Sage 100

This isn't a new issue. However, I have had a few customers who are processing 1099 forms call asking what tax ID number they should put into the system when Aatrix requests a state account number.

According to Sage KB 56268

The following states now require that the State Identification Number be defined in Company Setup via Aatrix for printing to the 1099 forms correctly.

• LA - Louisiana State Identification Required in Company Setup via Aatrix eFiling Program
• MT - Montana only requires the 2 letter State Code which Aatrix automatically populates on all 1099's by default
• OR - Oregon State Identification Required in Company Setup via Aatrix eFiling Program
• PA - Pennsylvania State Identification Required in Company Setup via Aatrix eFiling Program
• VT - Vermont State Identification Required in Company Setup via Aatrix eFiling Program
• WI - Wisconsin State Identification Required in Company Setup via Aatrix eFiling Program

------------------------------
Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Moodus, CT
------------------------------

And PA and WIL will reject their forms if you don't have a proper one.  One of my client's failed the upload to these two states.  They ignored the Aatrix notification.  What is the business case for states requiring an out of state company to register for an account when they don't have nexus?  Seens counter productive.

------------------------------
Jeff Schwenk
Bottomline Software, Inc.
(540) 221-4444
------------------------------

One of my customers ran into this two or three years ago ( pre-pandemic ), so it's not a new issue. I think the customer either did not send the 1099 to people in those states, or there was another way that they worked around this by changing the 1099 state. Their feedback was that they weren't opening any tax registration accounts to file 1099 forms.

From my CPA days, I know that I can never send 1099 without a tax ID number, so I usually told clients that if they didn't have the ID for a recipient, they were probably better just not sending it than sending it with no ID and receive an automatic penalty.

------------------------------
Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Moodus, CT
------------------------------

Not sending vs. sending without an ID was the recommendation I got.  I was told to have the client document the attempts they made trying to get the ID number so if there are questions down the road as to why they didn't file, they have documentation showing they tried.

------------------------------
Mary Jo Krueger
Senior Software Consultant
CLA (CliftonLarsonAllen LLP)
------------------------------

Original Message:
Sent: 02-01-2023 11:57
From: Wayne Schulz
Subject: How are you processing 1099 forms when Aatrix asks for a state ID number that your customer isn't already registered in?

One of my customers ran into this two or three years ago ( pre-pandemic ), so it's not a new issue. I think the customer either did not send the 1099 to people in those states, or there was another way that they worked around this by changing the 1099 state. Their feedback was that they weren't opening any tax registration accounts to file 1099 forms.

From my CPA days, I know that I can never send 1099 without a tax ID number, so I usually told clients that if they didn't have the ID for a recipient, they were probably better just not sending it than sending it with no ID and receive an automatic penalty.

------------------------------
Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Moodus, CT
------------------------------

None of my clients withhold state income tax.  For the states that require a withholding number, I have them uncheck the filing selection for that state.  I tell my clients if they want to get a withholding number for the state to get back with me for additional help after the 1099's are originally filed.  They all say screw those states.  It's not a big deal since there are no state withholdings.  The IRS shares documentation with almost all states.

------------------------------
[Michele] [Herzog] [CPA,CITP, CGMA]
[Overland Park] [KS]
[816-520-1365]
------------------------------

Original Message:
Sent: 02-01-2023 12:00
From: Mary Jo Krueger
Subject: How are you processing 1099 forms when Aatrix asks for a state ID number that your customer isn't already registered in?

Not sending vs. sending without an ID was the recommendation I got.  I was told to have the client document the attempts they made trying to get the ID number so if there are questions down the road as to why they didn't file, they have documentation showing they tried.

------------------------------
Mary Jo Krueger
Senior Software Consultant
CLA (CliftonLarsonAllen LLP)
------------------------------


Original Message:
Sent: 02-01-2023 11:57
From: Wayne Schulz
Subject: How are you processing 1099 forms when Aatrix asks for a state ID number that your customer isn't already registered in?

One of my customers ran into this two or three years ago ( pre-pandemic ), so it's not a new issue. I think the customer either did not send the 1099 to people in those states, or there was another way that they worked around this by changing the 1099 state. Their feedback was that they weren't opening any tax registration accounts to file 1099 forms.

From my CPA days, I know that I can never send 1099 without a tax ID number, so I usually told clients that if they didn't have the ID for a recipient, they were probably better just not sending it than sending it with no ID and receive an automatic penalty.

------------------------------
Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Moodus, CT

Same here @Michele Herzog and I make sure to put into writing that I am not in the business of providing tax or accounting advise so they should contact their financial advisor for final advice.​

------------------------------
Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Moodus, CT
------------------------------

Original Message:
Sent: 02-02-2023 00:59
From: Michele Herzog
Subject: How are you processing 1099 forms when Aatrix asks for a state ID number that your customer isn't already registered in?

None of my clients withhold state income tax.  For the states that require a withholding number, I have them uncheck the filing selection for that state.  I tell my clients if they want to get a withholding number for the state to get back with me for additional help after the 1099's are originally filed.  They all say screw those states.  It's not a big deal since there are no state withholdings.  The IRS shares documentation with almost all states.

------------------------------
[Michele] [Herzog] [CPA,CITP, CGMA]
[Overland Park] [KS]
[816-520-1365]
------------------------------


Original Message:
Sent: 02-01-2023 12:00
From: Mary Jo Krueger
Subject: How are you processing 1099 forms when Aatrix asks for a state ID number that your customer isn't already registered in?

Not sending vs. sending without an ID was the recommendation I got.  I was told to have the client document the attempts they made trying to get the ID number so if there are questions down the road as to why they didn't file, they have documentation showing they tried.

------------------------------
Mary Jo Krueger
Senior Software Consultant
CLA (CliftonLarsonAllen LLP)


Original Message:
Sent: 02-01-2023 11:57
From: Wayne Schulz
Subject: How are you processing 1099 forms when Aatrix asks for a state ID number that your customer isn't already registered in?

One of my customers ran into this two or three years ago ( pre-pandemic ), so it's not a new issue. I think the customer either did not send the 1099 to people in those states, or there was another way that they worked around this by changing the 1099 state. Their feedback was that they weren't opening any tax registration accounts to file 1099 forms.

From my CPA days, I know that I can never send 1099 without a tax ID number, so I usually told clients that if they didn't have the ID for a recipient, they were probably better just not sending it than sending it with no ID and receive an automatic penalty.

------------------------------
Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Moodus, CT

Makes sense.  The 1099 income is included in the federal adjusted gross income which gets reported on the state return.  No reason for the state to duplicate the effort of the IRS.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
------------------------------

Original Message:
Sent: 02-02-2023 00:59
From: Michele Herzog
Subject: How are you processing 1099 forms when Aatrix asks for a state ID number that your customer isn't already registered in?

None of my clients withhold state income tax.  For the states that require a withholding number, I have them uncheck the filing selection for that state.  I tell my clients if they want to get a withholding number for the state to get back with me for additional help after the 1099's are originally filed.  They all say screw those states.  It's not a big deal since there are no state withholdings.  The IRS shares documentation with almost all states.

------------------------------
[Michele] [Herzog] [CPA,CITP, CGMA]
[Overland Park] [KS]
[816-520-1365]
------------------------------


Original Message:
Sent: 02-01-2023 12:00
From: Mary Jo Krueger
Subject: How are you processing 1099 forms when Aatrix asks for a state ID number that your customer isn't already registered in?

Not sending vs. sending without an ID was the recommendation I got.  I was told to have the client document the attempts they made trying to get the ID number so if there are questions down the road as to why they didn't file, they have documentation showing they tried.

------------------------------
Mary Jo Krueger
Senior Software Consultant
CLA (CliftonLarsonAllen LLP)


Original Message:
Sent: 02-01-2023 11:57
From: Wayne Schulz
Subject: How are you processing 1099 forms when Aatrix asks for a state ID number that your customer isn't already registered in?

One of my customers ran into this two or three years ago ( pre-pandemic ), so it's not a new issue. I think the customer either did not send the 1099 to people in those states, or there was another way that they worked around this by changing the 1099 state. Their feedback was that they weren't opening any tax registration accounts to file 1099 forms.

From my CPA days, I know that I can never send 1099 without a tax ID number, so I usually told clients that if they didn't have the ID for a recipient, they were probably better just not sending it than sending it with no ID and receive an automatic penalty.

------------------------------
Wayne Schulz
wayne@s-consult.com
Schulz Consulting
(860) 516-8990
Moodus, CT