Create E-File

Form ID: (AP507500)

Note:

This form is available only if the 1099 Reporting feature is enabled on the Enable/Disable Features (CS100000) form.

By using this form, you can generate a file that contains the Form 1099-MISC or Form 1099-NEC information on all your 1099 vendors for providing it to the Internal Revenue Service (IRS) electronically.

Before you prepare the necessary e-file—Form 1099-MISC or Form 1099-NEC in the electronic format prescribed by the IRS—you need to select the company or branch to be used when the system generates the e-file. This company or branch is used to form the transmitter record, the 1099 year, and other needed settings. You then select a 1099 vendor or multiple 1099 vendors in the table and click Process, which generates the e-file. You need to upload this file to the IRS website by using the Filing Information Returns Electronically (FIRE) system. For details, see Filing the 1099 Forms Electronically.

If you generate the e-file by clicking Process All, the system does not necessarily include all vendors. Instead, it includes in the file the information of only the appropriate 1099 vendors, based on the format you select in the File Format box as follows:

MISC: This format includes all boxes except for Box 7, so only vendors with these boxes filled in are included in processing.
NEC: This format includes only Box 7, so vendors with only this box filled in are included in processing.

For example, suppose that all 1099 vendors had only Box 7 populated. If you selected MISC in the File Format box and clicked Process All on the form toolbar, the e-file would be empty.

You can also generate a test file or a correction file by selecting the appropriate check box in the Summary area.

Form Toolbar

The form toolbar includes standard and form-specific buttons and commands. For the list of standard buttons, see Form Toolbar and More Menu. The form-specific commands are listed in the following table.


Button	Description
Process	Processes the selected vendors (that is, those for which you have selected the check box in the unlabeled column of the table) and generates Form 1099-MISC or Form 1099-NEC in the electronic file format, which then needs to be uploaded manually to the IRS FIRE site.
Process All	Processes all listed vendors and generates Form 1099-MISC or Form 1099-NEC in the electronic file format, which then needs to be uploaded manually to the IRS FIRE site.

Selection Area

In this area, you can specify the companies and the 1099 year for which you are preparing the e-file, and select any needed check boxes that define the type of the required file (for example, a test file or a correction file).


Element	Description
Transmitter	The company or branch whose information will be used to create the transmitter record in the file. This box appears on the form if the Multibranch Support, Multicompany Support, or both features are enabled on the Enable/Disable Features (CS100000) form.
1099 Year	The reporting year (which is always a calendar year) during which information on Form 1099-MISC or Form 1099-NEC payments was collected. A 1099 year is initialized by the system when a user enters the first transactions for a 1099 vendor.
File Format	The format of the electronic file. The following options are available: MISC (default): The system prepares the e-file in the Form 1099-MISC format. NEC: The system prepares the e-file in the Form 1099-NEC format. Note: If you select 2019 or an earlier year in the 1099 Year box, MISC is automatically selected in this box and cannot be changed.
Prepare For	A setting that defines the companies for which 1099 data should be included in the file. The following options are available: Transmitter Only: The 1099 data of only the branch specified as the transmitter will be used to generate the payer record in the file. All Marked Companies: The 1099 data of all companies that have the 1099-MISC Reporting Entity check box selected on the Companies (CS101500) form will be used to generate the payer records in the file.
Include	The way the e-file will be prepared with regard to non-employee compensation (NEC). The following options are available: All Boxes (default): The system prepares the e-file for all vendors with all boxes displayed; the amounts in the NEC01 1099 box are not given special consideration. Only Nonemployee Compensation: The e-file will include only data from the NEC01 Nonemployee Compensation 1099 box (and thus only vendors for which this box is filled in). Even if multiple boxes are filled in for a vendor, if this option is selected, only the NEC01 amounts for the vendor will be shown in the e-file. Except Nonemployee Compensation: The e-file will include data from all boxes except NEC01 Nonemployee Compensation. If multiple boxes are filled in for a vendor, if this option is selected, all these boxes except NEC01 will be shown in the e-file. Note: This box is unavailable for editing for a 1099 reporting year that is 2020 or later. In this case, All Boxes is automatically selected.
Prior Year	A check box that must be selected for 1099 data of a previous reporting year to be accumulated in the e-file.
Correction File	A check box that indicates (if selected) that the e-file being created is a correction file. That is, the file that contains only the records that are being corrected—not the entire file. A correction file is to be created if it was found that an e-file that was previously processed and submitted contains incorrect information and should be corrected.
Last Filing	A check box that indicates (if selected) that this is the last year this payer will file information returns (Form 1099-MISC or Form 1099-NEC).
Direct Sales Only	A check box that indicates (if selected) that the generated file will contain information on 1099 vendors for which the 9-Direct Sales option is selected in the 1099 Box on the Vendors (AP303000) form. This check box is cleared and read-only if NEC is selected in the File Format box of the current form.
Test File	A check box that indicates (if selected) that the test file that you need to upload to the FIRE test system will be generated.

Table

In this table, you can view the list of 1099 vendors of the selected branch to which payments were made in the selected 1099 year, and the amounts that were paid to each 1099 vendor.

Table 1. Table Toolbar
The table toolbar includes standard buttons and buttons that are specific to this table. For the list of standard buttons, see Table Toolbar. The table-specific buttons are listed below.
Button	Description
View 1099 Vendor History	Opens the 1099 Vendor History (AP405000) inquiry form for the selected branch and the 1099 year. This inquiry form contains information on the selected 1099 vendors.

Table 2. Table Columns
Column	Description
Included	An unlabeled check box that you select to include the vendor in the current row in the e-file when you click Process (or Process All, which includes all listed vendors).
Vendor	The identifier of the 1099 vendor.
Vendor Name	The name of the 1099 vendor.
Amount	The amount of the document.
Tax Registration ID	The vendor’s Taxpayer Identification Number (TIN) or Social Security Number (SSN).
Payer	The company that paid the vendor.
State	The state of the 1099 vendor, which is specified in the State box on the General tab of the Vendors (AP303000) form. Note: This column is hidden by default. You can display this column in the table by using the Column Configuration dialog box. For details, see Table Layout: Process Activity.