1099 Reporting for Returned Check from Previous Tax Year
We have encountered an issue for Tax Year 2024 that we have not encountered in the past. We had several vendors issued checks for payment in 2023. The 2023 1099s were sent with that payment. In 2024, the checks were returned and a new one issued. Because the payment was already processed in the 2023 Tax Year, the re-issue in 2024 is causing a problem with our reports.
- The returned check from 2023 is processed through automatic bank reconciliation which balances for that check.
- On the WTHD_TRXN_TBL record, the transaction is shown as a negative (-$4,354.89) for the 2024 Tax Year.
Because this transaction is a negative on the withhold transaction table, it has caused us not to issue a 1099 to the Supplier. Their payments for 2024 were ~$3800. With the -$4,354, the combined total was -$554 which causes them not to receive a 1099.
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