New IRS 1099 requirements and 1099-NEC not part of CF/SF program

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Posted on by Community Member

With the IRS new requirement to report non-employee compensation on a new 1099-NEC form, the updated have been completed. But the IRS has also stated that it will not be forwarding the 1099-NEC data to the States through their CF/SF prrogram.

My question is, how do we set up the Vendors so that the State 1099 amount will be recorded? The Vendor state tax IDs do not automatically set the State on the Vendor invoice.

Vendor state tax IDs does not flow to the Vendor invoice for the State 1099.

You can update the transactions after the fact, but if the 1099 box flows from the Vendor master, why doesn't the State for the Settled State 1099 amounts?

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Community Member on at

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The CF/SF is for the Combined Federal and State program for Efiling.

www.irs.gov/.../combined-federal-state-filing-cfsf-program-state-coordinator-information-faqs

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Lucas Boewood on at

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Currently, the Vendor state tax ID and amounts are not automatically populated. Please see the following product suggestion that has been created to request the addition of this functionality (and lend your vote):

experience.dynamics.com/.../

There are also a few ways to manually update these values:

a. Manually when entering the invoice

b. Using the Vendor Update 1099 Tax Information process

c. Using the Tax 1099 Transactions form

Another option would be to create a customization to pull in the desired value for the vendor automatically.

a. This would likely be adding code to grab the StateID from the VendStateTaxID table (or perhaps based on the Primary vendor address)

b. There could be multiple state tax IDs set up so there would need to be logic involved to choose one in that scenario

I hope that helps!

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72camaross 320 on at

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Lucas,

When you say a few ways to manually update these values, are you referring to updating the State tax ID and amounts on the vendor record or will this update the state piece of the 1099 when being processed?

I ran the update 1099 after filling everything out for the vendor and still get nothing.

I've created invoices with state 1099 info and it just gets removed by the time I'm doing the payment. And there's no record I put anything there. Which has me scratching my head.

I'm not sure where to go from here. That voting for a feature is from 5 years ago....

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