R12: AP: Oracle Payables' Plans For 1099 Reporting in the Current Tax Year
(Doc ID 209913.1)
Last updated on SEPTEMBER 07, 2022
Applies to:Oracle Payables - Version 188.8.131.52 and later
Information in this document applies to any platform.
Oracle Payable Plans For 1099 Reporting in the Current Tax Year
1099 Reporting for Tax Year 2021
This document discusses the changes in Form 1099-MISC and Form 1099-NEC introduced by the US Internal Revenue Services for the tax year 2021 and its impact on the users of Oracle Payables.
Summary of Changes for Tax Year 2021
- Reporting fish purchased for resale in Form 1099-MISC.
- Resizing of Form 1099-NEC.
- Form 1099-NEC added to Combined Federal/State Filing Program.
- Changes to the record structure for electronic filing
Reporting fish purchased for resale in Form 1099-MISC
If you are in the business of purchasing fish for resale, you must report total cash payments of $600 or more paid during the year to any person who is engaged in the business of catching fish.
- If you are filing the returns on paper, then the amount must be reported in Box 11 of Form 1099-MISC as shown below:
- If you are filing the returns electronically, then the amount must be reported using the amount code "F".
- We have introduced a new income tax type, MISC11, to identify the invoices pertaining to the new category of payments “Fish purchased for resale”.
- Invoices created with income tax type as MISC11 are processed and reported in Box 11 of Form 1099-MISC paper layout.
- If you are filing electronically, the invoices are reported in the electronic file using the amount code "F".
- The following reports also report invoices having income tax type MISC11:
- 1096 Form
- 1099 Forms
- 1099 Forms PDF Format
- 1099 Forms – Comma Delimited Format
- 1099 Electronic Media
- If you purchase fish for resale from suppliers who are engaged in catching fish, you can select the income tax type MISC11 in the supplier profile. The income tax type will default on the supplier invoices automatically and get reported in Box 11. Alternatively, select the income tax type MISC11 during invoice creation.
- If you have already entered some transactions in 2021 of this nature prior to receiving the update, you must update the income tax type to MISC11 on the invoice distributions.
Resizing of Form 1099-NEC
- Form 1099-NEC has been resized to accommodate three forms on a page.
- 1099 Forms has been updated to print three forms on a page for Form 1099-NEC.
Form 1099-NEC added to Combined Federal/State Filing Program
The Combined Federal/State Filing Program simplifies filing of returns since IRS sends the information to participating states electronically. Form 1099-NEC is now part of the Combined Federal/State Filing Program.
- 1099 Electronic Media Report has been updated to report state totals in K records for Form 1099-NEC if you have enabled combined filing.
Changes to record structure for electronic filing
The following changes are made to the electronic file record layouts:
- B Record
- New fields for payment code H and J at position 247-270
- Positions of foreign country indicator and payee name have been updated to 287 and 288 respectively
- C and K records
- New fields for payment code H and J at position 304-339
- The 1099 Electronic Media program has been updated to print the foreign country indicator and payee name in the revised positions in the B record.
- Since payment code H and J are not used for 1099-MISC and 1099-NEC, the positions are filled zeros in B, C and K records.
IRS Reference Information
For more details on the 1099 changes referenced here, please use the IRS website - "Forms, Instructions and Publications" searching tool(s). You will find (among others) the following documents that list the changes mentioned in this document:
- Instructions for Forms 1099-MISC and 1099-NEC (Rev. January 2022) Miscellaneous Information and Nonemployee Compensation.
- 2021 Instructions for Forms 1099-MISCand 1099-NEC Miscellaneous Information and Nonemployee Compensation.
Final Consolidated Patches For 1099 Project - 2021 has been released.
Note: There is no 1099 patch for Release 12.0.x
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