The 1099P table allows a user to define the parameters required by the Offline 1099 Process to create IRS forms, data file, generated Forms Report, and/or data file 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 1099 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, whether Advantage Tax Reporting is being used, and whether the process is running for corrections or not.
Processing Mode determines how the 1099 records are processed. The purpose of each mode is as follows:
1099 Report: To generate reports so that users can preview the vendor income that would be produced from the Offline 1099 Process. This mode does not update tables or create any files. Select either or both reports; Non TIN Miscellaneous Vendors Report or 1099-S Transaction by Vendor Report.
Testing: To generate the consolidated vendor income by CY, Form Type, 1099 Reporting Payer, TIN, and TIN Type in a condensed format so that users can preview the result of the Offline 1099 Process prior to executing in Forms or Magnetic Media modes. This mode will add records to the 1099 Reporting Income (1099R) table with a Processing Indicator of Testing. The Magnetic Media Audit report will be produced in this mode.
Forms: To create text files that can be used with a third party tax software to print and 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 in 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 ExportImport 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 Tables. It is from the Forms tables that the forms can be printed and the IRS Transmittal produced to send to the IRS. Therefore, the Offline 1099 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 two sets of text files with the corrected 1099 and 1042-S records to be used as stated above. Newly inserted records since the last Offline 1099 run will also be picked up in Corrected mode. The files uploaded to the Forms 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 1099 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 |
Report |
1099 Journal |
N/A - records are not added to 1099R or 1042R with this mode |
N |
N |
N |
Testing |
1099 Journal and 1099 External Reported Income (1099ER) table (if the Read 1099ER parameter is set to 1(Yes)). |
Testing |
N |
N |
N |
Forms |
1099 Journal if this is the first run of the Offline 1099 Process for a Calendar Year. Otherwise, the input will be the records on 1099 Reported Income (1099R) or 1099ER (if the Read 1099ER parameter is set to 1(Yes)) with a Processing Indicator of Testing, Updated, or New. |
Forms |
Y (if loaded into a third party tax program) |
Y |
N |
Magnetic Media |
1099 Journal and/or 1099ER (if the Read 1099ER parameter is set to 1(Yes)) with the Processing Indicator of Testing, Updated or New if this is the first run of the Offline 1099 process for a Calendar Year. If this is not the first run of the Offline 1099 Process and Forms mode was the previous run, the input will be the records on 1099R or 1099ER with a Processing Indicator of Forms, Updated, or New. If this is not the first run of the Offline 1099 Process and Testing mode was the previous run, the input will be the records on 1099R or 1099ER with a Processing Indicator of Testing, Updated, or New. |
Magnetic Media |
Y |
Y |
Y |
Correction |
Records on 1099R or 1099ER (if the Read 1099ER parameter is set to Yes/1) with a Processing Indicator of Updated or New. |
Corrected |
Y |
Y |
Y |
The Options and Controls tab contains settings that help control the 1099, Backup Withholding, 1042-S Withholding, and 3402(t) Contract Withholding functionality.
Fields in this tab include: