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Level 1

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

Best Answers
Level 15

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.

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13 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.

Level 15

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.

View solution in original post

Level 1

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.

Level 1

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!
 

Level 1

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...

Anonymous
Not applicable

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.

 

Level 1

Re: Most of my 1099 Vendors Changed to Not Eligible

I am experiencing a similar problem, except that everybody who has ever received a payment from us IS checked (hundreds).  I followed the suggestion to use the Wizard to uncheck everyone who should not receive a 1099, but before wasting hours, I went through, unchecked about 50 names, clicked "Save & Close" and then went back into the Wizard.

 

To my surprise (not), every name was checked again.  There is no way I will be able to go through all of the names in one sitting - there are too many of them.  I can't use any other area of QB with this open.  

 

I suspect that this change to my vendors' 1099 statuses happened when we updated to QuickBooks Premier Nonprofit Edition 2019 this summer.  Is there any other way this can be undone and reverted back to our original settings?

 

Thanks.

Moderator

Re: Most of my 1099 Vendors Changed to Not Eligible

Thanks for joining in on the thread and doing a test run on your company file, Fevief.

 

This kind of behavior might be caused by data or product component damages. We'll do a few troubleshooting steps to get this working.

Before that, it'd be best to update your QuickBooks to the latest release and back up your company file.

 

We can do the Verify and Rebuild process to get rid of any data-integrity issues on your company file. You can follow the detailed steps in this article: Verify and Rebuild Data in QuickBooks Desktop.

 

If the same thing happens, it'd be best to speak with our Technical Support Team. They'll pull up your account and provide additional troubleshooting steps to fix it. 

  1. Click Help at the top menu and select QuickBooks Desktop Help.
  2. Select Contact Us. It'll route you to our support page where you can select a topic for your concern.
  3. After selecting a topic, go to the second section.
  4. Select how you want to reach them and enter the necessary details.

Another way to reach them is to go directly to the support page outside QuickBooks:

  1. Go to this link: https://help.quickbooks.intuit.com/en_US/contact.
  2. Select QuickBooks Desktop and click the Continue as a guest button.
  3. Select the QuickBooks Desktop version.
  4. Go to the first section and select a topic. You can also enter the details of your concern manually.
  5. Go to second section and select the available support option (phone, chat, or email).

We'll be right here if you need more assistance with this.

Level 1

Re: Most of my 1099 Vendors Changed to Not Eligible

Thank you for responding so quickly.  It looks like I will have to contact Technical Support - the rebuild fixed some issues, just not my vendor issue.

Level 3

Re: Most of my 1099 Vendors Changed to Not Eligible

I've just discovered this has happened to me in multiple companies that I have on QuickBooks.  It got rid of all my 1099 eligible vendors except ONE.  The same one in all companies.

 

Fortunately I don't have but a few that I send out, but this has cost me extra work that I didn't really need at this time of year!

 

I have never had this happen before and it sounds like a glitch they need to fix!

Moderator

Re: Most of my 1099 Vendors Changed to Not Eligible

Hi there, Mary_W.

 

Let me share additional clarification when a vendor's status changes. Aside from manually changing it in the vendor's profile, you can also update it when you go to the 1099 Wizard. Choices made in the Select your 1099 vendors page, can remove or add the checkmark in the Vendor eligible for 1099 box.

 

However, if you did not go through the 1099 Wizard, I recommend the troubleshooting steps provided by JamesDuanT to fix this unexpected behavior. If you get the same results, please contact our Technical Support to help you investigate what's causing this issue and avoid this from happening again.  

 

I've also attached a link about how to prepare and file 1099s in QuickBooks Desktop, as well as how to print or e-file the forms: Submit 1099s.

 

Let me know if you have any other questions. Have a great one.

Re: Most of my 1099 Vendors Changed to Not Eligible

We have a file with a very large vendor list. Going through the Wizard as above which included inactive vendors proved to be difficult and I was afraid we would missing one. There is no way to filter or sort the Wizard list. (Intuit could improve this)

We found it easier to run the 1099 report as it is currently with the missing the vendors, run a second 1099 report for comparison, filler out non zero amounts and find any vendor who has a tax id under the name. We used this new list to correct the vendors.  We went to vendor center, edit the vendor, go to tax setting and click the box.  

 

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