AP02.4, AP146, and AP245 - 2021 new updates to the IRS form 1099

The AP02.4 Income Code contains these changes:
  • Updated the 1099-NEC valid box numbers to 1 and 2
  • Updated the 1099-Misc valid box numbers to 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, and 14
  • Updated the 1099-Div valid box numbers to 1a, 1b, 2a, 2b, 2c, 2d, 2e, 2f, 3, 5, 6, 7, 9, 10, 11, and 12
The AP245 Reportable Income Report contains these changes:
  • Added the minimum amount fields for Box 2 under the NEC tab
  • Added the minimum amount fields for Box 11 under the MISC tab
  • Added the minimum amount fields for Box 2e and Box 2f under the Dividend tab
  • All amounts from the new boxes/payment amounts should display in the report.
The AP146 1099 Tape Creation contains these changes:
  • The AP146 main tab contains the RevisionXXXXGA message where XXXX is the current year. The screen revision tag is displayed as Revision2021GA.
  • Added the minimum amount fields for Box 2 under the NEC tab
  • Added the minimum amount fields for Box 11 under the MISC tab
  • Added the minimum amount fields for Box 2e and Box 2f under the Dividend tab
  • Updated the Print and Tape output for 1099-NEC,1099-Misc, and 1099-Div for valid box numbers
The Print Output contains these changes:
  • 1099-NEC form:
    • Added Box 2 for Payer Made Direct Sales Totaling $5,000 or more
    • Triggers the AP146 program to populate the Box 2 check box with X if payer made a total direct sales of $5,000 or more
    • Removed the FATCA filing requirement check box
    • Resized the 1099-NEC form
    • Updated the form based on the latest field format
  • 1099-MISC form:
    • Changed the form title from Miscellaneous Income to Miscellaneous Information
    • Added Box 11 for the Fish purchased for resale
      Note: Use Box 2 on Form 1099-NEC or Box 7 on Form 1099-MISC to report the total direct sales of $5,000 or more.
  • 1099-Div form:
    • Added Box 2e (Section 897 Ordinary Dividends) and Box 2f (Section 897 Capital Gain) in the form
      Note: RICs and REITs should report any section 897 gains on the sale of United States real property interests (USRPI) in Box 2e and Box 2f.
    • Included 2e amount to Box 1a

      D1A = D1A + D1B + D5 + D6 + D2E

    • Included 2f amount to Box 2a

      D2A = D2A + D2B + D2C + D2D + D2F

The Tape Output contains these changes:
  • Updated Form 1099-NEC, Nonemployee Compensation is part of the Combined Federal/State Filing (CF/SF) for Tax Year 2021
  • Updated the format specifications and record layouts in the Tape Output for 1099-NEC.
    Note:  These are the changes made by AP146 to the output file if the Combined Federal/State parameter is set to Y:
    • Issuer A Record for CF/SF is populated with 1 in field position 6
    • Payee B Records are set with the appropriate state code in field position 488-489
    • Output file contains State Totals K Records
The Issuer A Record contains these changes:
  • Increased the length of the Amount Codes field to 18 in field position 28-45
  • Updated the length of the Blank field to 6 in field position 46-51
  • Updated the Amount Code for 1099- Div to 12356789ABCDEFGHJ
  • For 1099-NEC, the AP146 program populates 1 in field position 6 for Combined Federal/ State Filing Program field output to forward the issuer record to a state agency as part of the CF/SF Program. This is applicable if the Combined Federal/State parameter is set to Y in the AP146 form.
The Payee B Record contains these changes:
  • Allowed for all 18 Payment Amount fields. For the unused fields, specify 0 (zeros).
    • Added Payment Amount H 247-258 and Payment Amount J 259-270 as the new payment amount fields
    • For 1099-Div, the amount from Section 897 Ordinary Dividends (Box 2e) should show in the Payment Amount H field position 247-258 in the Tape Output.
    • For 1099-Div, the amount from Section 897 Capital Gains (Box 2f) should show in the Payment Amount J field position 259-270 in the Tape Output.
  • Updated the length of the Blank field to 16 in field position 271-286
  • Updated the Foreign Country Indicator in field position 287
  • Updated the First Payee Name Line field in field position 288-327
  • Updated the Second Payee Name Line field in field position 328-367
  • Deleted the field position 548 and the field title FATCA Filing Requirement Indicator for Record Layout Positions in the 1099-MISC form.
    Note: The field position 548 is now included on the Blank field 548-662.
  • Updated these Record Layouts field positions in the 1099-NEC form:
    • Field position 545-546 to Blank
    • Field position 547 to Direct Sales Indicator
      Note: The AP146 program populates Box 2 with 1 to indicate sales of $5,000 or more. This is based on the amount from Box 2 of the 1099-NEC form.
    • Field position 548-722 to Blank
    • Combined Federal/ State Code field position 747-748 to specify valid CF/SF code to forward the payee record to a state agency as part of the CF/SF Program. Specify the valid state code from Part A. Sec. 12, Table 1, Participating States, and Codes. This is applicable if the Combined Federal/State parameter is set to Y in the AP146 form.
The Issuer C Record contains these changes:
  • Updated the field position 304-321 for Payment H
    • Added Control Total H as a new payment amount field in field position 304-321
    • For 1099-Div, the total amount from Section 897 Ordinary Dividends (Box 2e) should show in the Control Total H field position 304-321 in the Tape Output.
  • Updated the field position 322-339, field title, length, and general field description for Payment J
    • Added Control Total J as a new payment amount field in field position 322-339
    • For 1099-Div, the total amount from Section 897 Capital Gains (Box 2f) should show in the Control Total J field position 322-339 in the Tape Output.
  • Updated the title length of the Blank field to 160 in field position 340-499
The State Totals K Record contains these changes:
  • Updated the field title for Payment H in field position 304-321
    • Added Control Total H as a new payment amount field in field position 304-321
    • For 1099-Div, the total amount from Section 897 Ordinary Dividends (Box 2e) should show in the Control Total H field position 304-321 in the Tape Output.
  • Updated the field position 322-339, field title, length, and general field description for Payment J
    • Added Control Total J as a new payment amount field in field position 322-339
    • For 1099-Div, the total amount from Section 897 Capital Gains (Box 2f) should show in the Control Total J field position 322-339 in the Tape Output.
  • Updated the title length of the Blank field to 160 in field position 340-499
  • 1099-NEC should have State Totals K Records in the Tape Output. This is applicable if the Combined Federal/State parameter is set to Y in the AP146 form.
Related Documentation
  • KB 2218778: Accounts Payable (AP) Year End 2021 Database Change Information - LSF Requirement
  • KB 2223171: 2021 U.S. Year End Update Information for Infor Lawson Accounts Payable
Related JT JT-1607332: 2021 new updates to the IRS form 1099