IRS 1099 and IRS 1096: How to prepare and print in Microsoft Dynamics 365 Business Central

December 28 2022

The preparation and printing of IRS 1099 and IRS 1096 forms doesn’t need to be a major event, especially when using Microsoft Dynamics 365 Business Central (BC). Using the step-by-step approach in this article will make the January 31 deadline easier to meet. Included are eight personal insights from supporting 1099 reporting activities in Dynamics NAV and BC for close to 20 years. For example, we can quickly find total paid to each vendor in the tax reporting year for comparing to the amount that will report on 1099 forms.

Let’s start by running a report to tell us how prepared we are right now to print 1099s at the end of January. Don’t worry, if you find missing vendors or amounts, the steps to take to find the problems and make them right are listed below.

Step 1 – Check your Business Central version

Has your BC been updated to handle any new 1099 and 1096 form requirements? If you received the last update on Azure, you’re all set. If you are not on Azure, click here  to get regulatory 1099 changes and details for Business Central.

Step 2 – Updates to 1099 Forms

Over the last few years, in addition to adding new form boxes, printing alignment, and the ability to print 1099-NEC, the following updates have been made for the preparation and printing of 1099 forms:

  1. When one or more entries have been posted with an IRS Code, a notification when you change that 1099 Code on a Vendor Card page was added. Accepting the notification will update the 1099 Codes for all associated entries (like purchase orders, journal lines, posted invoices, credit memos and vendor ledger entries).
    INSIGHT: This does not apply to entries without an IRS 1099 code, for example when initially adding an IRS 1099 code.
  2. The ability to schedule the update of the form boxes.

Once you have confirmed that all prior years have been printed and reported, go to 1099 Form Boxes, and run the Update Forms Boxes action. This creates a job queue entry to run the update that includes new box codes and other changes to the form.

After you run this function, you cannot report on prior years.

Step 3 – Form 1096 is now available to print in Business Central (finally!)

If you try to run the Form 1096, you may receive a notification that 1096 Forms is not yet enabled. This must be done by an administrator through Feature Management. From the wizard that runs on enabling this feature, create and assign a Number Series for 1096 Forms.

Step 4 - Run the Vendor 1099 Information report for all vendors

Go to the Vendors list page, choose the magnifying glass iconmagnifying glass icon, and enter the text Vendor 1099 Information. For some reason this report is only in your search result from here or a Vendor Card. I like to bookmark the Vendor 1099 Information report opened from the Vendor List page for easy reference.

On the report request page that opens, enter a Date Filter for the tax year you are reporting. If you opened the report from the Vendor Card, it will be filtered to this one vendor.

Step 5 – Determine 1099 amounts are correct

About Cynthia Priebe

Cynthia is a Senior Trainer and Consultant with New View Strategies, the go-to source for actionable training and process efficiency in Microsoft Dynamics 365 Business Central. Cynthia is recognized for her ability to look at operational and reporting challenges with a fresh take and propose solutions using core features and functionality. Focused for close to 20 years on Dynamics NAV and now D365 Business Central, she adores helping clients and partners with solving problems, enhancing productivity, and finding The Righter WayTM to work in Business Central. She is a regular presenter at industry conferences, on the original team to write the MB-800: Microsoft Dynamics 365 Business Central Functional Consultant certification exam, a Microsoft Certified Trainer, and a certified Microsoft Dynamics 365 Business Central Functional Consultant. You can reach Cynthia on LinkedIn.

At New View Strategies, all our experts have “been there, done that” – we are experienced, former users who have walked in your shoes. We  work with frustrated Business Central/NAV users who struggle to use their system and find the answers they need. We teach them to truly understand how the system can support their business processes to make immediate and lasting improvements, and as a result get more done in less time, make better business decisions, and even love their system. In addition to helping end users, New View Strategies offers Consultant Accelerator programs to help get new-to-BC consultants up, running, and billing as soon as possible. 

We can help, drive real change via a custom class delivered remotely or at your site, or choose from over 40 online and in-person classes at

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Cpriebe's picture

Thank you @Cari Corozza, I just learned from you that if paying a vendor by credit card, I don't need to issue a 1099. Learn more here:

marty.peterson's picture

In 2023 I am not sure why the form can't be printed with the data. What a pain it is to load a pre-printed form in a printer and try to get everything to align, then after it prints, cut the paper and mail out to the recipient. Some are 2 per page and some 1099's are even 3 per page.

Could there not be a few different report options where one can use pre-printed forms (as is the case today) or just print the form as part of the report and just print 1 up per page? Perhaps I am missing something here...

Cpriebe's picture

Since all 1099 forms are available in Report Layout Selections, having the ability to print the complete form is a partner or ISV opportunity for an app, if anyone even wants to take it on.

Office printers and printer types have differing printable area capabilities and therefore different placement of outlines, boxes, etc. of forms on a page. Documents provided by printing companies can accommodate a larger printable area on the same page as compared to what most office printers can do and are consistently the same. What you purchase preprinted is guaranteed to be scannable by the IRS.

The IRS even has a caution on its website NOT to print and use the forms from their site as it may not be scannable and a penalty may be incurred if they don't scan.

If a user has Visual Studio, the complete form could be designed and the new layout uploaded to BC for printing the entire form. But you have no guarantee it will be scannable by the IRS.

Your best bet is to purchase the forms or submit electronically.