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This article describes how to report and submit IRS 1099 forms Business Central.
Register with the IRS
You can't print 1099 reports directly on preprinted forms. You can submit 1099 forms using magnetic media or through integration with the IRIS. If you prefer to manually populate your 1099 forms, you can gather all necessary information from the IRS 1099 Form Documents and fill them out manually, outside of Business Central.
You can print or email 1099 copy substitutes to your vendors, including all the details the original form requires.
Submit using integration with IRIS
Business Central provides an API that integrates the IRS's Information Returns Intake System (IRIS) so that you can electronically file your returns. To learn more about IRIS, go to the IRS website.
Set up your IRIS User ID
Before you can send transmissions, every Business Central user who submits 1099 forms must register with the IRS Consent App and connect their IRIS User ID to Business Central. Open the Setup IRIS User ID page from IRS Forms Setup and follow the in-product instructions.
Important
The IRIS User ID is stored per Business Central user, not per company because on the IRS side an IRIS User ID identifies a person, not a company. The same IRIS User ID is therefore visible across all companies the user signs in to. If the IRS issued you a separate IRIS User ID for another company, sign in as a different Business Central user when you submit transmissions for that company.
Note
After you create 1099 form documents for vendors, when you post invoices for vendors and apply payments to them, the Amount field on the 1099 Form Document page updates. It's a good idea to review the amount before you submit the information.
To submit your 1099 form using IRIS, follow these steps:
Select Search (Alt+Q)
in the upper-right corner, enter IRS 1099 Form Documents, and then choose the related link.Choose the Create Forms action.
On the IRS 1099 Create Form Documents page, select the reporting period in the Period field.
Fill in the remaining fields as necessary, and then choose OK. Hover over a field to read a short description.
On the IRS 1099 Form Documents page, review the value in the Amount field.
Choose the Release action.
Tip
You can release multiple documents at the same time. Select the lines for the documents, and then choose the Release All action.
Select Search (Alt+Q)
in the upper-right corner, enter IRIS Transmissions, and then choose the related link.To combine all released 1099 documents so that you can send them to the IRS, on the IRIS Transmissions page, choose the Create IRIS Transmissions action.
On the Create Transmission IRIS page, fill in the Reporting Period field, and then choose OK.
On the IRIS Transmissions page, choose the value in the Period No. field to open the IRIS Transmission page, where you can review the information before you submit it.
If the information is correct, choose the Send action.
After you submit the document to the IRS by using the API, the status of the document on the IRS 1099 Form Document page changes to Submitted.
Tip
If amounts change after you create a transmission, or new released 1099 form documents appear for the same period, choose the Update Transmission action on the IRIS Transmission page to recalculate the related form documents and add the new ones to the transmission.
Submit using magnetic media
Submitting 1099 forms as magnetic media using the FIRE portal is optional for cloud users. However, it's the only available option for on-premises users because the Microsoft security certificate for A2A communication can only be used in the cloud.
To prepare magnetic media for submission, follow these steps:
- Choose the icon, enter IRS 1099 FIRE, and then choose the related link.
- On the request page, specify the tax year for the 1099 forms that you want to report in the Calendar Year field, and the control code of the transmitter that is used to electronically file 1099 forms in the Transmitter Control Code field.
- Fill in the other fields as necessary, and choose OK.
Note
If you want to test this feature, select the Test File field to print a test file.
Print the document
After calculation, you can use the Print action to print the document. When you print the report, you can choose which copy to print. You have the following options:
- Copy B is for the vendor.
- Copy C is for the sender.
- Copy 2 is the second copy for the vendor.
Make corrections
When you send information to the IRS, some checks happen in the background to help ensure that the transmission contains the required information, and that the information is correctly formatted. If the transmission contains an error, it's status changes to Rejected. To learn more about handling rejected transmissions, go to Correct a rejected transmission.
However, the background checks don't verify values, such as amounts. If you discover that you submitted an incorrect amount in an accepted transmission, you can correct the amount and resubmit. To learn more, go to Correct an accepted transmission.
Transmission statuses
After you send a transmission, the IRS returns one of the following statuses on the IRIS Transmission page:
- Accepted: The IRS successfully processed and accepted the transmission.
- Rejected: The IRS rejected the transmission because it couldn't be processed successfully. Use Send Replacement to resubmit the entire transmission.
- Processing: The IRS is still processing the transmission. Check the status again later.
- Partially Accepted: The IRS processed the transmission and accepted some submissions while rejecting others as unusable data.
- Accepted with Errors: The IRS successfully processed and accepted the transmission, but with errors on one or more submissions.
- Not Found: The IRS didn't find the Receipt ID or the UTID in the request.
In addition to the statuses returned by the IRS, the IRIS Transmission page can show the following internal statuses:
- None: The transmission is created in Business Central but isn't sent yet.
- Unknown: The status returned by the IRS couldn't be interpreted.
Refresh the transmission status
If the transmission is in the Processing state, or the status didn't update automatically after sending, you can request the current status from the IRS on the IRIS Transmission page:
- Request Status uses the Receipt ID that the IRS returned when you sent the transmission. Use this action in most cases.
- Request Status by UTID uses the Unique Transmission ID instead of the Receipt ID. Use this action when the Receipt ID is missing – for example, when a prereceipt validation error (such as an XML schema validation error) prevented Business Central from saving it. The UTID is selected automatically from the latest transmission attempt.
Note
The Request Status by UTID action is hidden by default. Use page personalization to show it when you need it.
Recover a lost Receipt ID
If the Receipt ID is missing because the session was interrupted or the value was deleted, contact the IRIS help desk with your Unique Transmission ID (visible on the Transmission History page) to retrieve the Receipt ID. Then, on the IRIS Transmission page, choose Assign Receipt ID and enter the value. After the Receipt ID is assigned, you can use Request Status to refresh the transmission status.
Troubleshoot authentication errors
If a Send or Request Status action fails with 401 Unauthorized, your IRIS OAuth tokens might be stale. To recover:
- On the IRIS Transmission page, choose Clear OAuth Tokens. The action is hidden by default; use page personalization to show it.
- Try the action again. Business Central requests new tokens automatically the next time you send or request status.
- If the error persists, on the Setup IRIS User ID page, reenter your IRIS User ID.
Review transmission history
The Transmission History page lists every send, replacement, correction, and status request for the period, together with the Unique Transmission ID assigned by Business Central and the Receipt ID returned by the IRS. From this page, you can also download the raw payloads exchanged with the IRS for support and audit purposes:
- Download Transmission Content: the XML file that Business Central sent to the IRS.
- Download Response Content: the immediate response returned by the IRS for the send request, in XML or JSON format.
- Download Acknowledgement Content: the acknowledgment returned by the IRS when processing is complete, in XML or JSON format. The acknowledgment contains the transmission and submission statuses, together with any errors reported by the IRS.
Correct a rejected transmission
If the IRS finds an error in your transmission, on the IRIS Transmission page, the status of the transmission becomes Rejected. If that happens, use the Show error(s) link to open the Error Information page, where you can find out what to fix. After you correct the error, choose the Send Replacement action to resubmit the information. Repeat these steps until the status of the transmission becomes Accepted. To view a history of your attempts to submit, choose the Transmission History action.
Correct an accepted transmission
If you discover a mistake after the IRS accepted your submission, for example, you submitted incorrect amounts for some vendors, you can correct the error and resubmit.
To correct a mistake and resubmit, follow these steps:
Select Search (Alt+Q)
in the upper-right corner, enter IRIS Transmissions, and then choose the related link.Open the 1099 document that you want to correct, and choose the Allow Correction action.
Choose the Reopen action, make your correction, choose the Release action, and then close the page.
On the IRIS Transmission page, the Needs Correction checkbox is selected for the lines you corrected.
To resubmit the lines, choose the Send Correction action. Business Central only sends the lines you corrected.
Tip
The Corrected field is useful for double-checking that the correction was made. If a line was corrected and accepted by the IRS, the field contains Yes.
Note
Use Send Replacement when the IRS rejected the entire transmission – it resubmits the original payload as a replacement. Use Send Correction after the IRS accepted the transmission – it submits only the lines that you marked with Allow Correction and re-released. Replacements address transmission-level rejections; corrections address per-record fixes after acceptance.
Choose the right correction action
The IRIS Transmission page provides three correction actions, depending on what you need to fix:
| Action | When to use it |
|---|---|
| Send Correction | A line was accepted with the wrong vendor name, TIN, or amount. Business Central sends only the lines you marked with Allow Correction and re-released, with the corrected values. |
| Send Zero Amounts Correction | You shouldn't have filed a 1099 form for a vendor at all. Business Central sends the marked lines as a correction with zero amounts, which removes the filing. |
| Two-Step Correction | The form type itself was wrong. For example, you filed a 1099-MISC instead of a 1099-NEC. The two steps are: Step 1: Send Zero Amounts Correction zeros out all lines in the original transmission, except open and abandoned ones. Step 2: Send Corrected submits a new original transmission for the same period with the correct form type. |
Tip
The Two-Step Correction group on the IRIS Transmission page also includes a Help action that describes the process inside the product.
Email automation
Prerequisites
Note
You can only send the document via email if its Status is Released or Submitted. This restriction helps you avoid sending an unreleased document to the vendor.
To send forms to your vendor, you must set up the consent and the email on the Vendor Card page. These settings include enabling the Receiving 1099 E-Form Consent field to acknowledge that your vendor provided signed consent to receive their 1099 form electronically using email.
Note
If your vendor gives consent for delivering 1099 forms via email, you can use the E-Mail For IRS field, but you can also keep this field blank and fill-in the standard E-Mail field. It's for sending instead.
When the form document is created for a certain vendor, the values are inherited from the vendor card. You can see the values on the Email FastTab of the document if you select Show more. After you create the document, you can't change the consent value in the document, but you can change the e-mail if needed. You can also change default values on the Vendor Card page. Business Central applies these changes to all 1099 form documents with the Status is Open if you confirm with Yes.
Note
Before you send emails, you must configure your email accounts on the Email Accounts page.
Send emails
To send 1099 form to a specific vendor, you can do so from the chosen 1099 Form Document by choosing the Send Email action. It's also possible to automate this process, and to send emails for multiple 1099 documents. To do that, open the IRS 1099 Form Documents list page, select one or more documents, and choose the Send Email action.
After you run the Send Email action, select the report type you want to send. You can choose Copy B or Copy 2 (required in some situations). By default, the system sends emails to vendors only one time. If you want to send emails for all selected documents (and resend some of them), enable the Resend Email option on the request page.
After you select OK, an email is sent immediately for one document or, if you're sending multiple emails, it will be scheduled through the Job Queue Entry. If the email is sent successfully for a certain document, the Copy B Sent or Copy 2 Sent flag is set on the IRS 1099 Form Document page.
If you try to send email for only one document and sending failed, an error dialog displays. If you try to send email for multiple documents and sending fails, the error is logged to the Email Error Log field on the IRS 1099 Form Document page. When the job for sending multiple documents is finished, the results are recorded in the activity log. To open the Activity Log page, choose the Activity Log action on the IRS 1099 Form Documents page.