updated with current year. If you have already run Vendor Administrator Year End, Payments Year to Date amounts are moved to Payments Last Year. Select Previous and data is extracted from Payments Last Year. The Payment Year is updated with the current year minus 1.