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Does 1099-MISC form input alignment (left side) matter to the IRS?

1099 Form ErrorsWe are a NetSuite user and are attempting to use their 1099-MISC reporting feature. When printing the 1099-MISC forms (obtained directly from the IRS) we're having problems getting the the left side to fully line up. In some instances, the city, state, zip information is printed on top of the red box label. Adjusting the margin setting, to fix the issue, would misalign the right side (the boxes with the dollar amounts). My thinking is that the IRS's optical readers do not pickup the pre-printed red text and therefore minor alignment issues on the left side do NOT matter. Can anyone confirm whether minor alignment issues (on the left side) with 1099-MISC forms matter to the IRS?

As a side comment, it would be nice if NetSuite made their software compatible with IRS forms. I'm not certain if they sell their own forms. NetSuite supports says the problem is with our printer. However, their reply doesn't make sense as the right side of the form lines up perfectly. I wonder if other NetSuite users have experienced this same issue.

 

Answers

Topic Expert
Bob Stenz
Title: Controller
Company: Silicon Valley start-up
(Controller, Silicon Valley start-up) |

Thanks Nancy. We started with forms from Staples and they had the same problem. In our review of the issue, we printed a form from the IRS's website and saw that it was a little different than those from Staples. We then went to the IRS to get the pre-printed (red ink) forms since you cannot use the IRS 1099 forms from their website. We found the IRS forms from their office in San Jose to be the same as those from Staples, except for the tear off margin. The paper size is not the issue as we're fine with the margins (NetSuite allows for margin adjustments).

Next time, we'll use software with compatible forms -or- we will efile. The only reason we decided not to efile is that there appears to be some CA rule that says you do not need to file 1099s to the state if you paper file. I know this doesn't make sense, but that rule was cited to me on Proformative and appeared legitimate.

(Agent, JKS Solutions, Inc.) |

Alignment inside the boxes must be legible within the bounds of the space provided. If you are submitting paper copies to the IRS, then they send them through Optical Readers to scan the text into their system.

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