About Processing and Filing Information Returns
ONESOURCE Trust Tax allows you to prepare, review, process and file original and (if necessary) corrected information returns with the IRS for the following forms:
- Form 1098, Mortgage Interest Statement
- Form 1099-B, Proceeds From Broker and Barter Exchange Transactions
- Form 1099-DIV, Dividends and Distributions
- Form 1099-INT, Interest Income
- Form 1099-MISC, Miscellaneous Income
- Form 1099-NEC, Nonemployee Compensation
- Form 1099-OID, Original Issue Discount
- Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530)
- Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
- Form 5498, IRA Contribution Information
- Form 5498-ESA, Coverdell ESA Contribution Information
ONESOURCE Trust Tax supports direct state filing and the IRS Combined Federal/State Filing program (CF/SF or CFS program) for Forms 1099-B, 1099-DIV, 1099-INT, 1099-MISC, 1099-NEC, 1099-OID, 1099-R and 5498. For participating states, the CFS program allows the IRS to forward original and corrected information returns to the state.
note
Even though a state may participate in the IRS CFS program, the state may also have a direct filing requirement. For example, a participating state may require information returns with state withholding to be reported directly to the state.
About 1099 Service Levels
When you use ONESOURCE Trust Tax, certain features are available to you depending on the 1099 service level you use. The 1099 service level is determined at the account level and may vary by account. The following table summarizes the features available for each 1099 service level:
1099 Service Level | Features Available |
|---|---|
Premium (1099 with full detail) (commonly referred to as the Premium service level) |
|
1099 with reported detail only
(commonly referred to as the With Nominee Detail service level) |
|
1099 with no detail |
|
About the Enhanced 1099 Format
The Enhanced 1099 format presents tax information in a format similar to a brokerage statement. Tax documents are generated as Adobe PDFs, and can be printed at your organization (referred to as local print), or by using the Mail Service and/or Bulk Shipping print and delivery options.
With the Enhanced 1099 format, you have the option to include your organization's logo on specific pages. If you are interested in printing a logo, you will need to work with your Client Manager to prepare the logo. Additional fees may apply for this service.
The following table includes all of the pages that may be included in an Enhanced 1099 document, and provides information about how the various service levels affect what is printed on the page:
Page | Details |
|---|---|
Diagnostic page | This page prints once before any recipient package. The Diagnostic page is suppressed when printing through Mail Service. |
Cover or Shipping page | The address information prints in the location that allows for specific window envelope stock to be used. Protects personally identifiable information from being viewed through the envelope windows. |
Custom inserts | Custom inserts are PDF files you upload to ONESOURCE Trust Tax for recipient packages of all information returns except Forms 1099-MISC, 1099-NEC and 1042-S. Uploaded PDF files apply only to the tax year they are uploaded to. During the upload process, you can select where the custom insert appears (either after the cover or shipping page, or following the last instruction page). |
Contents page | This page, which is the first page of the recipient package, prints regardless of the 1099 service level selected. The Questions? section includes the contact information if it is specified as a PAN-level Enhanced 1099 option. |
1099 Greeting Letter | The 1099 greeting letter is available only if the Premium 1099 service level is selected. You can compose as many 1099 greeting letters as you want and assign to specific accounts or groups of accounts. |
Tax Summary page | This page is available only when the Premium 1099 service level is selected. It is a summary of the income and deductions reported on Forms 1099-B, 1099-DIV, 1099-INT and 1099-OID. It does not apply to Form 1099-MISC. The items within each tax category on the Tax Summary page do not print if the amount is zero. The Payments made on Behalf of Recipient section prints for accommodation payments. |
Summary of Corrections page | This page is available beginning in tax year 2020 and is available for Forms 1099 DIOB only when:
The Summary of Corrections page prints in the recipient's correction package. It includes only the 1099 DIOB boxes with changes or corrections from the previous, most-recently processed 1099 DIOB return. If there are multiple frozen 1099 documents, the return with the most recent compute date is used to compare the corrected return compute. If there are no frozen documents, the Summary of Corrections page does not print. note
For tax year 2020 corrections, the previous document must have a compute date after November 17, 2021 for the Summary of Corrections page to print. If the previous (originally filed) document was processed prior to November 17, 2021, consider reprocessing the document then freezing it manually prior to making the changes required for the correction. |
Consolidated Forms page (also referred to as the Combined Year-End 1099 Forms page) | This page complies with IRS specifications for substitute statements provided in Part 4 of IRSPublication 1179 . It includes a summary of the total amounts reported on Forms 1099-B, 1099-DIV, 1099-INT and 1099-OID. If the amount for an item on one of the forms is zero, the item prints, but an amount does not print. note
Due to the addition of boxes 2e and 2f on Form 1099-DIV, the Consolidated Forms page for tax year 2021 prints on two pages. Forms 1099-DIV and 1099-INT print on the first page followed by Forms 1099-B and 1099-OID on the second page. |
Summary of Foreign Investments page | If foreign taxes were paid on dividends or interest income, they are itemized on this page, showing the foreign country, the amount of foreign income and taxes paid to that country. This page does not print if there are no foreign investments. This page is included for all 1099 service levels, if applicable. |
Form 1099-B | The amount of detail printed for each sale depends on the type of asset (for example, covered or noncovered), the 1099 service level and the PAN-level Enhanced 1099 option. For covered securities, the IRS requires cost basis information to be provided to recipient and the IRS. For noncovered securities, reporting cost basis information is optional, and depends on the 1099 service level and the selection for the Report basis information for noncovered securities on 1099-B to the IRS (Premium service level only, beginning with 2011 tax year) (Basis for noncovered securities always prints in recipient packages) Enhanced 1099 option. |
Form 1099-OID | |
Form 1099-MISC | |
Dividends and Interest detail | If the Premium (1099 with full detail) or 1099 with reported detail only 1099 service level is used, dividends and interest are itemized by category along with any taxes paid or withheld. This detail does not print for the 1099 with no detail 1099 service level.You can choose to see the detail summarized by asset or at the individual transaction level. The Premium 1099 service level includes dividends and interest not reported on the 1099. The 1099 with reported detail only 1099 service level includes only dividends and interest reported on Form 1099-DIV or 1099-INT. |
Other Tax Information detail pages | This section prints only when the Premium 1099 service level is selected. It includes other tax information not required for 1099 reporting. This includes sales and OID not reported on Form 1099-B or 1099-OID. The Payments made on Behalf of Recipient section includes detail of expenses in the account showing portions available for allocation to tax exempt income and accommodation payment. |
TEI Allocation page | This page prints only when the Premium 1099 service level is selected and when there are expenses that have been allocated to tax exempt income. It summarizes taxable and tax exempt income, shows the calculation used for allocating expenses to TEI and the resulting expense break down. |
1099 Forms Instructions | All of the 1099 Forms Instructions pages are printed together at the end of the document. |
Items Not Supported for Enhanced 1099s
The following are not supported for Enhanced 1099s:
- State beneficiary messages, and state-specific information for the state beneficiary message.
- Closed accounts processed within the year the account closed, unless processed as a projection. For example, a 2019 closed-year account beginning January 1, 2019 and ending on April 13, 2019 cannot be processed until the 20.01 release of ONESOURCE Trust Tax.
- Account footnotes. Beneficiary footnotes are supported.