Understanding Suppliers with Duplicate Tax IDs

You might have several suppliers owned by a single company or legal entity that share the same tax ID. You must prepare a 1099 return for the legal entity, not for the individual suppliers. This means that you must sum up all of the amounts that you paid to the suppliers, and report the sum amount on the legal entity's 1099 return.

Note: You must set up supplier information for all records. If you have two suppliers that share the same Tax ID, both must have that tax ID populated, and the person/corp code must also be populated. You cannot leave one of them blank. If you leave them blank, the system will not combine the amount on the legal entity's 1099 return.

For example, Anderson Home Improvements (a supplier) owns Anderson Carpet Cleaning (another supplier). You made payments to both suppliers; however, you must create a 1099 return only for the legal entity, which is Anderson Home Improvements.

To combine amounts for suppliers, enter the supplier number of the legal entity in one of the fields on the Related Address tab of the Address Book Revision form. In the preceding example, you enter the address book number for Anderson Home Improvements in one of the related address fields in the address book record for Anderson Carpet Cleaning. Then when you run the Build 1099 A/P Workfile program (R04514FP) and the Build 1099 G/L Workfile program (R04514), you specify in a processing option the field to use to sum up all of the amounts for one legal entity.

Important: For the system to combine supplier paid vouchers properly, you must use the same related address field consistently on all address book records for suppliers and companies.