R12: AP: 1099 Patches Have Been Applied for Filing Year 2020 or Later And the Federal Reporting Limit Is Being Ignored.
(Doc ID 2743196.1)
Last updated on JULY 01, 2024
Applies to:
Oracle Payables - Version 12.2.10 and laterInformation in this document applies to any platform.
Symptoms
For year 2020 and later, the new 1099-NEC form is included in the yearly 1099 patch. If Suppliers have amounts for MISC7 (1099-NEC form only) and other Income Tax Types (MISC1 for example, which prints on 1099-MISC form) where the Income Tax Type amounts are less than $600, but the total is more than $600, both 1099 forms print. This occurs when a Supplier has invoices that uses more than one Income Tax Type.
Steps to replicate
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Run 1099 Forms concurrent request
Note that a 1099-MISC is created for a supplier but the total reported amount is less then 600.00
Supplier has $400 coded to Income Tax Type MISC1 and $300 to MISC7, the
Supplier is getting a 1099-MISC form printed with $400 in box 1 (MISC1), and
a 1099-NEC form with $300 in box 1 (MISC7) because $400 + $300 > $600.
This is incorrect. Each box on each form has their own limit. Each box
has $600 limit except for MISC2 which has a $10 limit.
This is incorrect on all 1099 forms. 1099 Forms, 1099 Forms PDF Format, 1099
Forms Comma Delimited, and 1099 Electronic Media.
There should be NO totaling of the Income Tax Type amounts.
If each Income Tax Type <$600 (<$10 for MISC2), then the Supplier should NOT
get the 1099 reported.
Changes
Applied the 1099 patches for year 2020 or later. Non-Employee Compensation (NEC MISC7) now prints on a new form 1099-NEC and not on form 1099-MISC.
Cause
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In this Document
| Symptoms |
| Changes |
| Cause |
| Solution |
| References |