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1099 Tax Reporting Program

1099 Tax Reporting Program. Defense Finance & Accounting Service DFAS Tax Office August 2010. General – Program Description. What is the 1099 Tax Reporting Program (1099TRP) Application created to collect & report to the IRS payments made by DoD for “services”. . SANDY. ’. S BAR & GRILL.

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1099 Tax Reporting Program

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  1. 1099 Tax Reporting Program Defense Finance & Accounting Service DFAS Tax Office August 2010

  2. General – Program Description What is the 1099 Tax Reporting Program (1099TRP) Application created to collect & report to the IRS payments made by DoD for “services”.

  3. SANDY ’ S BAR & GRILL 222 SANDWICH BLVD SOMEWHERE WV 24946 General – Convenience Checks IRS form 1099-Miscellaneous

  4. General – Convenience Checks Transactions for services are payments made for work performed rather than purchase of goods.

  5. General – Convenience Checks • Examples of reportables • Dry cleaning of uniforms • Booth rentals for job fairs/recruiting • Maintenance fees • Instructor and speaker fees • Examples of non-reportables • Goods/products • Payments to any government agency • Payments to Federal tax-exempt business

  6. System Access User roles & permissions • Agency Program Coordinator (APC) • Convenience Check Transaction Screen • Review • Add • Modify • Delete • Convenience Check Report • View • Print

  7. System Access User roles & permissions • Approving Official/Billing Official (AO) • Convenience Check Transaction Screen • Review • Convenience Check Report • View • Print Note: It is a conflict of interest to be able to approve payments & have the ability to manipulate payment data.

  8. System Access User roles & permissions • Checkwriter (Account Holder) • Convenience Check Transaction Screen • Review • Add • Modify • Delete • Convenience Check Report • View • Print

  9. System Access Obtaining user id & password • Each person requesting access must complete • DD form 2875 • DD form 2869

  10. System Access DD form 2875 (versions 2009) • APC, AO, or Checkwriter completes • Type of Request, Date, System Name • Part I, all blocks • Part II, blocks 13 thru 20b • Your Security Manager completes • Page 2, Part III, all blocks • Tax Office completes • Location • Part II, blocks 21 thru 25

  11. System Access – DD form 2875

  12. System Access DD form 2869 (version 2007) • APC, AO, or Checkwriter completes Section I, all blocks • APC completes Section II, all blocks • Tax Office completes Section III, all blocks

  13. System Access – DD form 2869

  14. Initial System Access Sun Java Plug-in • Must be loaded on PC • Allows user to view application • Message will appear if not loaded • Contact your LAN/Technical Office to load

  15. Initial System Access Public Key Enabled (PKE) Registration w/Common Access Card (CAC) • Receive initial userid & password • Access the 1099TRP website • Required to register user id & password

  16. Initial System Access Registering for PKE • Open web browser • Input 1099TRP web address • .mil agencies: https://dfas4dod.dfas.mil/systems/1099 • .edu agencies:https://dfas1099trp.csd.disa.mil • .mil receives 1099TRP Homepage; .edu does not • Click link, “Enter the 1099TRP here” • On PKE Screen enter userid & password • Click Register Button • Receive message, “Successful Registration”

  17. Initial System Access- PKE Screen

  18. Initial System Access After PKE Registration • Use CAC & CAC pin • No more user id & password • Must access Program at least once every 90 days to avoid being locked out

  19. Initial System Access Steps to Sign into 1099TRP • Open web browser • Enter 1099TRP web address • Receive 1099TRP Homepage • Click link, “Enter the 1099TRP here” • Select digital certificate, click OK • Enter CAC pin, click OK • Program loads • Receive Warning screen, click OK

  20. 1099TRP Homepage • Link to access the 1099TRP • Convenience Check User’s Manual • Informational messages • DD Forms 2875 & 2869 • GSA SmartPay Presentation • What is & is not reportable • IRS Charity Site • Public/Private Colleges & Universities

  21. 1099TRP Homepage

  22. System Overview Welcome screen • First screen of Program • Provides current status of the 1099TRP • Convenience Check Data entry point • Tool bar

  23. System Overview - Welcome Screen

  24. System Overview Convenience Check Entry Transaction Screen • All users are permitted access to this screen • Convenience check data entered here • Divided into 3 tabs • Transaction Screen • Merchant Screen • Sole Proprietor Screen

  25. System Overview – Transaction Screen

  26. System Overview – Transaction Screen Category • Non-Employee Compensation • Pay merchant/individual for services, not employee • Most often used • Rents Pay to use a space or equipment • Medical & Heath Care Pay doctor, dentist, or hospital • Gross proceeds paid to an attorney Pay attorney for legal services

  27. System Overview – Merchant Screen

  28. System Overview – Merchant Screen Tax Identification Number (TIN) • Social Security Number (SSN) • Individual or Sole Proprietor • XXX-XX-XXXX Always 9-digits, no letters • Employer Identification Number (EIN) • Merchant/Business • XX-XXXXXXX Always 9-digits, no letters • Must match name registered on IRS records Important: Protect the TINs

  29. System Overview – Sole Proprietor Sole Proprietor

  30. System Overview – Sole Proprietor • Sole business owner • Owner and business names different William R Smith Bill’s Lawn Mowing Service • Not partnership or corporation • Usually small business • Has SSN; rarely has an EIN

  31. Check Report Convenience Check Report Request • Screen is accessed from Reports menu • All users have access to their authorized accounts

  32. Check Report Convenience Check Report Request • Can be sorted by • Check date • TIN • Merchant Name • Month • Year • Click Select box • Click Run button

  33. Check Report Convenience Check Report Request ACCOUNT CONFUSED, DAZED A 444455566610000 (Active) CHECK # DATE AMOUNT TIN MERCHANT 1099 ISSUED? CATEGORY 234 06/25/10 94.00 XXXXXXXXX VICKY’S GOWNS OF GLORY NO NONEMPLOYEE COMPENSATION 2468 DRESS AVE, BOWLING LANE, OH 43352

  34. General – Purchase Card Do not input any purchase card data DFAS receives & reports it electronically

  35. Updates • PKE - no more passwords after initial registration • Changes to reporting requirements Section 6041, Internal Revenue Code • 2011 • Banks issue tax forms for purchase card payments • Decision pending on banks issuing tax forms for convenience checks • 2012 Reporting requirements apply to goods & services

  36. Web Addresses • .mil or .gov web address https://dfas4dod.dfas.mil/systems/1099 • .edu web address https://dfas1099trp.csd.disa.mil

  37. E-mail Address cco.checks@dfas.mil • Access issues • Access requests • General reporting questions • General Program questions Hey, email us

  38. Half-Way Point Nooo not yet. Are we done yet? Are we done yet? Are we done yet?

  39. Good To Know • Enter, Save, Add. Enter, Save, Add… • Clear commands – Clear & Cancel • Remove unwanted record - Delete, Save • Find a record - Query • Move backward or forward - Previous or Next • Idle time 30 minutes – Oh, I’m knocked out & must log back in

  40. Good To Know • The tax year is Calendar Year, not Fiscal Year • December 31 is the absolute, last day for inputting check data!! Or was it December 32?

  41. Responsibilities • Whose responsible for inputting & ensuring the convenience check data is reported correctly? • You are

  42. Responsibilities – All Privacy Act Information • TINs • Names & Addresses • Account Numbers Pssssst….secure it

  43. Responsibilities - Checkwriter • Obtain merchant info for tax reporting • Legal name & address • Tax Identification Number (TIN) • Obtain check data • Check number • Date check was written • Check amount • Brief description of what was purchased • Input merchant & check data at least monthly • Review input for accuracy

  44. Responsibilities - APC • Ensure Checkwriter obtains merchant & check data • Ensure check data is input at least monthly • Review input for accuracy • Input data in the absence of Checkwriter

  45. Responsibilities - AO • Ensure Checkwriter obtains merchant & check data • Ensure check data is input at least monthly • Review input for accuracy

  46. Data Review • Merchant data consistent? • Merchant data free of misteaks? • Sole Proprietor correctly identified? • Check number correct? No duplicates? • Dollar amount correct? No extra zeros? • Only reportable data input • Reportable data input for any $ amount ($600 threshold applies to the Tax Office)

  47. Data Review What happens when the data is input incorrectly?

  48. Data input incorrectly in 1099TRP DFAS issues tax forms & reports data to IRS APC, AO, & Checkwriter do not review data Angry merchant contacts DFAS IRS audits merchant

  49. What happens when an angry merchant contacts us? You could be taken on a three-hour tour

  50. Audits What happens when you are audited and you did not report your check data? You’ll be sorry

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