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.
