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Drake Accounting produces Form 1099-MISC for vendors based on payments throughout the year. The vendor must be set up and have at least one check printed and dated in 2019 or an ATF check recorded with a check date in 2019. Only payments made with a check date in 2019 appear in the vendor’s 2019 1099. 

E-filing Forms 1099-MISC created "on the fly" (OTF) (On the Fly > Federal Forms > Forms 1099) are similar in process as those created under the Payables module. After creating and completing an OTF 1099-MISC, be sure to Save or Save/Print. Next, when creating the upload file under e-Filings > 1099/1098 > Create File, select 1099-MISC on the right under On the Fly and complete the information within this screen. Click Create File. Complete the steps for uploading to the FIRE website. 

Please review the following for more information. 

Processing Forms 1099-MISC

  1. Go to Payables > 1099-MISC. The 1099-MISC process screen is displayed.
  2. Process 1099s either for all vendors at once (default) or individually.
    1. Select the check box to the left of the Name column header to process forms 1099 for all vendors.
    2. Clear the check box to the left of the Name column header, then select the individual vendors to process forms 1099 for those select vendors.
  3. Click Process. The processed forms 1099 display one to a page. Click Save to save processed 1099-MISC forms.

Printing Forms 1099-MISC

  1. Go to Payables > 1099-MISC. The 1099-MISC process screen displays.
  2. Process 1099s either for all vendors at once (default) or individually.
    1. Select the check box to the left of the Name column header to process forms 1099 for all vendors.
    2. Clear the check box to the left of the Name column header, then select the individual vendors to process forms 1099 for just those select vendors.
  3. After the 1099-MISC processes, click Save/Print at the top of the screen. This action shows the form in a print preview mode. Click Print at the top of the window.

Creating the 1099 Upload File 

  1. Go to e-Filings > 1099/1098 > Create File.
  2. On the right side of the window, select to create an upload file for a Vendor 1099-MISC (created under Payables > 1099-MISC based on payments throughout the year) or for Forms 1099 and 1098 created On the Fly (created from On the Fly > Federal Forms).
  3. Enter the correct Payment Year
  4. Enter the correct Transmitter Control Code (TCC) that you received from the IRS. 

    You cannot transmit until after you have received the TCC from the IRS.

    Before uploading 1099 and 1096 information to the IRS, you must:

    1. Get a Transmitter Control Code (TCC), and
    2. Register on the IRS’s FIRE web site.
  5. Under the File Indicator section, select if the 1099 file is an Original File, Replacement File, or a Test File.
    1. Select Original File if the information entered for the 1099 is the original data.
    2. Select Replacement File to replace a file that the IRS stated in writing that it could not be processed, or the IRS FIRE system indicated a file status of “Bad.”
    3. Select Test File if you plan to use the option to file the Combined Federal & State 1099-MISC, first select the Test File option. This option transmits the test file required by the IRS after you receive the TCC. 


      Use the Test File option between November 1 and February 15 only.

      Once the test file is received and approved, the IRS mails an acceptance letter. Once the IRS accepts the form, you can transmit the 1099-MISC. After the IRS approves a test file, return to e-Filings > 1099/1098 > Create File before transmitting an actual 1099. Click Original File in the File Indicator section.

  6. Under the Payer Information section, select any of the following options:
    • Last Year Filing the 1099
      • Select the box if this is the last year this payer will file returns electronically, magnetically, or on paper.
    • Combined Federal/State Program

      • Select this box when you receive approval. 
      • If your state participates in the federal/state 1099 program but accepts modified instead of standard Forms 1099, Drake Accounting e-files the federal 1099 only and not the state 1099. Do not transmit a test file and do not check the Combined Federal/State Program box.

        If your state does not participate in the federal/state 1099 program, you do not need to transmit a test file. Do not check the Combined Federal/State Program box.

        Refer to Sec. 12 of Pub. 1220, p. 25 to see if your state participates. 

    • Transfer Agent Indicator
      Check this option only if you are a trust company, bank, or similar financial institution assigned by a corporation to maintain records of investors, account balances and transactions, to cancel and issue certificates, to process investor mailings and to deal with any associated problems (lost or stolen certificates). 
      • When the Transfer Agent Indicator option is selected, the Transfer Agent Name and Address fields are activated and require entry.
  7. In the Selected Forms 1099 section, the applicable 1099s that are eligible for e-Files display, based on the File Type selected on the right. 
    • The State 1 Column fills based on the state selected on the 1099:

      FormBox on Form
      1099-BBox 14
      1099-DIVBox 13
      1099-INTBox 15
      1099-MISCBox 17
      1099-OIDBox 12
      1099-RBox 13
      W-2GBox 13
      The forms that aren't listed do not have the state combo box.
  8. Complete the Payer Account Number section:
    • Indicates Sales of $5000 or more for all 1099s reported
      • Select this box to indicate sales of $5,000 or more of consumer products to a person on a buy-sell, deposit-commission or any other commission basis for resale anywhere other than a permanent retail establishment.
    • Payer Account Number for Payee (required)
      • Enter any number assigned by the payer to the payee that can be used by the IRS to distinguish between information returns.
      • This information was entered on the Client > Edit > e-File Options tab and should automatically filled.
      • If not, enter an account number.
  9. Once the information on the window has been reviewed and is correct, click Create File
  10. The upload file name and locations displays. This information is needed to transmit the file to the IRS’s FIRE site.

Transmitting the 1099 Upload File

Go to e-Filing > Transmit File > Click IRS Fire.

  1. Once connected to the FIRE website, click Log On.
    1. Enter your User ID and Password (the password is case sensitive).
    2. Click Click here to continue.
    3. Click Send Information Returns.
    4. Enter your TCC and TIN.
    5. Click Submit.
    6. Click Accept.
    7. Click either Original File or Correction File.
    8. Click Submit.
    9. Enter your 10-digit PIN and click Submit.
    10. Click Browse to locate the file and open it.
    11. Click Upload.

  


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