1098 Processing Options and Controls (1098P)

The 1098P table allows a user to define the parameters required by the Offline 1098 Batch Process to evaluate reportability, create data files, and generate audit reports. Selection criteria for each calendar year are entered on two tabs: General Information and Options & Controls. Entries to this page can be added and changed throughout the calendar year as the Offline 1098 Process can be executed multiple times. The batch process will issue an error and stop if the calendar year defined by the batch parameter does not contain a record on this table.

The General Information tab provides the calendar year for which the parameters are valid, the processing mode, last processing mode, the input to be used, the reports to be generated, and whether the process is running for corrections or not.

Processing Mode determines how the 1098 records are processed. The purpose of each mode is as follows:

Forms: Send the forms out to the vendors in advance of generating the magnetic media text files that will be used to generate the IRS Transmittal file. This can help to reduce the amount of correction records to be reported to the IRS. If the Forms Generation Report is checked, it will also be produced. NOTE: If you are using the Advantage Tax Reporting module, it is not necessary to run in Forms mode. The files produced from Forms mode cannot be used by the Forms Table Load chain to update the Form Reporting tables.
Magnetic Media: To generate the Magnetic Media Audit report and two sets of text files. One set for Advantage Tax Reporting module in the Export-import folder (APPCTRL: USE_ADV_TAX_REPORTING = Yes), and one set for a third party tax software in the Report Output folder. The Advantage Tax Reporting text files are used by the Forms Table Upload Chain job to load the records to the Forms Reporting tables. It is from the Forms Reporting tables that the forms can be printed and the IRS Transmittal produced to send to the IRS. Therefore, the Offline 1098 process does not need to be executed in Forms mode for Tax Reporting sites.
Correction: To generate the Magnetic Media Audit report as well as one set of text files with the corrected 1098 records to be used as stated above. Newly inserted records, since the last Offline 1098 run, will also be picked up in Corrected mode. The files uploaded to the Forms Reporting tables are used to generate the corrected forms and the corrected IRS Transmittal file.

The Processing Mode parameter provides the following options for how to process the 1098 records:

Processing Mode	Input	Processing Ind on Reported Income table records	Forms generated (Y or N)	Third Party Data Files Generated (Y or N)	Tax Reporting Data Files Generated
Forms	The input will be the records on 1098ER with a Processing Indicator of Updated, or New.	Forms	Y (if loaded into a third party tax program)	Y	N
Magnetic Media	1098ER with the Processing Indicator of, Updated or New if this is the first run of the Offline 1098 Process for a Calendar Year. If this is not the first run of the Offline 1098 Process and Forms mode was the previous run, the input will be the records on 1098ER with a Processing Indicator of Forms, Updated, or New.	Magnetic Media	Y	Y	Y
Correction	Records on 1098ER with a Processing Indicator of Updated or New.	Corrected	Y	Y	Y

More InfoMore Info

The first time the Offline 1098 Process is executed for a calendar year, the 1098 External Reported Income table must be used as input.

Once the process runs in Forms and/or Magnetic Media modes, procedurally any necessary corrections are applied to the current record on 1098ER. Therefore, the 1098ER table is used as input for any further executions of the Offline 1098 Process. A new record is created on 1098ER for each record processed (based on the Processing Mode and Input criteria). The only exception occurs when the input record has a Processing Indicator of New or Updated. In this case, no new record is added, but instead the Generation Date and Processing Indicator are updated on the existing record. If the Processing Indicator is New or Updated, multiple changes can be applied to the record using the Edit Reported Income link.

The Last Processing Mode field on the 1098 Processing Parameters window indicates in what mode the Offline 1098 Process was previously executed. This indicator is initially [spaces] and gets updated by the Offline 1098 Batch process with the corresponding processing mode. When the indicator is [spaces], the Offline 1098 Process uses 1098 External Reported Income as input. The Last Processing Mode also determines what Processing Mode the Offline 1098 Process can be executed (as indicated in the following table).

Processing Mode	Last Processing Mode
Forms	[spaces]
Magnetic Media	[spaces], or Forms
Corrected	Magnetic Media or Corrected

The Options & Controls section contains settings that help control the 1098 functionality.

Field InformationField Information

The 1098 Account Number Format CVL on 1098P controls the format of the Account Number assigned on 1098ER records. The Form Type/TIN/TIN Type/Unique Number is the default value and results in an Account Number that consists of the Form Type, TIN, TIN Type, and the next unique number from the 1098 Next Unique Number field on 1098P. The CY/Rept Payer/Date/Unique Number results in an Account Number that consists of the Calendar Year, Reporting Payer, Date the record is added to 1098ER, and the next unique number from the 1098 Next Unique Number field on 1098P. It is used for 1098ER records if the Account Number is blank on the input file for the Upload 1098 External Reported Income chain job.
1098 Next Unique Number indicates the next unique number to be used for the generated Account Number for 1098 records.