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Form 1099

Filing Information Returns

Generally, federal information returns are filed with the IRS by submitting a request to prepare 1099 data. After the request is submitted, ONESOURCE Trust Tax creates a 1099 data file for each information return form type you are filing then submits the 1099 data files for you to the IRS. If you prepared state 1099 data files and the state participates in the IRS CFS program, the IRS forwards the information returns to the state. Even though a state may participate in the IRS CFS program, the state may also have a direct filing requirement.
In January or February of each year, an information return quick reference calendar is posted. The quick reference calendar includes specific dates when ONESOURCE Trust Tax will begin submitting 1099 data files to the IRS for you. ONESOURCE Trust Tax typically begins submitting 1099 data files to the IRS each Wednesday beginning in late February.
note
You must use ONESOURCE Trust Tax to prepare 1099 data, and you must wait until the date indicated in the quick reference calendar before you submit the request to prepare 1099 data.
You should submit the request to prepare 1099 data only after all the forms for a specific information return type are ready to be filed. Data files for Form 1098 and the 1099 series are prepared, created and submitted at a different time of the year than data files for the 5498 series. If you need to file 5498 data, you will need to submit a second request later in the year.
You cannot change the data in the
Filing Review
 register folders after you submit the request to prepare 1099 data. If changes are required, you must process and file a correction.

About Extensions

In March and again in May of each year, ONESOURCE Trust Tax automatically creates and files the request for a 30-day extension of time to file for all payers. You do not need to request a first extension.
ONESOURCE Trust Tax uses the information in the
Payer Listing
 register to generate the extensions. Before the extension is generated and filed for you, you should review the
Payer Listing
 register to ensure the information is correct. If you make changes, select
Save
.
note
The payer is the account for disbursements reported on Form 1099-MISC. This means that the 1099Misc-SP payer information is not controlled by the payer information reporting controls. For 1099Misc-SP payers to be included in the extension file, process your 1099-MISCs (by submitting a tax return processing request) before ONESOURCE Trust Tax generates and files the extension for you.
When an extension is filed, the
Date Ext Filed
 and the
Extended
 fields in the
Payer Listing
 register are automatically populated. The
Extended
 field indicates whether an extension was filed for the payer, and the
Date Ext Filed
 field indicates the date and time the extension was filed.
On the Documents and Data files page, your extension files are stored in the
Folder: 1099-Data Files as Submitted to the IRS
 category for the tax year. The name of the extension data file indicates whether the file is for a first or second extension. To access the Documents and Data Files page, select
HOME
,
Admin
 then
Documents and Data Files
.

Submitting the Request to Prepare 1099 Data

You should submit the request to prepare 1099 data only after all the forms for a specific information return type are ready to be filed. Data files for Form 1098 and the 1099 series are prepared, created and submitted at a different time of the year than data files for the 5498 series. If you need to file 5498 data, you will need to submit a second request later in the year. The date for when you can begin to submit requests to prepare 1099 and 5498 data is included in the quick reference calendar for the tax year.
Before submitting the request to prepare 1099 data, review the Filing page (select
SETUP
,
Information Reporting Setup
 then
Filing
) to ensure the following:
  • ONESOURCE Trust Tax is authorized to submit your 1099 data files to the IRS. If you have not authorized ONESOURCE Trust Tax to submit your 1099 data files to the IRS then, when you access the Prepare 1099 Data Files page, a message displays. You must authorize ONESOURCE Trust Tax before you can prepare 1099 data.
  • The information required for direct state filing and for filing through the IRS CFS program is entered.
To submit the request to prepare 1099 data:
  1. Select
    HOME
    ,
    Admin
     then
    Prepare 1099 Data
    . The Prepare 1099 Data Files page displays. It includes the following collapsible sections:
    • Prepare 1099 Data Files
      -This collapsible section is used to indicate the specific 1099 data file to prepare for filing with the IRS and with states that participate in the IRS CFS program. You can also view:
      • The type of filing. In the
        Type
         column,
        F
         indicates a federal filing and
        CFS
         indicates a Combined Federal/State Filing.
      • The PAN.
      • The date and time the last 1099 data file was prepared for the information return type. This is shown in the
        Last File Prepare Date
         column.
      • The name of the last 1099 data file prepared. This is shown in the
        Last File Name
         column. The actual 1099 data file is available in the
        Folder: 1099-Data Files to be filed with the State
         folder on the Documents and Data Files page.
    • State Direct Files
      -This collapsible section is used to indicate the 1099 data files to prepare for direct state filing. The
      State Name
       column shows each state available for direct filing. You can also view:
      • Whether the state requires identification. States requiring identification display
        Required
         in the
        State ID
         column.
      • The state reporting thresholds for states with direct filing requirements. This is shown in the
        Direct Filing Requirement
         column. A state can have a direct filing requirement even if the state participates in the IRS CFS program. For states with direct filing requirements, you are responsible for downloading the prepared files from ONESOURCE Trust Tax then filing each file with the appropriate state tax authority using the method outlined by the state taxing authority.
      • The PAN.
      • The date and time the last 1099 data file was prepared for the state. This is shown in the
        Last File Prepare Date
         column.
      • The name of the last 1099 data file prepared. This is shown in the
        Last File Name
         column. The actual 1099 data file is available in the
        Folder: 1099-Data Files to be filed with the State
         folder on the Documents and Data Files page.
      • The download date and time. This is shown in the
        Download Date
         column. The actual 1099 data file is available in
        Folder: 1099-Data Files to be filed with the State
         folder on the Documents and Data Files page.
    • If the state check boxes are unavailable for selection in the
      State Direct Files
       collapsible section, ensure the following:
      • The
        Participate in the Combined Federal State Filing and Direct Filing program for recipients with the following resident state designations
         check box is selected in the
        State Direct Files
         collapsible section on the Filing page. To access the Filing page, select
        SETUP
        ,
        Information Reporting Setup
         then
        Filing
        .
      • At least one type of 1099 data file is selected for preparation in the
        Prepare 1099 Data Files
         collapsible section.
  3. Under the
    Prepare 1099 Data Files
     collapsible section, select the
    Federal
     and/or
    State
     check boxes for the specific information return forms you want to prepare and file. Selecting a
    Federal
     check box indicates that you want the specific information return form filed with the IRS. Selecting a
    State
     check box indicates that you want the specific information return form filed with the state using the IRS CFS program.
  4. The graphic below shows that the
    Federal
     and
    State
     check boxes for Form 1099-NEC are selected. This means that the federal and state 1099-NEC forms will be prepared and filed with the IRS and with the state using the IRS CFS program.
  5. Under the
    State Direct Files
     collapsible section, select the check box for each state you want to prepare a direct filing for. If you want to prepare a direct filing for all states, select the check box in the column heading.
  6. Select
    Submit
    . Your request to prepare 1099 data is submitted and your 1099 data is placed in corrections mode. Any changes to the recipient information or 1099 details must now be made by completing the corrections process.
  7. ONESOURCE Trust Tax creates a separate data file for each information return type. Federal data files are submitted to the IRS for you on each Wednesday beginning in late February. If you prepared a 1099 data file for direct filing with a state, you are responsible for downloading the state 1099 data file and filing it with the state taxing authority using the method outlined by the state taxing authority. See Downloading State 1099 Data Files for States with Direct Filing Requirements to download a state 1099 data file.
  8. After original 1099 data files are created, ONESOURCE Trust Tax freezes the data to prevent changes to the recipients and payers in the corresponding
    1099 Filing Review
    ,
    5498 Filing Review
     and
    1098 Filing Review
     registers.
  9. On the Documents and Data Files page, federal and CFS data files are created and stored in the
    Folder: 1099-Data Files as Submitted to the IRS
     category for the tax year. State data files for states with direct filing requirements are stored in the
    Folder: 1099-Data Files to be filed with the State
     category on the same page. To access the Documents and Data Files page, select
    HOME
    ,
    Admin
     then
    Documents and Data Files
    .
  10. In the
    Folder: 1099-Data Files as Submitted to IRS
     category, the
    State
     column displays
    CFS
     for a CFS file or
    F
     for a federal file. The filename in the
    File Name
     column also indicates whether the file is a CFS file or a federal file. You can review the contents of a data file by selecting the
    File Name
     link for the data file then opening or saving the file. You should not make any changes to a prepared data file.
  11. States with direct filing requirements are in the
    Folder: 1099-Data Files to be filed with the State
     category. The
    State
     column displays the state abbreviation for the state, and the file name in the
    File Name
     column includes the state abbreviation. Selecting the
    File Name
     link for a data file allows you to download the data file to file with the state taxing authority.

Downloading State 1099 Data Files for States with Direct Filing Requirements

To download a state 1099 data file for a state with direct filing requirements:
  1. Select
    HOME
    ,
    Admin
     then
    Documents and Data Files
    .
  2. Open the
    Folder: 1099-Data Files to be filed with the State
     category for the tax year.
  3. Selecting the
    File Name
     link for the state 1099 data file you want to download. The following message displays.
  4. Select OK.
  5. Select
    Save
     on the File Download window. The Save As window displays and allows you to save the file to the where you want to save it and with the file name you want to save it as. You are responsible for filing state 1099 data files with the state taxing authority using the method outlined by the state taxing authority.

This article applies to:

  • PRODUCT: ONESOURCE Trust Tax