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This article applies to:

  • Product: ONESOURCE Trust Tax

Reviewing Recipient Information

The information on the Recipient Detail page is used as the recipient information for 1099 DIOBs, 1099Misc-Rs (Receipts) and 5498s. Each year, you should review the recipient information for each recipient and make any necessary changes, including adding or deleting recipients.
During your review, verify that the information that was bridged or entered for each recipient is correct and complete. Most errors involve incomplete or incorrectly formatted information. Except for a missing, non-numeric or incorrectly formatted recipient SSN or EIN, the common errors listed below are bypassed when you process one or more accounts. Processing an account with an error, however, may result in an incomplete 1099 form.
note
If a recipient error exists and you do not correct the error before the account is processed then, when you file the 1099 with the IRS, the required information may not be reported to the IRS.
The following list includes the errors that prevent the recipient and the corresponding data from being filed with the IRS:
  • Recipient SSN/EIN is not numeric or is blank
  • Recipient SSN/EIN format is not ###-##-#### or ##-#######
  • Recipient name is missing
  • Recipient does not have a complete address (address, city and state)
  • Recipient has a foreign address and City, State, Zip code
  • Recipient zip code format is not ##### or #####-####
  • APO/FPO State code/Zip Code mismatch:
    • State code = AE and zip code is not 090xx-0989x
    • State code = AA and zip code is not 340xx
    • State code = AP and zip code is not 962xx-966xx
    • APO/FPO zip code and City is not 'APO' or 'FPO'
To review recipient information:
  1. Open the account that has the recipient you want to review.
  2. Select the
    Recipients
     main topic.
  3. Review the recipients listed in the grid under the
    Recipient Listing
     collapsible section to determine if each recipient is valid. Based on this high-level review, you may need to add or delete recipients.
  4. To add a recipient, enter the recipient information in the row below the grid heading, press TAB until you move off the row, then select
    Save
    .
  5. To delete a recipient, select Delete for the row that includes the recipient you want to delete. Select
    Save
    .
  6. Select the
    Name
     link for the recipient you want to review. The Recipient Detail page displays.
  7. Review the following under the
    Recipient Information
     collapsible section:
    • The
      Taxpayer ID
       field-This field cannot be empty. It must include the IRS-approved taxpayer ID for the recipient. IRS-approved taxpayer IDs include SSNs, EINs, ITINs and ATINs. If you have not received the recipient's taxpayer ID, you can enter APPLD FOR and FORM1042S so you can process the account.
    • An incomplete, non-numeric or incorrectly formatted SSN or EIN is a common error that can cause processing to stop. If the recipient has a SSN then the SSN must be in the format, ###-##-#### (where # represents a number). If the recipient has an EIN then the EIN must be in the format, ##-####### (where # represents a number).
    • The
      1099 Recipient Type
       drop-down list (if 1099 DIOB or 1099-MISC processing applies to the recipient)-Select whether the recipient is a legal beneficiary, a 1099 recipient only, a dummy beneficiary for 1099 reporting purposes only, or a legal beneficiary who receives a 1099 in addition to another type of tax return. Depending on your selection, ONESOURCE Trust Tax processes the account in one of the following ways:
      • For 1099 DIOB processing, if only one recipient is listed on the account and a 1099 percentage is not entered for the recipient, ONESOURCE Trust Tax assumes that the recipient is a 1099 recipient if
        Legal beneficiary
        ,
        1099 recipient only
        ,
        Dummy beneficiary for 1099 totaling
         or
        Legal beneficiary & 1099 recipient
         is selected. If more than one recipient is listed on the account, ONESOURCE Trust Tax assumes that the recipient is a 1099 recipient only if a 1099 percentage is entered for the recipient.
      • For Form 1041 processing, a Form 1041 is generated when
        Legal beneficiary
         or
        Legal beneficiary & 1099
         is selected.
      • A recipient who has
        Dummy beneficiary for 1099 totaling
         selected is used only to balance the total 1099 percentage for the account to 100 percent. A dummy beneficiary does not receive a printed 1099 form. The data associated with a dummy beneficiary is not submitted to the IRS.
    • The recipient's name, mailing address and resident state-The IRS requires separate identification of the recipient's name, address, city, state and postal code.
    • For a recipient with a U.S. address, review the
      Name
      ,
      Address
      ,
      City
      ,
      Country
      ,
      U.S. State
      ,
      U.S. Zip
       and
      Resident State
       fields. The
      Country
       field can be populated with
      UNITED STATES OF AMERICA
       or
      NO COUNTRY SELECTED
      .
    • For a recipient with a Canadian address, review the
      Name
      ,
      Address
      ,
      City
      ,
      Country
      ,
      Canadian Province
      ,
      Foreign Province
       and
      Foreign Postal Code
       fields. The
      Country
       field must display
      CANADA
       to enable the
      Canadian Province
      ,
      Foreign Province
       and
      Foreign Postal Code
       fields. The
      Canadian Province
       field allows you to select the province code if it is not bridged. The province name displays in the
      Foreign Province
       field.
    • For a recipient with a foreign address other than a Canadian address, review the
      Name
      ,
      Address
      ,
      City
      ,
      Country
      ,
      Foreign Province
       and
      Foreign Postal Code
       fields.
  9. Under the
    Distribution-Decimal/Dollar
     collapsible section, review the recipient's 1099 percentage in the
    1099 Distribution Percentage
     field. The 1099 percentage defaults to 100 percent if only one recipient is listed on the account.
  10. If you made changes, select
    Save
    .
  11. Select the
    Recipient Summary
     subtopic to display the Recipient Summary page.
  12. In the recipient grid under the
    Recipient Listing
     collapsible section, review the
    1099%
     column to verify that the total of all the 1099 percentages equals 100 percent. If you need to change the 1099 percentages, enter your changes in the
    1099%
     field for the recipient(s) then select
    Save
    .