This has definitely been frustrating.  I knew not to submit them improperly formatted.  I have always used Quickbooks desktop until this year when we were forced to use the online version.  Interestingly, I inputted data into my desktop version and successfully printed them!!  I hope they get this resolved soon.

Sorry to all who submitted and had them rejected by the IRS. 

We've used tax1099*dot*com for our desktop clients and some of our QBO clients that had this SSN formatting issue. tax1099*dot*com is the old program QB Desktop would direct you to when wanting to e-file from desktop. The prices are similar to QBO for 1099 efile and in addition, this program actually does the state filings for you for free as well. 

I actually used tax1099.com with desktop with my client.  It is the what comes up on their screen when you want to efile.  It was a crappy program. Hard to understand how to use.  It actually downloaded two MISC vendors with the NEC vendors.  We used the instructions exactly as they said.  Another time in another company it said it downloaded and nothing showed up.  No message, nothing.  Then we thought it did not work so we downloaded again and then it finally showed up with duplicate names.  We had to go thru the 72 names and manually delete the duplicates.  We finally made it through the program and the cost was enormous!  I am going to work with my clients to set up their own IRIS account for the future.  Qbooks and Intuit can't be trusted to provide and the vendor they suggest was not a good choice. 

Thank you for sharing this with us, @lgrbook. I can see your frustration about the SSN format under 1099 in QuickBooks Online Payroll. I'm here to help share how to contact our support team.

I urge you to call our support team so they can further assist you on how to fix this issue or ask for an alternative way to enter the SSN format within QuickBooks Online Payroll. 

1. Go to Help (?), then click Contact Us.
2. Please enter your question and select Let's Talk.
3. Review and Select from the following: Have us call you or Chat with us.

In the event of resubmitting your 1099-NEC or 1099-MISC forms due to rejection, refer to this article as your compass on how to resolve them: Fix rejected 1099 forms.

Let me know if you have more concerns about your employees' SSNs or filing 1099s. I'm here to help you in any way I can. Keep safe always.

@GIN765 

Two separate times I was on the phone for hours and I really thought they almost got it. Like kind of said something mildly intelligent. But then all of a sudden their brains quit working and they asked "what is the problem" Just use an EIN, because that's what is supposed to go there. I have never dealt with any people this dumb in my life. Much less representatives of a major tax software firm. 

Quickbooks is wrong. The program has a bug:

"Single member LLC's use their SSN for the 1099-NEC's, not an EIN" - we don't have employees. This is for contractors, in my case. The program automatically configures the SSN I correctly entered in the XXX-XX-XXXX format to the XX-XXXXXXX format and the IRS rejected the forms.

I'm just going to void all forms and submit using a different software. Then, I'm going to dispute the charge and get a refund. And I will see what penalties I get from the IRS because my forms were rejected. If someone starts a class action lawsuit on this, please let me know - this is very bad and the company is not reacting appropriately.

This is a glitch in the software. No matter where I update the EIN/SSN, it pulls the wrong format. I've updated under company account and settings and in the 1099 screen. This is so frustrating. Now I have to find another way to file the 1099. I'm a CPA and done 1099s for years and I've never had so much trouble.

Hello, @sestradacpa.

In the 1099 wizard within QuickBooks Online (QBO), you can use the Employer Identification Number (EIN) as the tax identification number format for your business. It's important to ensure that the EIN is accurately entered to facilitate proper tax reporting. Additionally, QBO is designed to accept and process this format effectively, so rest assured that your 1099 forms will align with IRS requirements when the EIN is used as your tax identifier. Remember to verify your company name, email, address, and EIN before preparing your 1099s to confirm that all information corresponds with the details on file with the IRS.

You may consider reaching out the Customer support to guide you in filing 1099s so that it will not be rejected.

To ensure that your 1099 forms are filed correctly and not rejected, it's recommended to reach out to QuickBooks Online Customer Support for guidance. They can assist you in troubleshooting any issues you may encounter while filing your 1099 forms. 

Additionally, consider scanning this material for guidance on handling declined 1099 forms: Fix rejected 1099 forms.

 If you have further questions about your 1099s, you can comment below, and we'll respond to you as soon as possible.

IS NO ONE ON THAT END ABLE TO GRASP THIS ISSUE? When someone has a business, they are NOT required to use an EIN number. They can use their SSN to identify their business, particularly if they are a SOLE PROPRIETOR. QuickBooks is REJECTING SSN for business contractors! It will only accept an EIN for business contractors where, in reality, it should accept either an EIN OR SSN! PLEASE CORRECT THE ERROR ON YOUR END! As you can see from the thread, hours have been spent online among numerous clients of yours and NO ONE IS FIXING THE ISSUE. And yes, I am SCREAMING. This is so frustrating. 

The QB responses in this thread are so utterly tone-deaf and help-free that AI is the only way to explain them. I've read this whole thread with growing amazement. I am not personally in this situation (thank goodness) and feel terrible for all who are.

But I have a question, maybe it's a dumb one. I just became a single-member LLC and one of the first things I did was secure an EIN because I thought I would need it. But it turns out I don't, as my accountant says I will be filing taxes on a Schedule C under my own SSN. So why not just get an EIN and use that to issue your 1099s?

Because the IRS expressly tells you NOT to do that.

Here you go:

"For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or employer identification number (EIN) for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN."

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...

(When it says "the owner's EIN, it is talking about a single-member LLC owned by another company. If it is a person, the term "owner's social security number" is the applicable one)

@rmoctezuma 

My most recent call with QBO customer service, they stated that the IRS changed the rules and that the IRS prefers that everyone have their TIN either not formatted at all or formatted like an EIN even if you have always had it registered as a SSN. They put this in writing, but could not share any links with me about these supposed tax code changes. They said to just send it as is, as this is the correct way. 

@Kenny R 

You can't send it in "as is" - I tried doing this via QBO and the forms were rejected by the IRS, so it is physically impossible to do via QBO. I ended using Track1099.com.

I notice that the SSN format has not been resolved on 1099 forms on quickbooks online.

Are they planning on fixing that??

They told me that the IRS regulations have changed and that the IRS actually prefers it this way now. But they couldn't cite where they got that information from. 

How do I fix this

Hello there, @Shyeida123.

Can you tell us more about your query? Are you trying to modify your company's EIN? If so, we'll gladly write down the steps to get you going:

1. Access your QuickBooks Online company.
2. On the top-right corner, Gear icon and select Account and Settings.
3. Select Company, then Edit icon in the Company name section.
4. From the EIN section, select and enter the EIN. If you can’t edit the Company name, Legal name, or EIN, or you see Error -7000, edit your company info in your payments and payroll accounts first.
5. Click Save and Done.

For more details, you can visit this page: Change your business name, contact info, or EIN in QuickBooks Online.

In case you can't get through this or encounter an error when performing the steps provided. We recommend contacting our Customer Care Team so they can check on your end and determine the root cause of the problem. Refer to this article for more information: QuickBooks Online Support.

We also encourage checking these articles to help you in preparing and filing your taxes:

• File your sales tax return and record tax payment in QuickBooks Online.
• Create and file 1099s using QuickBooks Online.

We're always here to help you out if you have any follow-up questions about EIN or SSN inside QuickBooks. Keep safe.

We all see that you still aren't listening... This is sad and extremely unprofessional. 

I couldn’t agree with you more!  So frustrating!  I’ve used my ssn for 35 years on my 1099’s. They expect me to change now!

Welcome to the Community, @Romedogbaby.
 

Thanks for sharing the photo. However, to ensure that I'll be providing the correct resolution, could you please tell me more about the photo? Any additional information would help.

Looking forward to hearing from you. Have a good one.