# Presentation: 805732

## 1099 Reporting

- Presented by**Sherri Kaba**

## 1099 Reporting

- Consolidation of transactions by Tax Identification Number (TIN) occurs within the Miscellaneous Income (MINC) System in January of the following year.
- 		1099s are issued if the consolidated amount is $600.00 or 	more for 1099 type/category per IRS guidelines.
- 		Unlike W-2 reporting, taxpayers do not file 1099 Forms with 	their taxes and they are ultimately responsible for accurate 	tax reporting to IRS.
- 		Criteria within the source system determines if  	transactions will be selected for 1099 reporting.

- Office of the Chief Financial Officer

## 1099 Reporting

- Source systems and their 1099 criteria
- 		FFIS:    GLAC, Cash Account = ‘Y’
- 			BOCT, 1099 Flag = ‘Y’
- 			VEND, 1099 VEND flag = ‘Y’
- 			*All 3 flags must = ‘Y’ to be selected*
*	**	*
*	**	*PCMS: TIN is connected to Non-employee
- 			Budget Object Code is 1099 reportable
- 		SPPS 	Type of payroll transaction and/or
- 		*and *	transaction code/suffix used by
- 		EARN:	agency/NFC personnel in the system

- Office of the Chief Financial Officer

## 1099 Reporting

- 1099s are **NOT** issued to:
- 		Tax exempt or non-profit organizations
- 		Federal, state, local, or District of Columbia government 		   entities
- 		Educational institutes
- 		Foreign governments
*	**	*Vendors providing only goods, not services
*	**	*Payments for telegrams, telephones, freight, storage, or
- 		   utilities
- 		Employee wages, travel allowances, or expense 	   	   reimbursements
- Corporations **ARE** to receive 1099s per IRS regulations

- Office of the Chief Financial Officer

## 1099 Reporting

- Types of 1099s Issued by USDA from the Miscellaneous Income (MINC) System
- 		1099-G       (Certain Government Payments – Taxable                                                                       		      Grants)
- 		1099-INT    (Interest Income)
- 		1099-MISC (Miscellaneous Income – Rents, Royalties, 		                    Other Income, Medical and Health Care 			       Payments, or Non-employee Compensation)
- Responsibility of the Agency
- 		1099-C (Cancellation of Debt) – if not handled by  			NFC/Administrative Billings and Collections Branch 		(ABCO)
- 		1042-S (Foreign Person’s U.S. Source Income Subject to 		Withholding)

- Office of the Chief Financial Officer

## 1099 Reporting

- Agencies can ensure accuracy of 1099s by:
- 		Verifying that the budget object code used is valid for the 	transaction being processed.
- 		Verifying the correct vendor code is being used and the 	vendor information is correct.
*	**	*For PCMS, Convenience checks – verifying TIN, legal 	name, and address when updating PCMS.  Know special 	TIN coding for government, non-profit, and foreign entities.
- 		Processing FFIS standard voucher adjustments correctly for 	TIN or budget object code problems.
- 		Submitting the 1099 request form with all required 	documentation when requesting a 1099 action.

- Office of the Chief Financial Officer

## 1099 Reporting

- Agencies’ assistance is requested when:
- 		A vendor reports a problem related to the 1099 issued or 	non-issuance of a 1099.  This could be an amount, TIN,
- 		and/or name issue. A 1099 request form must be submitted.
- 		A 1099 is returned for an invalid address.
- 		Multiple vendor names appear on a PCMS report.
- 		A W-9 is required to complete the process.
- 		A FFIS standard voucher is required to correct a TIN 	budget object code.
- 				*	**	*

- Office of the Chief Financial Officer

## 1099 Reporting

- Who to contact with 1099 questions:
- 	Email:			_[1099HelpDesk@USDA.gov](mailto:1099HelpDesk@USDA.gov)_
- 	1099 Help Desk line:	504-426-5376
- 	Fax:				504-426-9747 or
- 					504-426-8543
- 	800 number:			1-800-421-0323, Option 3
- 						*	**	*

- Office of the Chief Financial Officer