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Experienced Member

Most of my 1099 Vendors Changed to Not Eligible

I was just starting the process of issuing 1099s by reviewing my information.  When I ran a summary report, I noticed that I only had a few vendors listed even though I know there are more that should show up.  Upon further investigation, I noticed that most of my vendors had reverted to "not eligible" (ie when I run a "review 1099 vendors" report, the field for "eligible" is marked "no").  If I manually go and check the box in the vendor record, they appear in my report.

 

I'm wondering why this happened.  When I set up a vendor, I am careful to check the box if needed.  Everything was fine last year, so this change happened at some point during the year.  I have not changed the version of Quickbooks I am using (Desktop Pro 2017).

 

Any ideas?  I can manually go through and update every vendor, but I'm wondering why this happened in the first place.

 

steve

Solved
Best answer 01-09-2019

Accepted Solutions
Established Community Backer ***

Re: Most of my 1099 Vendors Changed to Not Eligible

Yes, every year some program update whacks the 1099 settings and the Thresholds, too. Make sure to use the link in the wizard to Set the Thresholds to the IRS defaults, and yes, reviewing the names is what you needed to do. To Easily update, go to Lists menu > Add/Edit Multiple, Vendors, Customize the columns, bring what you need into your view (1099 Y/N and SSN/EIN field) and scan and update. This is another reason it helps to use Vendor Type; you can use Type = Subcontractor, for the 1099-Reportable names, and that doesn't seem to get affected. Then, in that Add/Edit Multiple, you can show only the Vendor Type that matters for this task, and you also can use Reports menu > List Reports, Vendor Phone List. Customize it to display the info you want, retitle it Vendor Year End Info and Memorize it to have it always available.

7 Comments
QuickBooks Team

Re: Most of my 1099 Vendors Changed to Not Eligible

Thanks for bringing this matter to my attention, StFarris.

 

Great work on the troubleshooting and fixing the status of your vendors. I'm here to provide clarification on why this happened.

 

First, did you go through the 1099 Wizard before running the Review 1099 vendors report? After some research and testing, I found out that there's an option in the Wizard, in the Select your 1099 vendors page, that can change someone to Not Eligible.

 

 

Asides from this, I haven't received any reports similar to this issue. However, I'll be sure to report this to our engineers, so we can monitor it on our end and ensure that it won't turn into a problem that you'll have to worry about in the future.

 

Keep in touch with me here if there's anything else you need. I always got your back. Thanks again for reaching out, wishing you and your business the best.

Established Community Backer ***

Re: Most of my 1099 Vendors Changed to Not Eligible

Yes, every year some program update whacks the 1099 settings and the Thresholds, too. Make sure to use the link in the wizard to Set the Thresholds to the IRS defaults, and yes, reviewing the names is what you needed to do. To Easily update, go to Lists menu > Add/Edit Multiple, Vendors, Customize the columns, bring what you need into your view (1099 Y/N and SSN/EIN field) and scan and update. This is another reason it helps to use Vendor Type; you can use Type = Subcontractor, for the 1099-Reportable names, and that doesn't seem to get affected. Then, in that Add/Edit Multiple, you can show only the Vendor Type that matters for this task, and you also can use Reports menu > List Reports, Vendor Phone List. Customize it to display the info you want, retitle it Vendor Year End Info and Memorize it to have it always available.

Experienced Member

Re: Most of my 1099 Vendors Changed to Not Eligible

I did not run the wizard before I discovered this issue.  I discovered it by running a 1099 summary report and noticing that several vendors were missing.  I always look at the reports first before starting the wizard.

 

It would appear that at some point during the year, all my vendors were reset to "not eligible".  Any vendor I added since then has the flag set correctly.  I was able to fairly quickly go through and fix the flag using the 1099 review report since the vendors needing 1099s are the only ones with TINs.

 

Thanks for the tip about vendor types, that should help in the future.  However, this certainly seems like a bug.  It has never happened to me before.  While it only took about 15 minutes to fix it once I figured out the problem, it shouldn't have happened in the first place.

Experienced Member

Re: Most of my 1099 Vendors Changed to Not Eligible

I have been using QuickBooks for 20 years+ and have NEVER had this problem until this year. Yes, I use the wizard every year to create the file to import for my 1099 processing company. I certainly wouldn't have clicked something intentionally that would change the status for everyone. This is a very big deal for me. I have tens of thousands of vendors that I will have to go back through and re-check. I have also already sent and reported my 1099's to the IRS and I already know that I missing at least 100's of 1099's not sent or reported because of this. MAJOR problem that is going to cost me days of work to try to fix and likely fines from the IRS because of a terrible change you may have made in the "wizard" (which is terrible by the way).

QuickBooks Team

Re: Most of my 1099 Vendors Changed to Not Eligible

Hi, @joystickj.

 

We appreciate the feedback. I want you to know that your voice matters and that updates and changes to QuickBooks are largely the results of feedback provided by users like you. 

 

That being said, I’m making it my top priority that this reaches our engineers. After all, enhancements and improvements should make your experience working with QuickBooks better. 

 

You can also directly share your product suggestions by following the steps below:
1.    Go to the Help menu and select Send Feedback Online.
2.    Select Product Suggestion.
3.    On the QuickBooks Feedback window, fill out onscreen instructions.
4.    Click Send Feedback

 

Rest assured, I’ll do the same on my end to reinforce your request.

 

If you need assistance in printing and sending corrected 1099-MISC forms, here’s an article for your reference: Print 1099-Misc forms in QuickBooks Desktop.

 

That should do it. Please touch base with me here if you need anything else, I’ll be more than happy to help. Thanks for dropping by and take care!
 

Experienced Member

Re: Most of my 1099 Vendors Changed to Not Eligible

Is there a way for the software to easily check the box as eligible for every vendor where I have a tax ID number? This is taking forever going through these even in List view. Also I got about 1/5th of the way through them adding the check mark and QB froze and turned off. Didn't save all of the ones I had already checked again...

Moderator

Re: Most of my 1099 Vendors Changed to Not Eligible

Hi, @joystickj.

 

Let me help share some insights about checking vendors to eligible.

 

Instead of checking the box as eligible in QuickBooks, you can go through the wizard. Let me direct you to this link for more details: QuickBooks 1099 Wizard.

 

From there you can select the vendors that need a Form 1099-MISC. Changing the selections also changes the vendors' 1099 status in your company file.

 

I can also include this article to resolve the issue about why your QuickBooks program is frozen: Solutions for when QuickBooks stops working.

 

As always, please feel free to contact our Desktop Payroll Support whenever you need assistance in going through the steps. 

 

That should do it. Keep me updated if you have other questions about your 1099 vendors. I'll be here anytime you need help.