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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:

PeopleSoft Enterprise FIN Payables - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.


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.

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




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