EAP WTHD: 1099 TIN and Amount Change Generates Unnecessary IRS File "A" Record Entry and Copy B Form After Bug 30996701 (Doc ID 2795394.1)

Last updated on SEPTEMBER 07, 2021

Applies to:

Symptoms

Making 1099 TIN correction and moving amounts from one Withholding Type Class to another, generates an unnecessary "A" record in the in the IRS file and Copy B form referencing the new TIN with zero amounts.

STEPS:

1099 Original

1. Withholding Supplier USA0000018 > TIN = 032456785 (Suppliers > Supplier Information > Add/Update > Add/Update Supplier)
2. Adjust Withholding USA0000018 > two original Withholding payments for 1099M / Class 03 = 6000.00 (Suppliers > 1099/Global Withholding > Maintain > Adjust Withholding)
3. Withholding Supplier USA0000055 > TIN = 777666555 (Suppliers > Supplier Information > Add/Update > Add/Update Supplier > Location tab > 1099 link)
4. Adjust Withholding USA0000055 > three original withholding payments (Suppliers > 1099/Global Withholding > Maintain > Adjust Withholding)
    a. 1099M / Class 06 = 5000.00
    b. 1099N / Class 01 = 4000.00
5. 1099 Job (Suppliers > 1099/Global Withholding > 1099 Reports > Withhold 1099 Report Job)
6. IRS file and Copy B forms correct
7. Withholding Sent File for original payments > WTHD_SENT_DTL data correct  (Suppliers > 1099/Global Withholding > 1099 Reports > Withholding Sent File)

1099 Correction

1. USA0000018 > Adjust Withholding - Correction > zero out original amount 1099M / Class 03 = 6000.00 and move to 1099N / Class 01 > add two Legacy rows (Suppliers > 1099/Global Withholding > Maintain > Adjust Withholding)
    a. One to zero out 1099M / Class 03 = -6000.00
    b. Second to add amounts to 1099N / Class 01 = 6000.00
2. USA0000055 > Adjust Withholding - Correction > zero out original amount for 1099M / Class 06 = 5000.00 and move to 1099N / Class 01 > add two Legacy rows (Suppliers > 1099/Global Withholding > Maintain > Adjust Withholding)
    a. One to zero out 1099M / Class 06 = -5000.00
    b. Second to add amounts to 1099N / Class 01 = 5000.00
    c. Total for 1099N / Class 01 = 9000.00
3. USA0000055 > change TIN from 777666555 to 987654321 (Suppliers > Supplier Information > Add/Update > Add/Update Supplier > Location tab > 1099 link)
4. 1099 Job for corrections > box checked for ‘Include Manual Overrides’ > Withholding Type Process Option = All (Suppliers > 1099/Global Withholding > 1099 Reports > Withhold 1099 Report Job)
5. IRS file entries for USA0000018 are correct
6. USA0000018 > two Copy B forms correct
    a. 1099-MISC > Corrected box checked for zero amounts
    b. 1099-NEC > Corrected box not checked > Box 1 = 6000.00
7. Three "A" records for USA0000055 (TIN change and zero out 1099M / Class 06 = -5000.00 and move to 1099N / Class 01 = 9000.00 Total)
    a. B2021G > Amount Codes = 36 > Old TIN > zero amounts – Correct
    b. 2021G > Amount Code = NE1 > Old TIN > zero amounts – Why?
    c. B2021C > Amount Code = NE1 > New TIN > 9000.00 – Correct
8. USA0000055 > Three 1099 Copy B forms
    a. 1099-MISC > Corrected box checked > original TIN = 777666555 > zero amounts > Correct
    b. 1099-NEC > Corrected box checked > original TIN > zero amounts > Why?
    c. 1099-NEC > Corrected box not checked > new TIN = 987654321 > Box 1 = 9000.00 > Correct

Cause

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