EAP WTHD21: 1099 Correction Tax File Rejected By the IRS - 'B' Record(s) Contains a Combined Federal/State Code (or Something Other Than Spaces) in Positions 747-748; However, the 'A' Record Does Not Have a '1' in Position 6. (Doc ID 2877227.1)

Last updated on AUGUST 23, 2023

Applies to:

Symptoms

Customer does not participate in the Combined Federal/State Filing (CF/SF) Program. The "Combined Federal State Filing" box is not checked on the Report Control Information > Payor Data page.

IRS accepted the original IRS Tax file sent to them and the Withholding Sent process was run.

Withholding Adjustment was created for a Supplier. 1099 Correction File was sent to the IRS. 1099 Correction File rejected by the IRS with a message.

STEPS
1. Set Up Financials/Supply Chain > Product Related > Procurement Options > Withholding > Report Control Information
    a. On the Payor Data page, Combined Federal State Filing box is not checked
    b. On the Piggyback States/Number page, the Process? box is checked for CT and NJ

2. Accounts Payable > Vouchers > Add/Update > Regular Entry
    a. Create Vouchers for 1099 Suppliers, include one with an address in NJ (New Jersey)

3. Accounts Payable > Payments > Pay Cycle Processing > Pay Cycle Job
    a. Run the Pay Cycle to pay the 1099 Vouchers

4. Accounts Payable > Batch Processes > Payment > Payment Posting
    a. Run Payment Posting

5. Suppliers > 1099/Global Withholding > Maintain > Post Withholdings
    a. Run Post Withholdings

6. Suppliers > 1099/Global Withholding > 1099 Reports > Withhold 1099 Report Job
    a. Run the 1099 Job

7. Send the IRS Tax file to the IRS

8. IRS accepts the IRS Tax file

9. Suppliers > 1099/Global Withholding > 1099 Reports > Withholding Sent File
    a. Run Withholding Sent

10. Suppliers > 1099/Global Withholding > Maintain > Adjust Withholding
      a. Create a manual Withholding Adjustment for a 1099 Supplier that resides in NJ

11. Run the 1099 Job

12. Send the Correction Tax file to the IRS

13. IRS rejects the file with the above Message

Changes

Cause

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