BQE CORE has updated its reporting feature to support the IRS forms 1099-MISC, 1099-NEC, 1099-INT, 1096, and 1099/1096 Preparation reports for the 2025 tax year. By following the suggested guidelines, you can ensure that your 1099 and 1096 forms are set up and generated accurately and comply with the current IRS requirements.
Step 1: Managing Vendor Tax Information
To ensure accurate reporting, review and complete the tax details for each vendor before generating your 1099 or 1096 reports. This can be done as follows:
- Open the Vendors screen from the side menu > Contacts and select the relevant vendor profile on the grid.
- In the detail view, go to the Tax Information tab and make sure to enter the following details.
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- Tax Identification Number (TIN): Choose the correct formatting (EIN or SSN).
- FATCA checkbox: Select if the vendor is subject to Foreign Account Tax Compliance Act requirements.
- Recipient Name: If the 1099 recipient name differs from the vendor’s business name, specify it here. CORE displays the 1099 Recipient Name on the 1099-MISC and 1099-NEC forms when the Use 1099 Recipient Name on 1099 Reports option is enabled.
Note: Checking Track payments for 1099 option allows you to identify the vendors that need the 1099 -MISC forms to report the payments made to them.
Note: Formatting of the Tax ID Number here is dependent on the TIN Format options (Global Format, SSN, or EIN) in CORE. All 1099 forms follow the TIN Format selected in Vendor > Tax Information.
Step 2: Map Chart of Accounts to Form Fields
To ensure that the correct amounts are reported on the 1099 forms, you must map the appropriate accounts from your Chart of Accounts to the relevant IRS categories. This ensures that the amounts are correctly assigned to the right sections of the forms. The applicable accounts are typically the expense accounts related to the 1099 vendors.
- Go to Accounting > Chart of Accounts and select the relevant account for which you need to set the IRS Form 1099 Category field to the corresponding categories for 1099-MISC and 1099-NEC (Non-Employee Compensation). You can also assign the Interest Income category for 1099-INT reporting, which populates Box 1 of Form 1099-INT. In addition, CORE also supports additional IRS 1099-MISC categories, providing greater flexibility when mapping accounts for reporting.
- On its General tab, the IRS Form 1099 Category field defaults to being blank. If you leave it blank or choose Excluded, payments associated with the G/L account will not be included in 1099/1096 reporting.
Step 3: Setting Up State Tax Details
If your company is required to report state-level tax information, go to Settings > Company > Information. Here, you can record the State and State Tax ID, which are referenced on Form 1099 for applicable states. When California state tax is withheld, CORE automatically displays California State Withholding, California State Income, and California State Tax ID on the 1099-MISC and 1099-NEC forms to ensure accurate state reporting.
Step 4: Generate the Reports
When you have mapped the accounts (Chart of Accounts) and verified the vendor information in CORE, you can now generate the forms and prepare them for submission to the IRS.
- To view and print reports, open Report Center from the side menu > Reports.
- On the Select Template screen, choose Accounting or Tax area from the Templates list and then IRS Forms > 1099-MISC, 1099-INT, or 1099-NEC from the Templates list.
- Then click Configure Report on the top-right.
- On the Configure Report screen, select the appropriate filters and display options for each form. Then click Run.
- Enter Year: The relevant tax year, say 2025
- Threshold Amount: Limits reporting to vendors that received payments of at least this amount (the current IRS guidance is $600)
Show Vendors: Select 1099 Only to only print 1099s for vendors for which the Track payments for 1099 option is selected
The report is displayed in the viewer on another tab or window.
- Similarly, select 1096 report from the Templates list and click Configure Report as before.
- Under Set Filters, choose a form type from the Category. You can select between 1099-MISC, 1099-INT, and 1099-NEC categories. By default, NEC is selected.
- Click Run.
Step 5: Print the Forms
Load the appropriate pre-printed forms into a printer:
- For 1099-MISC: Ensure you are using pre-printed 1099-MISC forms that support two vendors per page. Generate the 1099-MISC report, and ensure it is set to print on 8.5 x 11-inch form with the correct layout (2 vendors per page).
- For 1099-NEC: Ensure you are using pre-printed 1099-NEC forms that support 3 vendors per page. Generate the 1099-NEC report, and ensure it is set to print on 8.5 x 11-inch form with the correct layout (3 vendors per page).
- For 1099-INT: Ensure you are using the standard IRS 1099-INT pre-printed form layout (one vendor per page). Ensure the report is set to 8.5 × 11-inch form with the correct layout.
- For 1096: Ensure you are selecting the correct type (NEC or MISC) on the form. Use the toggle to select between 1099-MISC and 1099-NEC categories. The default option is NEC.
Note: When printing these forms, ensure your printer settings are configured as follows:
- Set the Paper Size to 8.5" x 11" (Letter size).
- Choose the Orientation as Portrait.
- Set the Fit option to Actual Size.
- To verify box calculations, ensure the number of forms generated matches the number of forms listed in Box 3. Also, make sure that the sum of amounts reported for each form category matches the total amount listed in Box 5.
Note: If 1099-NEC is selected, Box 71 will be checked, and the total number of NEC forms and associated amounts will be calculated. If 1099-MISC is selected, Box 95 will be checked, and the total number of MISC forms and associated amounts will be calculated. If 1099-INT is selected, totals reflect Interest Income based on amounts in Box 1 of Form 1099-INT. Form 1096 does not use Boxes 71 or 95 for 1099-INT.