The objective of this article is to explain why a new Income Type “Fish Purchased for Resale” was introduced in SAP Business ByDesign.
The Internal Revenue Service (IRS) has published the tax print-forms for the fiscal year 2021. These tax forms must be filed by January 2022. Within 1099-MISC there was added a new Income Type in 1099 – MISC, Box 11. Box 11 includes any reporting under section 6050R, regarding cash payments for the purchase of fish for resale purposes, from an individual or corporation who is engaged in catching fish. If you are in the trade or business of purchasing fish for resale, you must report total cash payments of $600 or more paid during the year to any person who is engaged in the trade or business of catching fish. You are required to keep records showing the date and amount of each cash payment made during the year, but you must report only the total amount paid for the year on Form 1099-MISC
To be compliant with the legislation relating to the 1099 Miscellaneous Tax Returns for US withholding taxes, we are introducing a new Income Type ‘’Fish Purchased for Resale” with Hotfix.
All the tax line items corresponding to this would now be required to be reported under Form Box 11.
Documents created until the new Income Type is delivered and should be reported under the Form Box 11 within 1099 Miscellaneous Tax Return, may be corrected. Two possible options are available:
It will require a maintenance of the Supplier Master Data and Product Master Data. The new Income Type should be assigned to the Supplier and Product, in order to get it activated for tax calculations and tax reporting. It means that this new Income Type must be assigned to the respective Supplier Master Data and Product Master Data before the correction itself.
Please, assign the new Income Type to the Supplier Master Data. In the “Business Partner Data” work center search for “Supplier”. Then click on “View All” button -> Financial Data tab -> Tax Data subtab. Under the “Withholding Tax Classification” section, a field “Withholding Tax Income Type” is available. Select “11 – Fish Purchased for Resale” option.
In the “Product Data” work center select “Materials” option under the “Overview” section. Search for particular “Material”. Click on “View All” button -> Taxes tab. Under the Withholding Tax Classification section, a field “Withholding Tax Income Type” is available. Select “11 – Fish Purchased for Resale” option.
This blog post support you in applying the regulations for the 1099 Miscellaneous Tax Return in SAP Business ByDesign.
Okumaya devam et...
The Internal Revenue Service (IRS) has published the tax print-forms for the fiscal year 2021. These tax forms must be filed by January 2022. Within 1099-MISC there was added a new Income Type in 1099 – MISC, Box 11. Box 11 includes any reporting under section 6050R, regarding cash payments for the purchase of fish for resale purposes, from an individual or corporation who is engaged in catching fish. If you are in the trade or business of purchasing fish for resale, you must report total cash payments of $600 or more paid during the year to any person who is engaged in the trade or business of catching fish. You are required to keep records showing the date and amount of each cash payment made during the year, but you must report only the total amount paid for the year on Form 1099-MISC
To be compliant with the legislation relating to the 1099 Miscellaneous Tax Returns for US withholding taxes, we are introducing a new Income Type ‘’Fish Purchased for Resale” with Hotfix.
All the tax line items corresponding to this would now be required to be reported under Form Box 11.
Documents created until the new Income Type is delivered and should be reported under the Form Box 11 within 1099 Miscellaneous Tax Return, may be corrected. Two possible options are available:
- Create a new Supplier Invoice by cancelling the previous documents.
- Create a manual tax entry for the new Income Type
It will require a maintenance of the Supplier Master Data and Product Master Data. The new Income Type should be assigned to the Supplier and Product, in order to get it activated for tax calculations and tax reporting. It means that this new Income Type must be assigned to the respective Supplier Master Data and Product Master Data before the correction itself.
Please, assign the new Income Type to the Supplier Master Data. In the “Business Partner Data” work center search for “Supplier”. Then click on “View All” button -> Financial Data tab -> Tax Data subtab. Under the “Withholding Tax Classification” section, a field “Withholding Tax Income Type” is available. Select “11 – Fish Purchased for Resale” option.
In the “Product Data” work center select “Materials” option under the “Overview” section. Search for particular “Material”. Click on “View All” button -> Taxes tab. Under the Withholding Tax Classification section, a field “Withholding Tax Income Type” is available. Select “11 – Fish Purchased for Resale” option.
This blog post support you in applying the regulations for the 1099 Miscellaneous Tax Return in SAP Business ByDesign.
Okumaya devam et...