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NOTE: SOFTWARE MUST BE AT LEAST ON v2020.12.15 TO APPLY THIS UPDATE.

Release Notes

Important

The below items will be coming in a future release and in accordance with IRS/SSA/State/Territory deadlines.
- Puerto Rico eFiling (499R-2), ACA eFiling (1095-B & 1095-C), & 1042-S Service Bureau.
- All other Puerto Rico forms for importing, printing, and eFiling.

NEW:

ACA
- The 1095-B & 1095-C were updated for Tax Year 2020 changes for form entry, importing, and printing.
  - Please see this link for more information on the form changes - https://www.1099pro.com/news_article/ACA1095ComplianceUpdate2020
  - IRS Electronic Filing is not yet available for these forms and will be updated in a future release.
Puerto Rico
- The 499R-2 was updated for Tax Year 2020 for form entry, importing, and printing.
- Electronic filing is no yet available for this form and will be updated in a future release.
2021 IRS/SSA Updates
- Tax Year 2021 preliminary forms are available for form entry, imports, and reports.
- 1099-MISC, 1099-NEC, 1099-DIV were modified by the IRS. All other forms remain the same at this time.
Business Rules & Validation
- 1099-NEC - New Rule R10: Fed and State w/h greater than NEC. (CS-3062)
Service Bureau
- Now enabled for printing, mailing, electronic filing, and Bulk TIN uploads.
- 1042-S is not currently enabled.
Service Bureau - State Filing:
- A brand new 1099-NEC State Direct Reporting feature has been added. For complete details, additional pricing, and important limitations, please see - Service Bureau - State Reporting Details.
  - Example: Add-On checkbox during a Service Bureau "Print, Mail, and File" upload or a Service Bureau "Electronic Filing" upload.
  - Example: Service Bureau "Filing with the State Upload" new upload type. Use this option for only submitting 1099-NEC state direct files.

State Filing:
- An extra tab was entered to the Filers record called "State Fields". This field captures special information for Iowa (IA), Idaho (ID), and West Virginia (WV) that must be entered in order to accurately file with the states. (CS-3041)
  - Previously, these fields were blank/zero filled and had to be edited after the electronic file was created.
  - To find this tab, please go to "Manage" filers → Select a Filer → Click on the "State Fields" tab → Click "Add". More information is also in the Help File under the "Special Cases for State Reporting" topic.
  - An example of this feature, for Iowa (IA), is below. It depicts how to enter your Business eFile Number (BEN) into the software.

UPDATED:

State Filing:
- 1099-NEC Related:
  - Connecticut (CT) - Released finalized specifications that require the State ID Number for the 1099-NEC. (CS-3078)
    - B Record, Positions 663-722: State ID Number
  - Georgia (GA) - Released finalized specifications that require the State ID Number for the 1099-NEC. (CS-3079)
    - B Record, Positions 663-671: State ID Number
  - Maryland (MD) - State Tax Withheld information was not flowing through to the electronic file (B Record) for the 1099-NEC. This has been fixed. (CS-3082)
  - Mississippi (MS) - Released an updated spec that makes one change to the 1099-NEC B Record (1099-NEC ONLY). (CS-3088)
    - B Record, Positions 735-750: Blank Fill
  - North Dakota (ND) - State Tax Withheld information was not flowing through to the electronic file (B Record) for the 1099-NEC. This has been fixed. (CS-3083)
- Vermont (VT) - Updated electronic filing process to use a special State ID Number (Filer EIN w/no dashes) whenever all of the below criteria are true: (CS-3086)
  - There is not an existing State ID Number already populated on the record.
  - There is not an existing State ID Number in the Filer table (different than being on the individual record).
  - There is no state tax withheld on the record.
- Wisconsin (WI) - Updated the electronic filing process to use a special State ID Number ("036888888888801") whenever all of the below criteria are true: (CS-3084)
  - There is not an existing State ID Number already populated on the record.
  - There is not an existing State ID Number in the Filer table (different than being on the individual record).
  - There is no state tax withheld on the record.
- Iowa (IA) - The software will now output a new file for each Payer Code in the electronic filing process. (CS-3112)
  - This is because each filer should have it's own BEN in the filename that is created.
- Oklahoma (OK) - Added OK to the file name, in the removable section, to more easily identifiable which state the electronic file is for.
State Thresholds:
- Virginia (VA) - 1099-K threshold to $600 or state tax withheld for Third Party Settlement Organizations.
- Vermont (VT) - 1099-NEC threshold to State Withholding > 0 if the Recipient State is VA, otherwise all amounts are reported.

FIXED:

Form View
- Custom 1099-NEC fields (amounts and checkboxes) had a distorted display for protected forms (forms in a printed/filed status). (CS-3127)