Article

Dynamics 365 Business Central 1099 Readiness Checklist for 2025

by Kim Dallefeld
MVP, MCT, CEO, Centre Technologies
IRS

Microsoft Dynamics 365 Business Central has changed the structure of 1099s. This began in version 26 and continues today for last minute touches. If you have not prepared for the changes, there are processes to automate the data conversion so you will be ready to file electronically with the IRS for 2025. Some companies are choosing to continue with the old way for this year and are just getting prepared for January 1, 2026. 

These readiness tips are for those wanting to process 1099’s for 2025 but they can also be used in preparation for 2026.

1. Verify Business Central Version

Ensure you are running at least version 27.0. If you are on an earlier version and do not plan to upgrade before 1099 processing, partner assistance might be required for the data conversion execution.

2. Set IRS Reporting Period

The IRS Report Period is the anchor of each year’s 1099 data. Confirm the IRS Reporting Period is configured for 2025.

3. Validate Vendor Setup

Check that all vendors have a 1099 Form and Form Box assigned. This can be reviewed on the Vendor Card or under Vendor Setup within the IRS Reporting Period.

4. Obtain Vendor Email Consent

Distribute email approval requests to vendors to confirm consent for electronic delivery and verify the correct email address.

Tip: Sending a standardized form for approval and email address confirmation is recommended. This step is typically the most time-consuming.

5. Create IRS IRIS Account

Set up your IRIS account with the IRS. Business Central provides guidance for entering data both in BC and on the IRS site. This account is required for uploading 1099 data in January.

6. Prepare for Next Year

After completing vendor setup, create the IRS Reporting Period for 2026. Invoices and credit memos posted in 2026 will apply to 2026 1099s when paid.

Note: You can preview 1099s by generating draft documents. These can be recreated as needed.

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About Kim Dallefeld

Senior NAV Consultant certified in Dynamics NAV 28 years ago. My goal is to empower companies to get the most out of NAV or BC. Combining years of NAV/BC practical knowledge with accounting, consulting and development background, I bring a unique set of skills rarely found in a technically oriented individual.

Bridging gaps; that's my forte. Identifying what users really need/want in BC to get the blueprint. Preparing a detailed comparison of user's needs versus what BC 'out-of-the-box' will do, lays the foundation of the project. Assisting analysts in how to configure BC to meet the user's requirements is the plumbing and electrical for the system. My developer skills let me build the walls to meet the user requests and so that developers put a roof on correctly! Then I can manage the project and provide communication to keep work on track, on time and on budget.

Giving back to the NAV/BC community is my passion. My blog kimdandnavbc.com offers documents, most of which are ‘how-tos’. I also share documents also on dynamicscommunities.com and I’m the female member of the BC 3 Amigos youtube podcast. I love speaking at DynamicsCon LIVE, Directions, the BC/NAVUG Monthly Meetings (their virtual), Summit Roadshows and Summit. It’s fun to share learned experiences with other users to help them in their BC journey.

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