Sites can transmit 1099 and 1042-S tax form information to the IRS within Advantage Financial using the IRS Transmittal File Generation batch process. The process will generate data files that conform to the IRS specifications (see publications 1187 and 1220). The form data are retrieved from the Form Reporting tables (F1099A, F1099C, F1099G, F1099I, F1099M, F1099N, F1099R, F1099S, and F1042S).
The IRS Transmittal File Generation process will support the creation of “K” records for sites who is participates in reporting the State information to the IRS. The 1099 Reporting Payer record on 1099RP must have the Combined Federal/State Filer (CF/SF) checked. The process will only create “K” records for the recipient state that participates in the CF/SF program. The option to specify whether a state participates in the CF/SF program is on the State (ST) table.
For Tax Years 2018 and 2019 only, the IRS Transmittal File Generation batch process can be executed to select only 1099-MISC records with non-employee compensation (NEC), Box 7. This can be accomplished by setting the appropriate batch parameter. Starting in Tax Year 2020, the non-employee compensation should be reported on the Non-employee Compensation form (1099-NEC).
The Tax Box Cross Reference (TAXBXRF) page must be updated with the current year’s form information in order to generate the files correctly for the amount codes. Refer the Accounts Payable Run Sheets Guide for details of the IRS Transmittal File Generation process.