How To Prepare Microsoft Business Central for the New 1099 Structure

Emily Kirk Emily Kirk

Business Central changed the structure of 1099s starting in version 26, and these updates impact how you file electronically with the IRS. If you’re processing 1099s for 2025, or planning ahead for 2026, you need to act now with these 6 steps to get you ready. By following this checklist, you’ll streamline vendor setup, ensure accurate reporting, and stay ahead of IRS requirements.

6 Ways to Get Business Central Ready for the new 1099 Structure

If you have not prepared for the changes, there are processes to automate the data conversion. These will allow you to prepare for 2025 electronic filing with the IRS. While some companies are choose to stick with the old way for now and just prepare for Jan 1, we recommend getting ahead while you can. 

Either way, these readiness tips are for those wanting to process 1099’s for 2025 but can also be used in preparation for 2026:

1. Check Your Version

Run version 27.0 or later. Older versions may need partner help for data conversion. 

2. Set IRS Reporting Period

Confirm the IRS Reporting Period is set to 2025. This drives all 1099 data. 

3. Validate Vendor Setup

Every vendor should have:

  • 1099 Form assigned
  • Correct Form Box selected. Check on Vendor Card or Vendor Setup. 

4. Get Vendor Email Consent 

If sending 1099s electronically:

  • Get vendor approval
  • Confirm email addresses
  • TIP: Use a standard form. This step takes the longest! 

5. Create IRS IRIS Account

Required for uploading 1099s in January. Business Central guides you through the setup. If you have questions on how, we can help. 

6. Prepare for 2026

After the 2025 setup:

  • Create IRS Reporting Period for 2026
  • Preview draft 1099s to catch errors early

Here's the Bottom Line: Do these now to avoid last-minute headaches and stay IRS-compliant. 

Still Need Help Getting Set Up for 1099s?

Don’t let 1099 changes catch you off guard. With Business Central’s updated structure, preparation is key to avoiding compliance issues and last-minute stress. 

Need expert help? Contact us today for a quick 1099 readiness audit and make your year-end filing hassle-free.

If you have any other needs on your IT team, check out our Managed Services plans as well. We'll take the IT burden off your plate for good. 
Originally published on December 17, 2025

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About the Author

Emily Kirk Emily Kirk

Creative content writer and producer for Centre Technologies. I joined Centre after 5 years in Education where I fostered my great love for making learning easier for everyone. While my background may not be in IT, I am driven to engage with others and build lasting relationships on multiple fronts. My greatest passions are helping and showing others that with commitment and a little spark, you can understand foundational concepts and grasp complex ideas no matter their application (because I get to do it every day!). I am a lifelong learner with a genuine zeal to educate, inspire, and motivate all I engage with. I value transparency and community so lean in with me—it’s a good day to start learning something new! Learn more about Emily Kirk »

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