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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / IRS 1099 reporting
Small and medium business | Business Central, N...
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IRS 1099 reporting

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Posted on by CU04081252-0 50
Hi team,
 
We have enabled the IRS 1099 feature in the feature management. We are on US version 26 of the Business Central. All the setups for IRS have been done. We want to confirm whether we can generate a file using IRS 1099 fire option which can be submitted to IRS portal after all the forms have been created on the IRS form boxes. If yes, can anyone explain the process and what does vendor software option means on IRS 1099 fire page.
 
Looking forward for the response.Thankyou in advance.
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Dynamics 365 Business Central
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  • Suggested answer
    Sumit Singh Profile Picture
    Sumit Singh 7,182 on at
    IRS 1099 reporting

    Can You Generate a File for IRS FIRE Submission?

    Yes, Business Central allows you to generate a file in the IRS FIRE (Filing Information Returns Electronically) format that can be submitted directly to the IRS portal.

    Prerequisites:

    1. Set up IRS Reporting Periods, Forms, Form Boxes, and Vendor mappings.
    2. Obtain a Transmitter Control Code (TCC) from the IRS — this is mandatory for FIRE submissions.

    How to Generate the IRS FIRE File

    Follow these steps in Business Central:
    1. Search for IRS 1099 FIRE in the Tell Me search bar.
    2. On the IRS 1099 FIRE request page, fill in:
      • Calendar Year: Reporting year.
      • Transmitter Control Code: Your IRS-issued TCC.
      • Company Info: Legal name, address, contact details.
      • Test File: Optional checkbox to generate a test file for IRS testing.
    3. Choose OK to generate the file.
    4. The system creates a text file (.txt) in the IRS FIRE format.
    5. You can then upload this file to the IRS FIRE portal.
    Note: For on-premises users, FIRE submission is the only supported method due to cloud-only sport for IRIS API integration.

    What Does "Vendor Software Option" Mean?

    The Vendor Software Option on the IRS 1099 FIRE page refers to:
    A flag indicating whether the file is generated using third-party software (i.e., Business Central or another vendor's solution) that conforms to IRS FIRE specifications.

    Purpose:

    • It helps the IRS identify the source of the file.
    • If you're using Business Central to generate the file, this option should be enabled to indicate that you're using vendor-developed software.

    When to Enable:

    • Always enable this if you're not manually creating the file but using Business Central’s built-in functionality.

     Additional Tips

    • Protect TINs: You can mask Taxpayer Identification Numbers (e.g., XXXXX1234) for security when emailing forms.
    • Email Automation: You can send substitute 1099 copies to vendors via email if they’ve given consent.
    • Form Box Setup: Ensure each vendor is mapped correctly to the appropriate 1099 form and box for accurate reporting.

    References
    [1] Set up the IRS 1099 form for version 24 [US] - Business Central
    Note: This response was created in collaboration with Microsoft Copilot to ensure clarity and completeness. I hope it helps to some extent.
    Mark the Answer as Verified if this is Helpful.
     
  • Suggested answer
    DAnny3211 Profile Picture
    DAnny3211 11,376 on at
    IRS 1099 reporting

    Hi there,

    Yes, once you've enabled the IRS 1099 feature and completed the setup in the US version 26 of Business Central, you can generate a file using the IRS 1099 FIRE option that is suitable for submission to the IRS portal.

    Here's how the process works:

    1. Complete 1099 Setup:

      • Ensure vendors are correctly configured with 1099 codes.
      • Transactions must be posted with the appropriate 1099 box numbers.

    2. Generate 1099 Forms:

      • Use the "Create 1099 Forms" function to prepare the forms based on posted transactions.

    3. Use IRS 1099 FIRE Option:

      • Navigate to the IRS 1099 FIRE page.
      • Select the reporting year and generate the FIRE file (usually in .txt format).
      • This file complies with IRS specifications and can be uploaded to the FIRE portal.

    4. Vendor Software Option:

      • This refers to the software vendor information that must be included in the FIRE file.
      • It identifies the source of the file submission and is required by the IRS.
      • You can configure this under IRS 1099 Setup or directly on the FIRE page.

    Let me know if you need help with the setup or generating the file!

    Please verify if this response was helpful.

    Best regards!

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