As the end of the year approaches, it’s crucial for businesses to ensure their 1099 reporting is up-to-date and compliant with the latest IRS requirements. Microsoft Dynamics NAV and Business Central have seen several updates to the 1099 form and functionality over the years. Here’s a comprehensive guide to help you understand where you stand with these changes and how to optimize your reporting process.
Key Updates Over the Years
December 2018:
- New Codes: Introduction of the 1099 Form Box code DIV-05 and upgrades to codes from DIV-05 to DIV-11, now DIV-06 to DIV-12.
December 2020:
- New Forms and Codes: Addition of new 1099 Form Box codes NEC-01 and MISC-14, along with the new Vendor 1099 NEC form.
December 2021:
- Expanded Codes: New codes for 1099 forms, including DIV-02-E for Section 897 Ordinary Dividends and DIV-02-F for Section 897 Capital Gains. New codes for MISC and NEC forms, such as MISC-11 for Fish Purchased for Resale and NEC-02 for direct sales totaling $5,000 or more.
November 2022:
- Upgrades and Shifts: Upgrades to MISC and DIV boxes, including shifting some boxes in all 1099 reports and changing the position of the FATCA mark on the MISC report.
November 2023:
- No Layout Changes: No changes to the 1099 report layouts for the year 2023. However, users need to upgrade Business Central to print the new year’s text on reports.
Version 24.0 (April 2024):
- Enhanced Functionality: Introduction of new 1099 functionality for better transparency, integration, and automation. Users must enable this feature using the Feature Management page.
Why These Updates Matter
Staying current with these updates is essential for several reasons:
- Compliance: Ensures your business meets IRS requirements, avoiding potential penalties.
- Efficiency: Streamlines your reporting process, saving time and reducing errors.
- Transparency: Enhances visibility into your financial data, aiding in better decision-making.
How to Stay Informed
- Regular Updates: Keep your NAV and Business Central systems updated to the latest versions.
- Training and Webinars: Participate in training sessions and webinars, such as our upcoming webinar on December 12th, to stay informed about new features and best practices.
- Consult Documentation: Regularly review Microsoft’s official documentation and release notes for detailed information on updates.
To help you navigate these changes, we invite you to watch our webinar, “Optimizing Your 1099 Reporting with Business Central’s Enhanced Features”. Our experts will provide in-depth insights into the latest updates and how to leverage them for your business.
Check out our blog page here for more information and other topics of interest, or drop us a line at info@innovia.com.
