1099 Readiness Checklist for Business Central 2025–2026 (Version 27)

If you already use Microsoft Dynamics 365 Business Central, the new 1099 process in version 27 can feel confusing at first, especially at year end. However, when you follow a clear checklist, you stay in control of your data, and you file your 1099 forms on time with less stress.

Why 1099 Readiness in Business Central Version 27 Matters

Business Central version 27 changed how 1099 information is stored, tracked, and sent to the IRS, and that change affects every AP and finance team that files 1099-NEC or 1099-MISC. The system now uses an IRS Forms app, IRS reporting periods, and integration with the IRS IRIS system for electronic filing instead of only preprinted forms and manual uploads.

Because the IRS now pushes more companies to file information returns electronically, businesses that send 10 or more 1099 forms must plan and get their Business Central setup right. When you prepare early, you avoid last-minute vendor cleaning up, missing TINs, and rejected files, and you also reduce manual work at year end.

Step 1 – Verify Your Business Central Version for 1099 Readiness

Before you follow any 1099 checklist steps, you should confirm that your Business Central environment runs at least version 27 and that the new 1099 experience is available. If you still run an older version, your screens and options will look different, and you will not see the same IRS reporting and IRIS features.

In your Business Central admin or help area, review the version number and confirm that your production company has the current 2025 release wave updates. If you are not sure, you can first try these steps in a sandbox, because that gives you a safe place to test 1099 changes before you touch live data.​

Step 2 – Set Up IRS Reporting Periods in Business Central 1099

The IRS reporting period is the anchor for each year’s 1099 data in Business Central, so you need to set it up for every new year. For 2025 and 2026, you should open the IRS Reporting Period page and confirm that you have a period that covers January 1 through December 31 for the tax year you plan to file.

You also need to link the correct 1099 forms, such as 1099-NEC and 1099-MISC, to that reporting period so the system knows how to group vendor payments for that year. When you create a new reporting period at the start of each year, you keep your 1099 totals organized and avoid mixing old and new data in the same period.

Step 3 – Configure 1099 Form Boxes for Business Central Version 27

Next, you should review your 1099 form boxes in Business Central and confirm that they match current IRS rules for the forms you use. On the 1099 Form Box page, Business Central comes with common codes already set up, but you can add or adjust boxes and minimum amounts when IRS thresholds change.

If you use actions that update form boxes, you should plan that work carefully, so you do not break prior year reporting or change box meaning for posted entries. Good practice is to finalize all old year 1099 reports first and then update form boxes for the new year, so you keep a clean history.

Step 4 – Validate Vendor Setup for 1099 Readiness in Business Central

Your 1099 results are only as good as your vendor setup, so this step deserves extra time and attention. You should open vendor cards and confirm that each 1099 vendor is marked as 1099 liable, has the right 1099 form (such as NEC for contractors), and has the right 1099 box assigned.

You also need to check vendor tax IDs and contact information, because missing or incorrect TINs will cause problems when you send files to the IRS or send forms to vendors. Since Business Central version 27 supports emailing substitute 1099 forms, you should confirm that vendor email addresses are correct and that you have consent for electronic delivery.

Step 5 – Obtain Vendor Email Consent for 1099 in Business Central

Because Business Central can email 1099 copies directly to vendors, you have a chance to reduce printing and mailing, but you need vendor approval first. Many companies send a simple email or form asking vendors to confirm the address for 1099 delivery and to agree to receive forms electronically.

This step is often taken the longest because you wait for responses, so it makes sense to start it earlier in the year and then store the consent details and email addresses on the vendor card. When you do this well, you speed up year end, cut postage costs, and keep a clear record that shows who approved electronic 1099 delivery.

Step 6 – Review 1099 Vendor Amounts and Adjustments in Business Central

After you finish vendor setup, you should review 1099 amounts before you send any forms. In Business Central version 27, you can run reports or use pages that show 1099 totals by vendor and by form box so you can spot missing or strange values early.​

If you see issues, such as payments that should be 1099-NEC but do not appear, you may need to adjust entries or use the new adjustment options in version 27 to correct totals. It is easier to fix these problems before you create forms or send files to IRIS, and it also reduces the need to issue corrected 1099s later.

Step 7 – Create and Link Your IRS IRIS Account for Electronic 1099 Filing

Because Business Central now supports electronic 1099 filing through the IRS IRIS platform, you should create and link an IRIS account before year end. The IRS IRIS system handles electronic information returns, and Business Central uses that connection to send your 1099 forms without manual file uploads.

You first register your IRIS account with the IRS, then enter the required credentials and settings in Business Central so the systems can talk to each other. When this is ready, you can submit 1099 batches directly from Business Central, and then you can track the status of those submissions from the IRIS Transmission page.

Step 8 – Test 1099 E‑File and Email Workflow in Business Central Version 27

Before you run the full year end process, it helps to test both the e-file and email workflow with sample data or a small batch. You can create test 1099 documents, review how statuses change, and check how the email templates look when vendors receive their forms.​

If your test submission to IRIS shows errors or rejects, you can fix the settings or data issues now instead of in the last week of January. This test run also gives your AP team practice with the new screens and steps, so they feel more confident when the real deadline arrives.

Step 9 – Run Your Final 1099 Process in Business Central

Once you feel ready, you can run your final 1099 process for the year in Business Central. You will review one last set of reports, generate the official 1099 entries for the reporting period, send the vendor copies by email or print, and submit the electronic file to the IRS through IRIS.​

As you move through the process, you should watch the filing status in Business Central to confirm that the IRS accepts your submissions and that there are no outstanding rejects or errors. When you close the period, you will have a clear record of what you filed, when you filed it, and which vendors received their forms.

How Navisiontech Can Help You with 1099 Readiness in Business Central

Navisiontech works with Microsoft Dynamics 365 Business Central customers every day, including users who struggle with 1099 setup, vendor data, and year end processes. Because we focus on Business Central and related tax and fee solutions, we understand the new 1099 structure in version 27 and the real-world issues that finance teams face.​

Our team can review your IRS reporting period setup, vendor configuration, and IRS connection, and we can also help you design a simple 1099 readiness checklist that fits your business. If you want extra support, we can guide you through a live test run before year end, so your team feels prepared and your 1099 filing runs smoothly on time.

Next Steps for Your Business Central 1099 Readiness Checklist

You can start today by confirming your Business Central version, checking your IRS reporting period, and reviewing your top 1099 vendors. After that, you can reach out to Navisiontech to schedule a short review session, where we walk through your current setup and suggest quick wins before deadlines hit.