1099 Changes for Tax Year 2023 (Info for Dynamics GP Users)

There have been some changes for handling 1099s for tax year 2023 that are relevant to Dynamics GP users. In this blog, will provide basic info and links to resources about changes from the IRS, a new printing capability in the GP system, and some alternative options for electronic filing.

Table of Contents

IRS Electronic Filing Requirement Changes

For the tax year 2023, the IRS has reduced the electronic filing requirement threshold from 250 returns to 10 returns. If you need to file more than ten 1099 returns, you must file electronically.

You can access additional information on this change on the following IRS website: E-file Forms 1099 with IRIS | Internal Revenue Service (irs.gov).

Note: Microsoft Dynamics GP does not have 1099 electronic filing functionality.

IRS’s Information Returns Intake System (IRIS)

For the tax year 2023, the IRS will be providing a free, web-based filing system that will allow you to e-file up to 100 returns at a time. Details regarding the Information Returns Intake System (IRIS) can be found on the following link. E-file Forms 1099 with IRIS | Internal Revenue Service (irs.gov)

To use the IRIS Taxpayer Portal, you will need an IRIS Transmitter Control Code (TCC) to identify your business when you send e-file forms. Information on how to obtain this code can be found at the following link: Apply for an IRIS Taxpayer Portal TCC

Key points of the IRIS Taxpayer Portal:

  • E-File up to 100 returns at a time.
  • Enter manually or by .csv upload.
  • Download payee copies to distribute.
  • Keep a record of completed, filed, and distributed forms.
  • Save and manage issuer information.

Other 1099 Electronic Filing Software

Microsoft has provided a list of additional software options to electronically file 1099s in the blog post Microsoft Dynamics GP: 1099 Changes to expect -Get ready for Year-end 2023!!.

1099 Changes in the Dynamics GP 2023 US Year-End Update

Included in the November 2023 Microsoft Dynamics GP US Year-End Update (build 18.6.1695) is the ability to print all 1099 forms with lines and boxes, instead of needing to use pre-printed paper forms.

1099 Form with Boxes

If you use the “One Wide with Box” option for the 1099 types Dividend, Interest, Miscellaneous, and Nonemployee Compensation, then Microsoft Dynamics GP Version 18.6.1695 will print the 1099 form “Copy B” and the Vendor data.

The One Wide with Box option for 1099s in Dynamics GP Output for 1099 form Copy B

SQL View for 1099 SmartList

In the Microsoft Year-End 1099 blog, Microsoft Dynamics GP: 1099 Changes to expect -Get ready for Year-end 2023!!, Microsoft also provides a script to create a SQL View containing Vendor 1099 summary amounts. You can make use of that script to create a SmartList for verifying 1099 info or making an Excel file for one of the electronic filing options.

If you have any questions about handling 1099s with Dynamics GP, please contact us.

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