Just as the title reads, we received notice that our 1099 NECs filed on January 4th were REJECTED by the IRS yesterday.
It is important to note that I had to actually call the IRS to figure out why my 4 1099-NECs had been rejected.
Comparing with the 2022 year which had no issues and were IDENTICAL to the 2023 which were rejected, it seems IRS accepted 2022 when I filed them last year without issue, YET previous to 2022 I noticed that BOTH our legal S-corp business name AND our DBA would appear on the 1099s. I had not even noticed that for the 2022 year, Intuit ONLY printed our DBA and although they were accepted by the IRS last year, this is the actual reason why our 2023 1099s were REJECTED now - only shows our DBA and not the business's legal name.
I went into the General QBO settings and discovered that "somehow" our legal business name mysteriously disappeared! Whether it was a system update glitch that occurred well over a year ago I can only speculate.
I entered our legal S-Corp name and still shows the DBA name for other items like invoices, etc.
When I created the new 1099s with Quickbooks Online this morning, it now ONLY showed our legal business name and the DBA does NOT show on the line underneath as in all years previous we've been doing this since 2010!
This prompted me to have to call QBO support and they were really no help in understanding why QBO removed our legal name in the first place, and why now QBO will only populate the 1099s with the legal name and not include on the line underneath the DBA name as has been done in all years previous - EXCEPT for 2022 which somehow the IRS accepted (our 1099s with no legal name and just DBA).
On the new ones I prepared this morning, which were e-filed again and I immediately received an email confirming that the IRS accepted them, the "Corrected" box was NOT checked on any of our 1099s - I was hoping that this means the recipient never received the original ones, HOWEVER I got off the phone with one our our contractors who told me that they DID receive the original 1099 in the mail (the one that got rejected by the IRS). Now they will be receiving the newly filed 1099s and what are the implications that Intuit did NOT check the "Corrected" box on any of them?
