to open Contact Find and select the primary contact for the internal company for which you are creating the 1099 file.Use Generate 1099 Magnetic Media to create an electronic transmittal file of 1099 vendor information to send to the Internal Revenue Service (IRS) at the end of each tax year. This file contains all information that is included on the 1099-MISC forms that you produce for 1099 vendors. It replaces the paper copies of the forms that you must otherwise submit. You can send the 1099 transmittal file through the Internet. In addition to 1099 transmittal files, Generate 1099 Magnetic Media can also generate the following:
Transmittal test files to verify the file transmission process with the IRS.
Replacement transmittal files to correct previously submitted transmittal files that contain errors.
Select Financials | Payables | Generate 1099 Magnetic Media.
Generate a 1099 transmittal file:
In Generate 1099 Magnetic Media, specify the following settings in the Selection Criteria area:
In Vendor Name From and Vendor Name To, specify a range of vendor names.
In Filing Year, select the year on which you want to report.
In Minimum Balance, specify the minimum balance on which you want to report.
In the Filing Data and Options area, specify the following settings:
Click to select the Prior Year check box if you are preparing the file for a previous filing year. The IRS considers all such files as applying to the previous 1099 processing year.
Tax ID – Specify your Tax Identification Number (TIN) or Social Security Number (SSN).
Transmitter Control Code – Specify your company’s five-character alphanumeric code.
Payer Name Control – See Determining a Payer Name Control for hints about how to determine your payer name control.
Primary Contact – Click Lookup to open Contact Find and select the primary contact for the internal company for which you are creating the 1099 file.
File - Click Lookup to open Save As, and specify the location and name of the file. For more information, see Naming 1099 Files Correctly.
Filing Purpose – Select the purpose of the filing. The valid choices include the following: Original, Replacement, and Test.
Note: If you are generating a file to replace a 1099 file that contains errors that has already been sent to the IRS, select Replacement in Filing Purpose, and then specify the replacement code in the Transmitter Control Code field and the file correction name in the File field assigned by the IRS before you go to step 3.
Click Begin Processing to generate the file.
Additional Information about 1099 Magnetic Media files
When you generate 1099 magnetic media files, consider the following:
The minimum balance that you use is governed by the requirements the IRS has put on certain boxes of the 1099-MISC form. See the IRS’s instructions for Form 1099-MISC for the current year. Or, contact your tax adviser.
Generate 1099 Magnetic Media does not support boxes 15a and 15b of Form 1099-MISC.
To preview the contents of the 1099 file, open that file by using a text editor such as Notepad. You specified the location and name of the file in File in Generate 1099 Magnetic Media.
Determining a Payer Name Control
Companies that the IRS approves for electronic filing of 1099 information typically receive a Package 1099 that contains their payer name control each December. If your company is approved for electronic filing but did not receive a Package 1099, you can determine an acceptable payer name control by using the following guidelines:
Identify the first four significant letters in the company name.
Excluding the word “the” or similar common structure words.
Excluding all characters except for the hyphen (-) and ampersand (&).
For example, HANC for The Hancock-Wood Engineering Company
The System defaults the file name to the following: 44IRSTAX <year>
For more information about 1099 electronic file naming rules, see publications available through the IRS website at www.irs.gov.
A: It is always mandatory.
A: The System supports Form 1099-MISC.
A: No.
A: Generating 1099 magnetic media files is a company-specific process. That is, each internal company generates its own separate file of 1099 information. When you prepare 1099 forms electronically, you must first specify the internal company for which you are creating the electronic file by selecting that company from the Company field on the System’s main toolbar.
A: Yes. Generate 1099 Magnetic Media automatically removes any hyphens and alpha characters from the Federal Tax ID Number or Social Security Number that you specify when it generates the electronic file.
A: No. Individual corrections to 1099 vendor information already submitted to the IRS must be submitted manually. For information about how to correct electronic submissions, see publications available through the IRS website at www.irs.gov.
You can create replacement files in Generate 1099 Magnetic Media, to replace the original transmittal file. Specify the same settings that you used to generate the original file. However, specify Replacement in Filing Purpose, instead of Original.
A: This may have occurred because you did not enter your company’s Federal Tax ID Number or transmitter control code (TCC) when you ran the file, or you did not follow the IRS’s specifications for electronic files. Other possibilities include information that is currently missing from your System database:
The primary address of your company
Your company’s primary telephone number
The telephone number and email address of your company’s primary contact person
The IRS requires all this data to be included with your submission. If the information about any 1099 vendors you reported did not include a primary or primary remit-to address, this may also have triggered the rejection. For information about IRS specifications for electronic submissions, see publications available through the IRS website at www.irs.gov.
A: This code appears immediately after the transmitter Control Code (TCC) number on the Media Tracking Slip (IRS Form 9267). The IRS sends this form to any organization whose original electronic 1099 cannot be processed.