Create IRS 1099 File / Upload File
The Create IRS 1099 File / Upload File routine creates a file of 1099 tax information that is suitable for filing electronically with the IRS. Alternatively, you can create a file of 1099 tax information in .csv (comma delimited) or .sdf (fixed length) text format suitable for uploading into other software, such as Microsoft Excel.
You can create an IRS 1099 file for years prior to the current organization year only (run Year End Update to increment an organization year).
If your organization will be submitting tax information for 250 or more 1099s to the IRS under one tax ID number, it must submit the information electronically in IRS-specified format. For the few organizations that use GiftWrap to maintain tax information that is reported on 1099-INTs, 1099-DIVs, or 1099-MISCs, GiftWrap allows tax information for these 1099s also to be included in the IRS 1099 file.
Note: The IRS does not accept 1099 information submitted magnetically on a 3½" diskette.
1. Click 1099 Tax > Create IRS 1099 File on the Menu Bar.
2. If the organization that made the payments (the Payer) is not the transmitter of the IRS 1099 file, click Outside Agency/Administrator is Transmitter in the Transmitter Information area (see Notes below for more information). For example, a bank that transmits 1099 information on behalf of a charity should click Outside Agency.
3. Enter other selection and sort criteria for the 1099 information to include in the file. There is help available on each field.
4. Click OK. If you get an error log, see Notes below.
5. Open or save the file, as needed.
The name of the file is IRSTAX, the name required when you submit the file to the IRS.
6. Click 
to close the File Output page.
Special handling of 000-00-0000 allows inclusion of beneficiaries who have no social security number
Beneficiaries who are assigned an SS Num of 000-00-0000 in their Person Information page are handled in a special way by the 1099 File routine. The routine includes beneficiaries who have an SSN of 000-00-0000, but blanks out their SSN where it appears in the file: positions 11-20 in the "B" record. This approach enables you to include beneficiaries who do not have an SSN, such as foreign beneficiaries, in a 1099 File.
To file 1099 information with the IRS electronically
Before you submit IRSTAX to the IRS for the first time, you must submit a completed Form 4119, Application for Filing Information Returns Magnetically/Electronically. When you subsequently submit IRSTAX to the IRS on a tape, it must be accompanied by a completed Form 4804. Both forms are included in IRS Publication 1220. Call 1-800-829-3676 or visit www.irs.gov/formspubs/index.html to request this publication.
For full information on how to file 1099 information electronically over the internet, visit the IRS's FIRE web page: www.irs.gov/taxpros/providers/article/0,,id=98045,00.html
One advantage of filing 1099-R information electronically is that the deadline for submission is later: March 31 of the year following the tax year if submitting electronically, February 28 of the year following the tax year if submitting on paper. If either date is not a business day, then the deadline is the first business day after the date.
To create a replacement IRS 1099 file after one is rejected by the IRS
The IRS will reject a 1099 file (IRSTAX) if it encounters technical problems with the file. In this case, the IRS will return the file, along with a Media Tracking Slip (Form 9267). If the IRS rejects your 1099 file, please call PG Calc at 888-474-2252 for assistance in determining what went wrong and fixing any data problems.
To correct 1099 data submitted to the IRS in a 1099 file
You may discover data errors, such as incorrect income amounts, in a 1099 file after it has been submitted to the IRS. In this case, do not resubmit the file.
Instead, fix the incorrect 1099 data that is stored for the individual annuitants in GiftWrap. Then, use Print 1099-R Forms to print corrected 1099-R forms for just these individuals. See the IRS instructions for filing Form 1099 for complete information on filling out and submitting corrected 1099-Rs.
Unless you have to correct tax IDs, you can simply use a pen to mark the "Corrected" box on each paper form after you have printed the corrected forms, then submit the forms to the IRS. If you do have to correct tax IDs, correcting the mistake is more involved and you should read the IRS filing instructions carefully.
If you need to submit up to 249 corrected 1099-Rs, you need to send the IRS the IRS copy of the corrected paper forms, even if you submitted an IRS 1099 file originally.
If you need to correct 250 or more 1099-Rs, the IRS requires that you submit the corrected information electronically. In this case, call us at 888-474-2252. GiftWrap cannot create an IRS 1099 file for corrected data without some small adjustments made by PG Calc.
Notes:
· Although you may choose among several tax form types when creating an IRS 1099 file, most organizations use GiftWrap only to report the 1099-R tax information on their gift annuitants.
· Every charity must submit 1099 tax information for the year to the IRS by February 28th of the following year (or first business day thereafter if February 28th is a weekend day) if submitted on printed forms or magnetically, by March 31st (or first business day thereafter if March 31st is a weekend day) if submitted electronically.
· Use the error log to help troubleshoot any errors in your 1099 data prior to creating an IRS 1099 file. The log will identify each problem it encountered. You can print the error log or save the log in a file that you can print or review later. Click Continue and go to the next step in the procedure.
If you choose the Charity as the Transmitter and ask to produce the IRS 1099 file for all organizations in your database, the following data must be identical in the Organization Information windows of every organization: Org. Name, Street, City, State, Zip Code, Phone, Tax ID #, Control Code (TCC), Contact Name, and Contact e-mail. If this information isn't identical across all organizations, make it so temporarily using Setup > Organization, create the IRS 1099 file, then change the data back when you're done, as necessary. Alternatively, create a separate IRS 1099 file for each organization.
· If you produce the IRS 1099 file with Charity chosen as the Transmitter, the transmitter information is drawn from the charity organization setup window. To review or edit this information, choose Setup > Organization and double-click the charity row in the list.
· An outside agency may submit 1099 information on behalf of numerous organizations in a single IRSTAX file. To do this, select Outside Agency/Administrator is Transmitter as the Transmitter. While the Outside Transmitter information is displayed in the 1099 File tab, this information is entered under 1099 Tax > Outside Transmitter for 1099 File. Be sure that the TCC number of the outside agency is entered in the TCC field, not the TCC number of any of the organizations for which the outside agency is submitting the file.
· To get a transmitter control code for your organization, submit Form 4419 to the IRS. Form 4419 is included in IRS Publication 1220 (call 1-800-829-3676 to request this publication). If you need a TCC immediately, you can call the IRS Computing Center at 304-263-8700. They usually can provide a TCC number within a few days.