1099 Extracts
1099 Extracts Menu | 1099 Extracts Menu Additional Options |
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Displayed below are the menu options if the ITC is submitting 1099 data to the IRS electronically on the entity's behalf | Display below are the menu options if the entity is submitting their 1099 data to the IRS electronically themselves. |
Before generating the IRS Transmitter file for Correction type forms, the IRS Form 1099 Submission Configuration option "ITC Correction" under System>Configuration must be enabled and populated.
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Before generating the IRS Transmitter file for any Submission Type, the IRS Form 1099 Submission Configuration option "District Will Submit 1099 File to IRS" under System>Configuration must be enabled and populated.
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Payment Year: Must be defined so the system pulls the correct vendor YTD taxable amounts. The December posting period needs to be created before the current calendar year is available.
Type of Return: Can include one or both types of 1099 forms with a check mark. TIP: If both options are selected but the files are not generated, please check whether your browser’s pop-up blocker is preventing the files from being opened.
Output File Type:
IRS Format (TAP) is the output file used to generate the TAP file for IRS electronic submission.
XML Format (XML) is the output file used to generate the XML file, often used by Third-Party software to print the 1099s.
Reference Copies - When selected, the dropdown to choose the 1099 Copy will appear when the Payment year is 2020 and up.
1099 Copy - This box will only appear when the Output File Type of Reference Copy is selected & the Payment year is 2020 or beyond.
Copy 1 - For State Tax Department
Copy 2 - Recipient's State Copy - This option includes the ability to truncate the TIN/EIN numbers.
Copy A - Internal Revenue Service Center copy
Copy B - For Recipient - This option includes the ability to truncate the TIN/EINs.
Copy C - For Payer
Printer/Sealer Copies - A printable form that contains both Copy 2 and Copy B that will be provided to 1099 vendors. These are formatted to fit 8 1/2 X 11 Z-Fold forms only. When using this option, if both 1099-MISC and 1099-NEC are selected, the software will produce 2 separate output files for each form type. This option includes the ability to truncate the TIN or EIN numbers.
Truncate EIN/TIN: This option is only available for Copy 2, Copy B, and Printer/Sealer options for Recipient copies. When selected, the first five digits of the TIN (EIN or SSN) will be replaced with asterisks.
Vendor: Can select specific vendors to be included. If no vendors are selected, then all vendors will be included in the file.
Output File Name is pulling the information entered under the CORE/Organization menu.
Exclude vendors without a Tax ID – defaults with a checkmark. Uncheck the box to include vendors without a Tax ID defined.
Organization information - This is pulling from the details under CORE/Organization.
Contact’s Name - The field will populate if the entity has the IRS Form 1099 Submission Configuration enabled to submit their own IRS file.
Contact's Phone - The field will auto-populate based on the data entered in the IRS Form 1099 Submission Configuration. If no phone number is entered, it will autopopulate from the CORE/Organization.
Contact's Email – The field will populate if the entity has the IRS Form 1099 Submission Configuration enabled to submit their own IRS file.
Submission Type - This option allows the selection of the submission or the form type
Original – To be used for the Original Submission.
Type 1 Correction – To be used for any Type 1 Correction submissions.
Type 2 Correction - To be used for any Type 2 Correction submissions.
Test – To be used to test the Submission with the IRS before the first submission. This option only applies when the District is configured to submit 1099s.
File name created: District_1099_Type of Return_T (i.e. Sampelville_1099_MISC_T)
Prior Year Submission? This parameter is displayed only if the entity has the IRS Form 1099 Submission Configuration enabled to submit their own IRS file. A separate transmission is required for each tax year. Check the box if submitting a 1099 file to the IRS for a past year, and the options will change. A report or file will not be processed until the year is selected. Only options available will show.
Approved for the Combined Federal/State Filing Program - This parameter is displayed only if the entity has the IRS Form 1099 Submission Configuration enabled to submit their own IRS file. If showing, the default includes the check mark, but may be unchecked if applicable
The IRS established the Combined Federal/State Filing (CF/SF) Program to simplify the filing of information returns for taxpayers. Through the CF/SF Program, IRS/IRB forwards original and corrected information returns filed electronically to the participating states, free of charge, for approved filers. Anyone with a valid Transmitter Control Code (TCC) can request approval from the IRS for participation in the Combined Federal/State Filing (CF/SF) program. If you don't have a TCC to use with the FIRE system, you can click here for more information on how to apply for one. To request approval to participate, an electronic test file coded for this program must be submitted to the IRS electronically. If the test file is acceptable, IRS/IRB will send you an approval letter. While a test file is only required for the first year a filer applies to participate in the program, IRS/IRB highly recommends that a test file be sent every year a filer participates in the program. For detailed information on the Combined Federal/State Filing program, refer to IRS Publication 1220
Amount Type limit defaults to 600.00, but can be overwritten if needed.
Royalty Type limit defaults to 10 but can be overwritten if needed.
Payer Name Control (PMNC) - Not required. An optional field for the 4-character code that the IRS assigned when the district applied for their TCC (Transmitter Control Code) to submit files to the IRS at the district level.
Click on 'Print 1099 Report' to generate the 1099 report(s) in PDF format. This report will include both active and inactive vendors.
Generates a file named 1099-NEC.PDF if the '1099-NEC' is checked under Type of Return.
Generates a file named 1099-MISC.PDF if the '1099-MISC' is checked under Type of Return.
Click on 'Generate' to generate the selected output file type format.
The 'IRS Format' output file type will generate the TAP file (entity.tap) used to submit to the IRS and will be stored in the Calendar Year Report Archive.
When the District has the IRS Configuration set to “District Will Submit 1099 File to IRS,” the resulting IRS TAP file will start with a T record that identifies the transmitter and will conclude with an F record that marks the end of the transmission.
NOTE: When the entity has the IRS Form 1099 Submission Configuration enabled to submit their own IRS file, it will also generate a 1099.TXT transmitter report and store this in the Calendar Year Report Archives. TIP: If the file is not generated, please check where your browser has pop-up blockers preventing the files from being opened.
The 'XML Format' output file type will generate an .XML file to be used by third-party software to print the 1099s and will be stored in the Calendar Year Report Archive.
The 'PDF Format' output file type will generate PDF files.
1099 Extracts Reports
1099-NEC Extracts Report
1099-MISC Extracts Report
1099 Transmitter Report
Example Printer/Sealer Output
1099-NEC
1099-MISC
Corrections
Prior to Generating Correction forms, review and update the IRS Form 1099 Submission Configuration if needed. This configuration determines whether the District will be submitting or the ITC will be submitting the files to the IRS. The submitter and contact information utilized for the IRS Format can be maintained in the configuration.
IRS Format Note
If the configuration is checked for District Will Submit 1099 File to IRS or if the ITC will submit, then the Transmitter Report and the End of Transmission records will be included in the IRS Format file. This District Will Submit 1099 file can be submitted directly to the IRS and would not require the ITC-M program for the ITC to append the header. If neither configuration option is checked, the file will not contain the Transmitter and End of Transmission Records and can be merged with other files by the ITC via ITC-Management application.
A correction form is specified using the Submission Type drop-down and selecting TYPE 1 CORRECTION or TYPE 2 CORRECTION. As detailed in the IRS General Instructions, there are two different processes for making corrections depending on what type of information needs to be corrected on the original form. Correction forms are to be used for updates to 1099s that happen after the original submission to the IRS.
The steps below are intended to assist with Correction form creation in USAS. Please also refer to the IRS General Instructions and Publication 1220 for official information on filing these correction forms.
Type 1: One-transaction Correction
These corrections only require a single new form to be issued. Generally, this method is used for minor differences that do not involve the Payee (Vendor) information to be updated.
Use if the original transaction was filed with one or more of the following error types:
Incorrect money amount(s), code, or checkbox.
The return should not have been filed.
Correction steps:
Correct the vendor with the appropriate information:
Vendor Adjustments can be used to update amounts.
If the return should not have been filed, use a Vendor Adjustment to bring the taxable amount to zero. (For now, leave the vendor as the same 1099 Type so that it can be picked up in the 1099 extracts. If needed, the vendor can be changed later to Non 1099.)
Generate a new Output File using the Periodic > 1099 Extracts.
Choose the Payment Year for the same year that the original form was issued.
Choose the Type of Return for the same form type that the original form was issued.
Use the Vendor selection box to choose the vendor in question and move to the right side to select just a single vendor.
Choose Submission Type "TYPE 1 CORRECTION"
If the return should not have been filed, change the Amount Type Limits to zero to allow the form to be pulled reflecting zero amounts.
Generate the IRS Format to submit a correction to the IRS.
Generate the Printer/Sealer Format to issue a correction to the vendor.
Generate any additional Reference copies as needed.
When viewing these forms, the CORRECTED checkbox at the top will be checked.
Type 2: Two-transaction Correction
These corrections require two forms to be issued for the correction. The first 1099 form cancels out the information submitted with the incorrect Payee(Vendor) information, and the second 1099 form reissues the form with the correct Payee(Vendor) Information.
Use if the original transaction was filed with one or more of the following error types:
No Payee TIN (SSN, EIN).
Incorrect Payee TIN.
Incorrect Payee Name.
Wrong type of return indicated. (ex. 1099-MISC reported, but it should be on the 1099-NEC form.)
Correction steps:
Prepare the first form to correct/cancel out the original 1099 form.
Do not make changes to the incorrect Vendor information before this step.
All Payee information must be consistent with the Original submission.
Generate a new Output File using the Periodic > 1099 Extracts menu.
Choose the Payment Year for the same year that the original form was issued.
Choose the Type of Return for the same form type that the original form was issued.
Use the Vendor selection box to choose the vendor in question and move to the right side to select just a single vendor.
Choose the Submission Type "TYPE 2 CORRECTION"
Check the box Zero All Amounts (this checkbox will appear below the Submission Type after TYPE 2 CORRECTION is selected)This checkbox allows the form to generate with all $0.00 amounts without needing to modify the amounts on the Vendor. Generating the Correction form with the same Payee information and all zeros will indicate that the amounts should not have been associated with this form type or payee information.
Generate the IRS Format to submit a correction to the IRS.
Generate the Printer/Sealer format to issue to the vendor.
Generate any additional Reference copies needed.
When viewing these forms, the CORRECTED checkbox at the top will be checked.
Prepare the second 1099 form with the correct information.
Correct the vendor with the appropriate information.
Update the incorrect vendor information. Tax ID, Payee Name, or 1099 Type needed on the Vendor record.
Generate a new Output File using the Periodic > 1099 Extracts.
Choose the Payment Year for the same year that the original 1099 form was issued.
Choose the Type of Return.
Use the Vendor selection box to choose the vendor in question and move to the right side to select a single vendor.
Choose Submission Type "TYPE 2 CORRECTION"
Do not check the box for Zero All Amounts on this form.Generate the IRS Format to submit a correction to the IRS.
Generate the Printer/Sealer Format to issue a correction to the vendor.
Generate any additional Reference copies needed.
When viewing these forms, the CORRECTED checkbox at the top will not be checked.
This process for a Two-Transaction Correction will produce two forms to be issued to the Vendor and two files formatted for the IRS submission of the correction.
More Information
Deceased Employee reporting
Please refer to the IRS guidelines for guidance on reporting requirements for the deceased. IF required for an amount to be reported on a 1099, this amount for the deceased employee can be added as a Vendor Adjustment on the Vendor record under Core. This would allow the amount to be reported on a Form 1099-MISC under Other Income.
Posting Period
The December posting period MUST exist to process any 1099 files or reports from the Periodic menu. The December posting period does not have to be open or current, but it does have to exist to see options for the calendar year.
Submission to IRS:
For Payment Year 2020 and forward, the TAP files generated from USAS may be submitted by the District if the District has received the IRS 5-digit Transmitter code or the TAP files can be submitted by the ITC on behalf of their districts by appending the TAP files using the ITC-Management application. The USAS TAP files are limited to 750 positions per the IRS Publication 1220 specifications.
1099 Vendors
If a vendor's 1099 location is specified on the vendor record, it will pull the information from that Vendor Location onto the 1099. If the 1099 location isn't specified on a vendor record, it will default to the PO location.
1099 Amounts
By default, the 1099 Extracts program will use the YTD Taxable Total amount from the vendor record.