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Form 1099

Setting Options

On the Options and Overrides page, the options in the
Enhanced 1099
 category (referred to as Enhanced 1099 options) control the way your information returns are generated. Enhanced 1099 options can be set at the SuperBank, PAN, bulk override and account override levels.
To set options for information returns:
  1. Select
    SETUP
    ,
    Options&Overrides
     then
    PAN Level
     or
    SuperBank Level
    .
  2. Set the following options in the
    Enhanced 1099
     category:
    Option
    Description
    Number of copies of recipient packages
    Select the number of recipient packages to print.
    Suppress print of diagnostic page on 1099s and 5498s printed locally or and bulk shipped
    Determines whether the Diagnostic page is suppressed for all 1099 and 5498 forms printed through bulk shipping. Select
    Yes
     suppresses the Diagnostic page. Select
    No
     to print the Diagnostic page.
    Mask Tax ID on documents received by recipient (e.g. XXX-XX-9999 or XX-XXX9999)
    Determines whether the recipient's SSN or EIN is printed on the 1099 returns sent to the recipient. The recipient's SSN or EIN can be masked for all pages, all pages except the 1099 form, all pages except on the 1099 form for California recipients, or all California recipients except on the 1099 form.
    Print of preparer or officer code with header information
    Determines whether the tax preparer code, trust administrator code, investment officer code or the account's sub-ID is printed in the header area of the 1099 form series.
    Suppress print of recipient package if there are no income, deductions and sales reported on Form 1099
    Determines whether a recipient package is generated when there is no income, deductions or sales reported on 1099 forms.
    Print Form 1040 line references on the tax summary
    Determines whether Form 1040 line references are printed on the Tax Summary page. The default selection is
    Yes
    .
    Select
    Yes
     to print Form 1040 line references. Select
    No
     to suppress Form 1040 line references.
    Summarize Municipal Interest from mutual fund or factored transactions, except for Trust Situs and recipient states
    Determines whether tax-exempt interest from municipal bond funds or factored transactions is summarized based on the account's situs state and recipient's resident state. When summarized, tax-exempt interest from states that are not the situs state or resident state is shown as one amount on the detail pages. Income is summarized on the tax return detail pages and the tax worksheet.
    Select
    Yes
     to summarize tax-exempt interest. Select
    No
     to detail tax-exempt interest.
    Summarize Municipal Interest from Common Trust Funds, except for Trust Situs and recipient states
    Determines whether municipal interest from common trust funds is summarized based on the account's situs state and the recipient's resident state. Municipal interest from all other states is shown as one amount on the detail pages.
    Select
    Yes
     to summarize municipal interest. Select
    No
     to detail municipal interest.
    Summarize Foreign Income from mutual fund or factored transactions
    Determines whether foreign income from mutual funds or factored transactions is summarized on the Foreign Investments page. Select
    Yes
     to summarize foreign income. Select
    No
     to detail foreign income.
    Presentation of Foreign Source Income
    Determines how foreign source income is printed. The default is to print country-by-country detail.
    Sort Capital Sales by sale date instead of description
    Determines whether capital sales are sorted by sale date or by description. Select
    Yes
     to sort capital sales by sale date. Select
    No
     to sort capital sales by description.
    Print 'Various' on 1099-B for acquired date when a sale has multiple tax lots (blank is reported to IRS)
    Determines whether the word, Various, is printed as the acquired date on Form 1099-B when a sale has multiple tax lots. Select
    Yes
     print the word, Various, as the acquired date.
    Suppress statement indicating that taxable out of state municipal income has been reported to the state (CA, CT, MA, MN, MT, NC, NY, RI)
    The state taxing authorities for California, Connecticut, Massachusetts, Minnesota, Montana, North Carolina, New York and Rhode Island require you to report out of state municipal interest (OSMI) for 1099 recipients who are residents of those states. If you are using ONESOURCE Trust Tax to file OSMI data to these states, select
    No
     to print the OSMI statement on the Contents page of the recipient package.
    Suppress print of the WHFIT Proceeds Written Statement (UIT WHFITs)
    Applies to the WSC Plus Package. It determines whether the additional written statement is printed for UITs that are treated for tax purposes as grantor trusts. Select
    Yes
     to suppress the additional written statement. Select
    No
     to print the additional written statement.
    Level of detail in supporting statements
    Determines the level of detail generated for supporting statements detailing income and deduction transactions. When transaction-level detail is generated, the explanation is limited to three lines.
    Prepare PDF files for preview or local print without the ONESOURCE Trust Tax security feature
    Determines whether the PDFs for the 1099 form series are generated without the security feature turned on. If your organization has a security policy in place, selecting
    Yes
     for this option allows you to encrypt or password protect PDF files, and to extract specific pages from the PDFs generated for preview and local print.
    Select
    Yes
     to generate the 1099 form series without the security feature turned on. Select
    No
     to generate the 1099 form series with the security feature turned on.
    Print a list of Sub Accounts as a footnote
    Applies to combined accounts. It determines whether a list of sub-accounts providing tax information is printed in the footnote area of the Tax Summary page. Select
    Yes
     to print a list of the sub-accounts. Select
    No
     to suppress the list of sub-accounts.
    Do not print the second line of the recipient name in the mailing address of a Copy to
    Determines whether the second line of the recipient name is suppressed on the Cover page for a copy-to package. Select
    Yes
     to suppress the second line of the recipient name. Select
    No
     to print the second line of the recipient name.
    Suppress print of the Royalty Trust Footnote
    Applies to the WSC Plus Package. It determines whether the royalty trust footnote is printed on the Tax Summary page. Select
    Yes
     to suppress the royalty trust footnote. Select
    No
     to print the royalty trust footnote.
    Suppress print of the account number
    Determines whether the account number is printed on the 1099 form series. Select
    Yes
     to suppress the account number. Select
    No
     to print the account number.
    Suppress 'EXPENSES' section of Tax Summary and related detail
    This option determines whether to print expenses that, beginning with tax year 2018, are no longer deductible on Form 1040, Schedule A. Select
    Yes
     to suppress printing expenses. Select
    No
     (the default) to print expenses.
    Enter the number of characters of the account number to display.
    This option allows you to mask the account number on 1099 forms. To mask all but the last four digits of the account number, select
    4
     from the
    Drop Down Value
     field.
    Report basis information for noncovered securities on 1099-B to the IRS (Premium service level only) (Basis for noncovered securities always prints in recipient packages)
    Applies to the Premium service level only. It determines whether basis information for noncovered securities is reported to the IRS. Select
    Yes
     to report basis information for noncovered securities to the IRS.
    Print 1099 Summary of Corrections
    Determines whether the Summary of Corrections page prints in the recipient's correction package for Forms 1099 DIOB. Select
    Yes
     (the default) to print the page.
    The Summary of Corrections page is available beginning in tax year 2020 for Forms 1099 DIOB only when the Premium 1099 service level is selected, this option is set to
    Yes
    , and a previously processed 1099 DIOB is frozen (the
    Keep
     check box is selected) by Mail Service, a 1099 filing submission, or manually by a user.
    The Summary of Corrections page 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.
    Prepare 1099s and 5498s with cents
    Determines whether the Combined Forms pages are prepared with cents. Select
    Yes
     to prepare the Combined Forms pages with cents. Select
    No
     to round the amounts to the nearest dollar amount on the Combined Forms pages.
    Bypass automated Qualified Dividend Income calculations
    Determines whether the qualified dividend income calculation is used. Select
    Yes
     to bypass the qualified dividend income calculation. Select
    No
     to use the qualified dividend income calculation.
    Evaluation of mutual fund or factored transactions in the Qualified Dividend Income calculation
    Determines how the qualified dividend income calculation evaluates mutual fund transactions or transactions factored to tax codes 3, 5, 6, 201 or 202. The selections include:
    • Perform all of the QDI calculations
      -Dividend income from an asset is treated as either qualified or nonqualified. The holding period test is performed. This test determines if the asset was sold within the holding period before or after the ex-dividend date.
    • Bypass all QDI calculations
      -Dividend income is treated as based on the tax code it is factored to, even if the asset is marked as nonqualified. All QDI checks, including the holding period test, are bypassed.
    • Bypass only the NQ asset flag check, still perform other QDI calculations
      -Dividend income is treated based on the tax code it is factored to, even if the asset is marked as nonqualified. The holding period test is performed. If the asset was sold and did not satisfy the holding period test, the income is reclassified as nonqualified dividends for that account.
    Show short term capital gain dividends (tax code 126) as qualified dividends
    Select
    Yes
     to consider short-term capital gain dividends posted or factored to tax code 126 as qualified dividends.
    Allocate expenses for Tax-exempt Income
    By default,
    Yes
     is selected for this option. When
    Yes
     is selected, allocated expenses are totaled in the Deduction section of the Tax Summary page and the expense break-down is reported in its associated detail. Allocated expenses are shown at gross if
    No
     is selected.
    Include gains in the TEI expense allocation
    Determines whether capital gains are included as taxable income when allocating expenses between taxable income and tax-exempt income.
    Include nondividend distributions (return of capital) in the TEI expense allocation
    Determines whether nondividend distributions (return of capital) are included in the tax-exempt income (TEI) expense allocation. Select
    Yes
     to include nondividend distributions in the TEI expense allocation. Select
    No
     to exclude nondividend distributions in the TEI expense allocation.
    Include nondistributive income in the TEI expense allocation (Option not applicable beginning with tax year 2019)
    This option is not applicable beginning with tax year 2019.
    This option determines whether nondistributive income is included in gross taxable income when expenses are allocated between taxable income and tax-exempt income.
    Select
    Yes
     to include nondistributive income in gross taxable income when expenses are allocated between taxable income and tax-exempt income.
    Generate Tax Summary statement and detail for accommodation "Payments/Receipts"
    Determines whether the Accommodation Payment section of the Tax Summary page and its associated detail is generated. Select
    Yes
     to generate the Accommodation Payment section.
    Suppress Paid To information from printing on the detailed accommodation statement
    Determines whether the paid-to information is suppressed on the detailed accommodation statement. Select
    Yes
     to suppress the paid-to information.
    Distribution-in-kind-use book value as distribution amount for accommodation statement or 1099-R
    For in-kind distributions, this option determines whether the book value or the sales price is used as the distribution amount on Form 1099-R or in the Accommodation Payment section of the Tax Summary page and its associated detail. Select
    Yes
     to use the book value as the distribution amount. Select
    No
     to use the sales price as the distribution amount.
    Automated Wash Sale Identification
    Determines whether wash sales are identified for 1099 reporting purposes. If you want to identify wash sales, you can identify them when processing a worksheet request, a tax return projection or worksheet request, or when processing any type of request from the Process page.
    Calculate Return of Capital Cost Basis Adjustment
    The default selection is
    Do not calculate return of capital basis adjustment from factors
    .
    Set this option to
    Calculate return of capital basis adjustment from factors
     to turn on the return of capital adjustment calculation. The calculation is made at the tax lot level for sales in the same tax year. The fund factor amount per share in tax code 4 (Nondividend distribution) is used to calculate the return of capital adjustment.
    A return of capital adjustment is calculated from the first day of the tax year or the acquisition date (whichever is later) through the sale's trade date based on the fund factor's ex-dividend date (if available). If the ex-dividend date is unavailable, the payment or record date is used. The units in each tax lot are multiplied by each tax code 4 factor within the date range.
    The following guidelines apply when the return of capital adjustment calculation is turned on:
    • The calculation is triggered by a processing request (for example, a worksheet, projection or tax return processing request).
    • The return of capital adjustment is not calculated if a tax lot is marked as
      Unknown Cost
       or
      Do Not Calc
      , has a missing acquisition date, or has no units.
    • Wash sale identification occurs after the return of capital adjustment is calculated.
    • For main and subaccounts, the calculation is made at the tax lot level in the individual subaccounts. The amount per share is applied to the units in the tax lot records for each sale.
    • Since the free receipt date is not available for free receipt tax lots, a further review may be required to determine if the return of capital adjustment should be limited to a portion of the tax year.
    Treat all out-of-state municipal income FACTORED transactions as tax-exempt (Applies to recipients in IN)
    Applies to Indiana recipients only. Select
    Yes
     to treat out-of-state municipal factored transactions as tax-exempt.
    Taxability of out-of-state municipal income UNFACTORED transactions (Applies to recipients in IN)
    Applies to Indiana recipients only. Select
    Yes
     to treat out-of-state municipal income unfactored transactions as tax-exempt.
    Suppress print of the Asset Holdings footnote (option applicable beginning with tax year 2021)
    This option applies beginning with tax year 2021. It applies to grantor and agency accounts, and to accounts generating 1099-DIV, 1099-INT, 1099-OID and 1099-B returns (collectively referred to as 1099 DIOB returns).
    Set this option to
    No
     (the default) to generate the asset holding footnote. The generated footnote lists the asset ID and asset name for any asset held by an account that is marked for inclusion in the footnote. To activate the footnote, you must:
    1. Ensure the
      Suppress print of the Asset Holdings footnote
       Beneficiary and Enhanced 1099 options are set to
      No
      .
    2. Create a custom register from any base asset register that has the
      Asset Master Information
       category available.
    3. Add the
      Include in Asset Holdings Footnote
       field to the custom register.
    4. Run the custom register.
    5. Set the
      Include in Asset Holdings Footnote
       field to
      Yes
       for each asset that should be considered for inclusion in the footnote listing. Suggested assets to mark include partnerships and other holdings where the recipient or beneficiary may receive tax information under separate cover.
    6. Select
      Save
       to save your changes.
    Suppress print of the Asset Holdings footnote (option applicable beginning with tax year 2021)
     Continued
    ONESOURCE Trust Tax determines whether an asset is included in the asset holdings footnote when the return is processed. When the return is processed, ONESOURCE Trust Tax analyzes the following to determine whether the account holds an asset when the asset flag is set to
    Yes
    :
    • Transactions associated with the asset (includes tax code 999).
    • Sales associated with the asset.
    • Activity records (for example, K-1 activities) associated with the asset.
    • Whether an asset's units are greater than zero for the year-end position record (record 3Q) for the asset.
    • To determine the 3Q records bridged for your accounts and the position of assets as of year end, review the
      Year End Position Information
       register.
    • ONESOURCE Trust Tax loads all 3Q records sent from trust accounting vendors (TAVs). Contact your TAV if you want additional position records included in your bridge files (some TAVs may send records for only WSC Plus assets).
    To activate the footnote for assets that have no activity for the year, consider creating transactions in tax code 999 or adding an activity record (for example, adding a K-1 activity using the K-1 Input page).
    Contact name & phone number to be printed in 1099 recipient package
    Name
    Telephone Number
    Extension
    Use the
    Contact name & phone number to be printed in 1099 recipient packet
     option to select whether you want to print contact information on your recipient packages. If you select
    Use name and telephone number entered below
    , enter the contact information to print in the
    Name
    ,
    Telephone Number
     and
    Extension
     options.
  3. Select
    Save
    .

This article applies to:

  • PRODUCT: ONESOURCE Trust Tax