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  • 1.  One or more of the states require a state account number

    Posted 01-31-2022 20:40
    When processing 1099's in the Aatrix efiling preparer, the user may receive the following error message: "One or more states require a state account number. Choose the Edit menu then Update."

    Cause

    <content>

    Due to changes in state filing requirements, the following states now require the company's state account number for withholding filings to be entered on the 1099 *even if there was no withholding for that state*:

    • Vermont (VI)
    • Louisiana (LA)
    • Oregon (OR)
    • Pennsylvania (PA)
    • Wisconsin (WI)
    </content>

    Resolution

    <content>

    Aatrix implemented this requirement approximately 1/7/2017.

    If you need to add a state ID follow the directions below.

    Please contact Tax Advisor or state agency for specific state 1099 filing requirements.

    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
      • MT 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
    </content>


    Presumably this KB isn't talking about using a company's home state tax ID.

    It appears if you come to the end of the year and are issuing 1099 forms and discover you are issuing a 1099 to someone in one of the above named states that you suddenly have to obtain a tax ID from that state? 

    Almost none of my customers want to open that can of worms and obtain a tax registration number from a state that they are probably not filing other returns with.

    How have you handled this? 
    Do you customers quickly obtain a tax ID? Do they just not send the 1099? Send the 1099 but omit the state tax ID for the states that Avalara prompts for? 

    Link to Sage KB 80577

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    Wayne Schulz
    Schulz Consulting
    860-516-8990
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  • 2.  RE: One or more of the states require a state account number

    Posted 02-01-2022 07:50
    Hm.  I've gotten that message at 3 places, but I know they all had an option to ignore it and move on and the processing completed.  That error you show doesn't leave any wiggle room.  ??????

    ------------------------------
    Beth Bowers
    Mom to Samson, Peanut, ChiChi, Canton, Cagney and Daisy (NO Oxford comma - shriek!)
    Tennessee Software Solutions
    269-445-1625
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  • 3.  RE: One or more of the states require a state account number

    Posted 02-01-2022 08:21
    I know there isn't a "skip" message on the error. I'm pretty sure I had at least one customer run into this in the pre-pandemic times when I was actually on-site helping with 1099 eFiling. 

    I can't remember how they got by this requirement and whether they just entered in their home state tax ID or if they just decided to not file those in the states where it was requesting the company's tax ID ( please note this is different than the RECIPIENT tax ID which naturally must always be provided or I believe you are automatically penalized ).

    I had another customer call a few days ago who received this message.

    The problem is that in 99% of the cases people are performing 1099 processing with about 2 weeks of time left before the forms are due. That's usually too short of a time for them to contact their CPA and ask if they should create a registration number in another state.


    I won't advise them one way or another other than they should contact their tax advisor. These sorts of decisions might trigger automatic penalties which I don't want to get into the middle of.

    ------------------------------
    Wayne Schulz
    Schulz Consulting
    860-516-8990
    ------------------------------

    Original Message


  • 4.  RE: One or more of the states require a state account number

    Posted 02-01-2022 08:39
    Edited by Billy Balser 02-01-2022 08:42
    I get this message on the majority of my filings. Not one of my customers applies for that number.
    I have done a little research for PA since that is the state I run into most often. There is no requirement to submit 1099s (MISC and NEC) with the individual tax return (unless there is withholdings) so I''m not even sure how the PA would monitor this requirement. I do know if you have payroll in PA and have a PA withholding number, you can use that number for the state ID. I'm also unsure if the ""requirement" is dependent on if the 1099 is for compensation for Pennsylvania-based work.

    Sorry about my post, I was speaking more towards the warning message received rather than the error you mentioned, Wayne.

    ------------------------------
    Billy Balser
    Sage 100 Consultant
    Blytheco LLC
    Atlanta GA
    9495839500
    ------------------------------



  • 5.  RE: One or more of the states require a state account number

    Posted 02-01-2022 09:04
    What version? I received this message with a couple of my customers this year but there was a "Continue without correcting" (or something similar) at the bottom of the window, which we did. We talked about this but I am thinking it is more for W2's. If you're paying employees in another state, you most likely have a state withholding ID but not for non-employee compensation. (Of course, I'm no tax expert.)

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    Therese Logeais, Technology Integrators
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  • 6.  RE: One or more of the states require a state account number

    Posted 02-01-2022 09:21
    @Therese Logeais - I'm not sure what version the error applies to. I think my customer who called me was on 2020. Sage was pretty specific about the exact states that triggered the warning which is what make me wonder.

    I'm pretty sure all my customers ignore it.
    Nobody wants to open a new tax filing ID in another state if they can help it ( and aren't legally required ).​

    ------------------------------
    Wayne Schulz
    Schulz Consulting
    860-516-8990
    ------------------------------

    Original Message


  • 7.  RE: One or more of the states require a state account number

    Posted 02-01-2022 10:30
    We have no clients that withhold. We enter whatever random number it takes to advance to the screen where we uncheck the state filing boxes.

    ---------------------------------
    Bob Pfahnl
    Manager - Silicon Valley
    DSD Business Systems
    San Diego CA
    408-641-0922
    ---------------------------------





  • 8.  RE: One or more of the states require a state account number

    Posted 02-01-2022 19:28
    Interesting, but if you have more than one vendor with the same Federal ID number, you will get a warning. I believe it was Aatrix's support (not Sage's) that said to just enter another number (account number, vendor number, etc.) for the additional vendors ID number. Um, how does that solve anything? My customer combined the three vendors amounts into one - the parent vendor - and zeroed out the others. 

    Gotta love January!!

    ------------------------------
    Therese Logeais, Technology Integrators
    ------------------------------

    Original Message


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