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Files Modification for the 1099-MISC and 1099-NEC Withholding Tax Returns for Fiscal Year 2021
This blog post will inform you about electronic files modification for 1099-MICS and 1099-NEC Withholding Tax Returns. The Internal Revenue Service (IRS) has published the specifications for electronic files for the fiscal year 2021.
These changes were incorporated in the electronic files:
Record A (Issuer)
- Amount Codes – the length changed from 16 to 18 characters
- Blanks positions – the length updated from 8 to 6
Record B (Payee)
- Payment Amount fields were updated from 16 to 18 characters
- 16 positions for blanks are added
- Position of Foreign Country Indicator is updated
- Position of First Payee Name is updated
- Second Payee Name is removed
- FATCA filling indicator is removed and replaced with blanks
- Blanks positions updated
Record C (End of Issuer)
- Two positions added for Control Totals
- Blank’s positions length updated from 196 to 160
Record K (State Totals)
- Two positions added for Control Totals
- Blank’s positions length updated from 196 to 160
With this we provide electronic files for 1099-MISC and 1099-NEC returns that are compliant with the recent IRS specifications.
Should you have any comments, questions or suggestions, please let us know via Comments section below the blog post.
Hello Ingrid,
Could you please support me in the below doubt?
1099-MISC error from IRS for Combined filing
1 'A' record(s) has a '1' in position 6 indicating participation in the Combined Federal/State Filing Program; however, no 'B' record(s) contains a valid code in positions 747-748. If you have an 'A' record coded and it is not one of these returns, remove the '1' from position 6 of the 'A' record.
Record K is present and also the Combined Federal / State filling is generated in positions 747-748. But not appearing in B Records.
Regards,
Chetan H
Hello Chetan,
We have verified the B-record entry. Currently we are correctly deriving the state codes for it. In order to solve your problem may I kindly ask you to raise an incident in the incident portal with the reference to the correct return type?
Thank you and best regards,
Ingrid
Hello Ingrid,
we compared the file format with 1099INT and 1099NEC and found that in 1099NEC Record B there is an element missing for Combined Federal / State with the reference to record K for the field positions 747-748.
Regards,
CH