SAP BLOG Files Modification for the 1099-MISC and 1099-NEC Withholding Tax Returns for Fiscal Year 2021

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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.

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