THE 1099 PROCESS

1
THE 1099 PROCESS
2
In 2006

• All forms MUST be submitted electronically

3
Verify Previous Year File ID

• Previous Year File ID should be 6, for the 2006
  year so that transactions will accumulate from
  another File ID (example January transactions
  are probably in previous file ID

• During the Create 1099 Work Table Process only
  unique transactions are selected from both file
  IDs.

FILE ID 6
4
1099 Object Codes

• Verify both the CURRENT and PREVIOUS YEAR FILE ID
  has the 1099 Object Codes Table populated

• 1099s will not print without these tables

5
1099 Object Codes

• You can ADD or DELETE a code (line) by
  RIGHT-CLICKING and selecting ADD or DELETE

• If an object code is deleted
• The transactions will not be included on the
  1099-MISC Form or the 1099 file
• Are still displayed on the 1099 Report and in the
  1099 Report Maintenance Window

6
Create 1099 Worktable

• Leave the Date Range 00-00-0000 and click
  DELETE

Enter current year date range and click ADD
Will get message confirming the deletion of 1099
records or the additions.
7
1099 Report

• Print 1099 Report to verify vendors and amounts

• Transactions displayed on the 1099 Report that
  are not to be included on the 1099 MISC Form,
  will not have a description displayed on the
  Payment Type

8
1099 MISC Form

• Not printed for vendors whose transactions total
  less than 600

• Print copy for your permanent records

9
1099 Record Maintenance

• Right click to ADD any missing transactions

• Right click to DELETE any transactions which do
  not need a 1099

10
Vendor not Displaying?

• Verify that the vendor must have a EIN or SSN
  entered

• Verify that the 1099 Eligibility flag has been
  selected

11
Verify

• Reprint and Verify maintenance changes

• 1099 Report

• 1099 MISC Form

• 1099 File Report

12
Print 1099 MISC Forms

• Print 1099 MISC Form

• Will Print 2 Vendors per page

13
Filing 1099s Electronically

• Save Report as IRSTAX_MMDDYYYY

• Rename the file IRSTAX prior to transmitting to
  the Internal Revenue Service (IRS/MCC)

• Web site for filing 1099-MISC electronically
  http//fire.irs.gov

14
FORM 4419

• New users are required to submit FORM
  4419-Application for Filing Information Returns
  Electronically/Magnetically to request
  authorization to file Information Returns with
  the Enterprise Computing Center

• Upon approval a five character alpha/numeric
  Transmitter Control Code will be assigned