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Applies to Product - Dynamics 365 Business Central


What’s happening?
Experiencing issues with the 1099 functionality in Business Central, including receiving warnings about 1099 removal and inquiries about the E-filing capabilities for 1099 forms.


Reason:
The 1099 reporting functionality is specifically designed for U.S. tenants and is not available for tenants operating in other regions. Additionally, the E-filing capability for 1099 forms has been updated to streamline the process, but there may have been previous limitations in functionality.


Resolution:

  1. 1099 Functionality:
  2. It is not possible to install the 1099 feature in a non-U.S. tenant database in Microsoft Dynamics 365 Business Central. The 1099 functionality is only available for U.S. tenants.
  3. If the 1099 app is installed in a U.S. tenant, it can be added as a dependency in custom code by specifying the dependency in the app.json file of the extension.
  4. E-filing Capability:
  5. Business Central now supports the electronic submission of 1099 forms. Users can submit the 1099 tax forms by selecting the appropriate icon, entering the 1099 Form Boxes, and choosing the related link for export.
  6. For detailed documentation and demonstration purposes, refer to the following resources:
    • Submit and report the IRS 1099 forms
    • Regulatory 1099 format changes and details - Business Central | Microsoft Learn
  7. Users are encouraged to test the E-filing process using test files and sandbox environments to ensure proper setup before going live.