Dynamics AX – 1099 Tax Updates for 2015

Once again, tax season is right around the corner. As such, I thought I would take a moment to let everyone know that we have released the 2015 1099 updates for Dynamics AX and share some of the changes we have made.

Supported versions:

Version: AX 5.0
Hotfix: KB311849
Location: http://hotfixv4.microsoft.com/Microsoft%20Dynamics%20AX%202009/sp1/KB3118498/5.0.1600.3540/free/488628_intl_i386_zip.exe

Version: AX 6.0/6.1 – Due to kernel changes, you will need to have at least 6.0 CU1 to take this hotfix
Hotfix: KB3120240
Location: http://hotfixv4.microsoft.com/Microsoft%20Dynamics%20AX%202012/nosp/KB3120240/6.0.1108.8478/free/488821_intl_i386_zip.exe

Version: AX 6.2
Hotfix: KB3119913
Location: http://hotfixv4.microsoft.com/Microsoft%20Dynamics%20AX%202012%20R2/nosp/KB3119913/6.2.3000.556/free/488608_intl_i386_zip.exe

Version: AX 6.3
Hotfix: KB3118173
Location: http://hotfixv4.microsoft.com/Microsoft%20Dynamics%20AX%202012%20R3/nosp/KB3118173/6.3.3000.383/free/488611_intl_i386_zip.exe

Foreign Account Tax Compliance Act (FATCA) filing requirement for versions prior to AX7

New FACTA filling requirement checkbox has been added to the Tax 1099 (tab) of the Vendor (form)

AX 2009

AX 2012

1099-INT

    1.      Starting at Box 4 and Box 5, the 2015 boxes have changed in sizing and as a result, alignment has shifted for the subsequent boxes.
2.     Box 12 is now blank and displays as shaded blank box on form
3.     New Box 13 “Bond premium on tax-exempt bond” was added. All later boxes are renumbered.
    4.     2014 Boxes 12, 13, 14 and 15 are now 2015 Boxes 14, 15, 16 and 17
    5.     Box 14 is relabeled “Tax-exempt and tax credit bond CUSIP no.” (I see no indication of this box in AX so I don’t think there is a requirement change here.)
    6.     FATCA filing requirement is a checkbox that has been added to the 1099-INT form.
    7.     Update 1099 fields

8.     Modify code to no longer enter data into INT-12
    9.     Upgrade 1099-INT transactions dated 1/1/2015 and forward for the following
a.
Vendors with 1099 box set to INT-15 will have 1099 box updated to box 17.
b.
Transactions with box INT-15 must have the 1099 box updated to box 17.
10.   Should not need an upgrade for these since the previous 1099 boxes were not stored as 1099 fields
a.
1099 box INT-12 was updated to 1099 box INT-14
        b.
1099 box INT-13 was updated to 1099 box INT-15
c.
1099 box INT-14 was updated to 1099 box INT-16
11.    FATCA filing requirement checkbox has been added to the 1099-INT form

1099-MISC

FATCA filing requirement checkbox has been added to the 1099-MISC form.

When the FATCA filing requirement for a vendor is marked, and the amount is below the minimum threshold, the system will show 0.00 in Box 3.

1099-DIV

FATCA filing requirement checkbox has been added to the 1099-DIV form.

1099-OID

    FATCA filing requirement checkbox has been added to the 1099-OID form.

Publication 1220 changes 

1.     Form 1099-DIV, Dividends and Distributions
a.
Payee “B” Record – Added field position 587, FATCA Filing Requirement Indicator
2.     Form 1099-INT, Interest Income
a.
Payer “A” Record – Added Amount Code “D” – Bond Premium on Tax Exempt Bond
b.
Payee “B” Record – Added field position 600, FATCA Filing Requirement Indicator
3.     Form 1099-MISC, Miscellaneous Income
a.
Payee “B” Record – Added field position 548, FATCA Filing Requirement Indicator
4.     Form 1099-OID, Original Issue Discount
a.
Payee “B” Record – Added field position 586, FATCA Filing Requirement Indicator