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Form 1099

Setting Processing Options

The Processing page is used to set options that determine whether certain transactions or sales are automatically included or excluded on your information returns. To access the Processing page, select
SETUP
 then
Information Reporting Setup
.

1099 DIOB Processing Options

For 1099 DIOBs, use the
1099Div/Int/B
 and
Income/Sales
 collapsible sections to include or exclude transactions or sales. The following graphic shows the
1099Div/Int/B
 collapsible section:
If a dividend, interest or foreign taxes paid transaction that does not have a registration code, ONESOURCE Trust Tax references the Trust Accounting Vendor (TAV) codes and minor asset types listed under the
1099Div/Int/B
 collapsible section to determine if the transaction should be included or excluded on the applicable 1099 form.
You can use the
1099Div/Int/B
 collapsible section to:
  • Include dividend, interest and OID amounts factored from Common Trust Funds (CTFs).
  • Use TAV codes to include or exclude on Forms 1099-DIV and 1099-INT transactions that do not have registration codes but that are posted to dividend, interest and foreign taxes paid.
  • Include or exclude on Form 1099-B sales of maturities based on the minor asset type of the asset.
To include or exclude transactions or sales:
  1. Select the applicable option under the
    1099DIV and 1099INT
     or
    1099B
     group box.
  2. Enter the TAV code or the minor asset type in the first field under the
    TAV Code
     or
    Minor asset type
     group box.
  3. Select the
    Add
     link to add the TAV code or minor asset type to the list.
  4. Select
    Save
    .
The following graphic shows the
Income/Sales
 collapsible section:
The transactions included on your 1099 DIOBs are based on registration codes and Trust Tax tax codes. The default is to include receipts or disbursements with the registration codes listed under the
Income/Sales
 collapsible section. If there are no entries in the grid under the
Income/Sales
 collapsible section but a transaction or capital sale has a registration code and the transaction or capital sale is posted to the applicable tax code, it will be reported on the applicable 1099.
Dividend, interest and foreign taxes paid transactions without registration codes are included or excluded from a 1099 based on the options set under the
1099Div/Int/B
 collapsible section.
To include or exclude receipts or disbursements:
  1. Select the
    DO NOT include recipiets/disbursements with these registration codes
     or
    ONLY include receipts/disbursements with these registration codes
     in the
    Income/Sales
     collapsible section.
  2. In the grid row that includes the text, "Please select here to add new row," enter the registration code in the
    Reg Code
     field.
  3. Select whether the registration code applies to income transactions, capital sales or both in the
    Invalid for
     or
    Valid for
     field.
  4. For identification purposes, assign a nominee name to each entry by entering the nominee name in the
    Nominee Name
     field.
  5. Select
    Save
    .

1099-MISC (1099Misc-R and 1099Misc-SP) and 1099-NEC Processing Options

On the Processing page, the
1099Misc-R
 and
1099Misc-SP
 collapsible sections are used to enter the TAV tax codes for miscellaneous income and nonemployee compensation. Although the IRS uses Form 1099-MISC to report both the receipt and disbursement of miscellaneous income, ONESOURCE Trust Tax makes a distinction between the two. In ONESOURCE Trust Tax, Form 1099Misc-R is used to report the receipt of miscellaneous income and Form 1099Misc-SP is used to report the disbursement of miscellaneous income.
The TAV tax codes entered in the grid under the
1099Misc-R
 collapsible section are used along with transaction type codes to validate qualified transactions for reporting on 1099Misc-R. For the
1099Misc-SP/NEC
 collapsible section:
  • The TAV tax codes entered in the
    Use transactions with these TAV disbursement tax codes on 1099-Misc Service Provider
     grid are used along with transaction type codes to validate qualified transactions for reporting on 1099Misc-SP.
  • Paid To
     or
    Paid For
     is used to identify the source of recipient information for disbursement transactions.
  • The TAV tax codes entered in the
    Use transactions with these TAV disbursement tax codes on 1099 NEC Service Providers
     grid determine nonemployee compensation transactions reported on Form 1099-NEC.

1099-R, 1099-Q, 5498 and 5498-ESA Processing Options

Under the
1099R/Q/5498/ESA
 collapsible section, you can control whether certain information is printed on Forms 1099-R, 1099-Q, 5498 and 5498-ESA. You can also identify how you want to control the source of recipient information for transactions reported on Forms 1099-R and 1099-Q.

1098 Processing Options

You can use the
1098
 collapsible section to include transactions on Form 1098 based on TAV tax codes or the minor asset type of the asset.

This article applies to:

  • PRODUCT: ONESOURCE Trust Tax