The 1099 Reporting Information (1099I) page allows you to define valid Taxpayer ID Number (TIN) and TIN Type combinations and provide tax related information for the 1099 Reporting process. In addition, you can designate if a record is 1099 Reportable or subject to Backup Withholding.
Depending on your site’s security setup, records can be added to this table manually or through the Vendor/Customer Creation (VCC) or Vendor/Customer Modification (VCM) transaction. Records may also be modified on this table manually or through a Vendor/Customer Modification (VCM) transaction. You can use the Create New Record or Modify Existing Record actions that are available on the Vendor/Customer table to easily create these transactions. You can also create these transactions from the Transaction Catalog. In some cases, a record can be automatically created on this page by information from a Payment event. This occurs when a Miscellaneous Vendor is used on a Payment Request and a TIN/TIN Type is provided on that Payment Request that does not exist on 1099I. When this occurs, the TIN/TIN Type and Payment Address are used to create a new record on 1099I.
When adding/modifying records on this page, if the 1099_CITY_ST_ZIP_VALIDATION parameter on the Application Parameters (APPCTRL) table is Yes, and the Country associated with the State is US or USA, then the address is validated against the City State ZIP (CSZ) table. If a matching record is not found for the City/State/ZIP combination, then an error is received.
The name, address, and Name Control on this table should follow guidelines allowed by the IRS as they are reported to the IRS. Unallowable characters will be removed. Name Control is inferred based on the TIN Type. For unique names or special circumstances, Name Control should be manually entered.
Due to the many rules for Name Control, it will be inferred if the field is blank. Inference will be based on whether the vendor is an individual or business. Name Control allows up to four alpha-numeric characters. Blanks may only be present at the end. For individuals, only hyphen or space is allowed but not in the first positions. Name Control will be set based on the last name (Mary Cedar-Hawthorn -> CEDA or Sunny Ming Lo -> LO). If the Last Name field is not entered, it will be set based on the last word of the name. For businesses, hyphen, ampersand, and space are allowed but not in the first position. Name Control will be set to the first four characters of the Name field. If the first word is 'The', it will be disregarded unless it is followed by only one other word.
Selection of the 1099 Reportable flag indicates that the associated TIN and TIN Type combination are eligible for 1099 reporting. This field will default to checked when creating a new record if the Default 1099 Reportable parameter on the Application Control (APPCTRL) table is set to True. In this situation, if a TIN and TIN Type should not be 1099 reportable you will have to deselect the flag when creating a new record.
The 1042-S Reportable check box is automatically selected by Advantage, if the TIN/TIN Type combination on 1099I has an associated record on 1042I with the 1042-S Reportable check box selected.
Select Related Pages > 1042-S Reporting Information from the page-level menu to transition to the 1042-S Reporting Information (1042I) table. Records on 1042I are filtered based on the TIN/TIN Type selected on the 1099I table. If the TIN/TIN Type selected on 1099I does not already exist on 1042I then the first record on the 1042I table is displayed.
A TIN/TIN Type’s eligibility for Backup Withholding is also defined on 1099I by changing the status in the 1099 Backup Withholding Status field. Valid values for this field include Blank, Pending and Eligible.
Blank – No value is selected.
Pending – Confirmation of eligibility for Backup Withholding is currently ongoing. This value may be set to Pending manually or by the Print Backup Withholding Notices batch process when a file is received from the IRS to initiate Backup Withholding.
Eligible – A TIN/TIN Type is eligible for Backup Withholding. The value may be set manually or by the Initiate Backup Withholding batch process.
A specific TIN is subject to Backup Withholding and deductions will occur when:
The 1099 Processing Options and Control (1099P) table has the 1099 Backup Withholding option selected for the Calendar Year,
The Backup Withholding field is set to Eligible on 1099I for a specific TIN/TIN Type combination,
The Chart of Account element (Object, Sub Object, Balance Sheet Account or Sub Balance Sheet Account) used on Transaction is 1099 Reportable, and not set to excluded on the 1099 Backup Withholding Exemption, and
The Type of Income record (TINC) associated with the Chart of Account element has the Backup Withholding flag selected.
The Backup Withholding Exemption field allows you to indicate whether the taxpayer is exempt from Backup Withholding, by selecting a valid value from the drop-down.
The Exemption from FATCA Reporting Code field allows you to indicate whether the taxpayer is exempt from FATCA Reporting, by selecting a valid value from the drop-down.
This page contains one record for each Taxpayer ID Number (TIN) and TIN Type combination. If TIN for an existing vendor has changed, enter the new TIN/TIN Type record, and then complete the information in the TIN Change section on the original TIN/TIN Type record and select the Update All Vendor’s check box. Selecting the Update All Vendors check box with the new TIN Information option will update all vendors and 1042-S Reporting table records that share the same TIN and TIN Type information.
If the Send to IRS Enforcement flag is selected on the Vendor Customer Configuration (VCNFG) page and when a new record is added on the 1099 Reporting Information (1099I) page through the Vendor/Customer Creation (VCC) and Vendor/Customer Modification (VCM) transactions or the Name field is modified in the existing record on 1099I or the Name field is modified through the VCM transaction, the Send to IRS flag is automatically selected on 1099I.
The Certification tab allows you to track whether the vendor’s 1099 Reporting Information has been verified. Certification fields indicate when and how the information was verified. The Certification section also allows you to indicate whether the 1099 Reporting Information entry is ready to be selected by the IRS TIN/Name Match Extract process. The IRS TIN/Name Match Extract batch process extracts Taxpayer ID information so that it can be matched to IRS records using the IRS TIN/Name Match e-Service. This job selects all eligible records from 1099I where the Taxpayer ID and TIN Type are populated and the Send to IRS and 1099 or 1042-S Reportable flags are checked. The IRS TIN/Name Match Update process updates the records based on the file received back from the IRS. The IRS Match Status field captures the match status received from the IRS as part of the IRS TIN/Name Match e-Service. Refer to the Accounts Payable User Guide and Accounts Payable Run Sheets Guide for more information.