Create Electronic 1099s

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This program will produce a diskette that can he submitted to the IRS to meet the magnetic media requirements for Forms 1098, 1099,5498, and W-2G. You should review the tax laws to see if you are required to file on magnetic media. Please note that even if you are required by law to submit your information on magnetic media, you are required to get permission from the IRS before you can do so. Be sure you have filed the proper forms and received your Transmittal Control Code number before you run this program.

If you are required to file on magnetic media, be sure to run this program at year end before you run the year end closing programs. It is critical that your vendor file be updated for current addresses, Federal identification numbers and vendor type codes. It is also critical that the state names be a 2 character abbreviation and that these abbreviations agree with those used by the postal service.

Be sure to insert your diskette into drive A at this time. This diskette must be a newly formatted diskette. You can check your IRS booklet on Magnetic Media requirements to see the specific type of media that can be used.

The following information will be asked on the first screen.

Company Name

The company name will be pulled from your company information file. Be sure it is correct.

Address

The company address will be pulled from your company information file.

City State Zip

Be sure to use a two digit abbreviation for the state. You can use either 5 or 9 digits for zip codes.

Federal ID Number

This number is limited to numeric digits only. We will attempt to extract any dashes, slashes, or blanks from the number contained in your company information file. Be sure the number that is displayed is correct.

Payment Year

Enter a two digit number for the year.

Payer Name Control Code

The Payer Name Control Code can be obtained from the mail label on the 1099 Package that you received from IRS.

Combined Federal/State Filer Code

If you are required to file magnetic media 1099's with any state, you can answer one to this question and this can be a combined filing for both Federal and state.

Transmitter Code

When you apply with the IRS to submit by magnetic media, you will be issued a five character transmitter code. Enter that code in this field.

Foreign Corporation Code

Enter 1 if you are a foreign corporation, else leave the field blank.

Contact Name

Contact Phone Number

O=Original File; R=Replacement; C=Correction

Payer Phone Number

Select the type of 1099 you will be submitting.

The above screen will differ for each type of form you select. The above example is for a 1099-MISC. In each vendor's record you were asked a vendor type. You should place those vendor codes beside the appropriate category shown above. If, for example, you have used a vendor type 2 to identify "Non-employee Compensation", you should place a 2 beside "Non-employee Compensation" on the above screen. You should enter the vendor type code beside any and all categories that are applicable to you.

Each type of form and each category within that form have different criteria for determining which vendors should get 1099's. These dollar limitations have been built into the program. If this dollar criteria should ever change, you must get an update to this program. This dollar criteria is listed in your IRS booklet.

You must have a valid Federal ID number or social security number in each vendor's record. When you enter this information in the vendor's record, we have always suggested that you enter blanks or slashes within the number to allow easy reading. The IRS does not allow characters within the number on magnetic media. The IRS also requires that the number be identified as either a Federal ID number or a social security number. There is no such code in the vendor record. This program will extract any blanks or non-numeric characters from the number. As we extract these characters, we can normally determine if the number is a Federal ID number or a social security number, depending on the placement of these characters within the number. If the program cannot determine whether the number is a Federal ID number or a social security number or if the number is blank or invalid, you will be asked the above questions. If you do not know the number, you can force the computer to continue by entering a blank code and a blank number.

If you have more than one type of return to file, such as a 1099-MISC and also a 1099-INT, you can continue to process different types of forms on the same diskette.

If you have more than one company, you should use separate diskettes for each company. Be sure to return to the menu before you attempt to process another company.

There are specific instructions on how to affix the labels to your diskette, etc. Be sure to review your booklet for these instructions.

Also, please note that you will still be responsible for printing the regular 1099, etc. forms. You must continue to distribute these forms to the vendors in the normal fashion.

You should probably make a copy of this diskette before you mail it to the IRS. To make a copy of the diskette:

Go to MY Computer, locate the A drive, right click on the 1099 file and choose to copy. Then, still in My Computer, find the location where you want it stored and right click and paste. If you had rather submit on a CD or USB drive, you can perform this step and send the other media to the IRS.