Microsoft has recently released the AX 1099 hot fix as well as the 2016-R01 payroll tax updates for AX. See this post for the necessary links to update your system.
1099 Hot Fix Now Available for AX
For a look at updates made to this year’s 1099 form, click here.
Links to the 1099 hot fixes are below for each supported version of Dynamics AX. You must sign in to your Microsoft account in order to access the hot fixes available on Lifecycle Services.
For information on setting up 1099 Software Vendor information in AX, read this post.
AX Payroll Tax Updates
Microsoft has also released 2016-R01 payroll tax updates. The updates can be downloaded from Microsoft CustomerSource: