Friday, February 1, 2013

1099 tax form issues in AX 2012

It's that time of the year again that everyone loves: Tax Time! [smiley face with party hat]

That being said, it always is an interesting time as an ERP consultant. While everyone gets wrapped up in new mods and hitting deadlines for new functionality after go lives, companies often overlook running the 1099 tax forms in their new ERP until the very last second. This creates some problems as there may be issues with the form for the way the company is using it or due to certain mods.

To establish the basics: What is a 1099? A 1099 tax document is a document containing the income given to an independent contractor as received from a particular business. 1099's variations can also be used for other sources of income, such as dividends, interest, debt cancellation, real estate sale proceeds, etc. These are especially important to all the freelance consultants out there.

These documents must be furnished to the appropriate people by the paying company no later than January 31st. There are penalties assessed to the company for not providing them by this date as well as send out 1099s that are incorrect (~$100 penatly per 1099 returned so it adds up!) Check out the IRS website for more detailed info: http://www.irs.gov/instructions/i1099gi/ar02.html#d0e1927 

Waiting till the last second to test and run these puts a ton of heat on the consultants and IT staff if there are issues and things are done at the last second. If this is the first tax season in a new AX version, test before hand! I hit a 1099 last second scramble issue almost every year with various clients. I try to bring it up to be proactive but I don't always remember to due to workload.

To help out with known issues, below are the list of all AX 2012 1099 related hotfixes as of 2/1/2013. Maybe your issue is in the list. Get it from PartnerSource/CustomerSource or raise a support ticket and ask for it by number to see if its the same issue.
  • 2800289 - Pre payments on PO vendor invoices never show up on the 1099
  • 2800067 - 1099 amounts are understated when you apply a prepayment to a PO vendor invoice or overstated if you run the 1099 update 
  • 2723005 - Tax 1099 not calculated or Debug assertion failed with a stack trace error while creating an invoice for the Received purchase order.
  • 2648973 - Unable to edit the Settled Federal 1099 amount for 1099 transactions. You were able to perform this task in Microsoft Dynamics AX 2009. In addition, the HELP file indicates that you can perform this task.
  • 2714546 - Printing the 1099 report throws an "Invalid Range" exception.
  • 2715927 - 1099 amounts for debit memos do not update VendSettlementTax1099 and 1099 Update with Recalculate does not re-calculate them.
  • 2704309 cu3 - 1099 MISC Vendors print in incorrect boxes or not at depending on what MISC value you set the vendor up as
  • 2703177 cu3 - If you do Centralized Payments for 1099 vendors you can't report on the 1099 amounts in the Paying Company 
  • 2681423 - Tax 1099 duplicate taxpayer Identification report returns invalid results as it always returns every vendor set up to print tax 1099 and has a ID number -- it should be only displaying duplicates
  • 2682717 - Update 1099 includes the tax for the AP Invoice but NOT for the PO Invoice when it writes to the VendSettlementTax1099 table
  • 2648973 - Unable to edit the Settled Federal 1099 amount for 1099 transactions

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