'State Tax ID Number cannot be blank' when processing 1099 forms with a blank State Tax ID

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You might be running into an error 'State Tax ID Number cannot be blank' when processing 1099 forms with a blank State Tax ID. This issue is addressed with Sage 500 January 2018 product update that has been scheduled for 1/31/2018 but here is the workaround if you need to resolve this before 1/31/2018:

When you launch AP/1099 Forms (2016+) task under Company tab you will need to enter any number for State Tax ID Number (for example 00-0000000).

After all required information is entered proceed by clicking on green arrow and Aatrix's 1099 Setup Wizard will come up.

Follow the wizard until you come up to the 'State & Local Tax Items' form.

For each state that you wish to leave Tax Account Number blank highlight the state line, click on Edit button, and delete (or edit if needed) Tax Account Number field and click on OK button.

Click on Next and the message 'Missing account number for State Withholding. Certain states may require an account number.' will come up.

Click on 'Ignore' button and proceed with Next.

At the end print your 1099 forms and notice that box 17 shows a blank Payer's state no.