Presentation on theme: "1099 Tax Reporting Program Defense Finance & Accounting Service DFAS Tax Office August 2010."— Presentation transcript:
1099 Tax Reporting Program Defense Finance & Accounting Service DFAS Tax Office August 2010
General – Program Description What is the 1099 Tax Reporting Program (1099TRP) Application created to collect & report to the IRS payments made by DoD for “services”.
General – Convenience Checks IRS form 1099-Miscellaneous SANDY’S BAR & GRILL 222 SANDWICH BLVD SOMEWHERE WV 24946
General – Convenience Checks Transactions for services are payments made for work performed rather than purchase of goods.
General – Convenience Checks Examples of reportables –Dry cleaning of uniforms –Booth rentals for job fairs/recruiting –Maintenance fees –Instructor and speaker fees Examples of non-reportables –Goods/products –Payments to any government agency –Payments to Federal tax-exempt business
System Access User roles & permissions –Agency Program Coordinator (APC) Convenience Check Transaction Screen –Review –Add –Modify –Delete Convenience Check Report –View –Print
System Access User roles & permissions –Approving Official/Billing Official (AO) Convenience Check Transaction Screen –Review Convenience Check Report –View –Print Note: It is a conflict of interest to be able to approve payments & have the ability to manipulate payment data.
System Access Obtaining user id & password –Each person requesting access must complete DD form 2875 DD form 2869
System Access DD form 2875 (versions 2009) –APC, AO, or Checkwriter completes Type of Request, Date, System Name Part I, all blocks Part II, blocks 13 thru 20b –Your Security Manager completes Page 2, Part III, all blocks –Tax Office completes Location Part II, blocks 21 thru 25
System Access – DD form 2875
System Access DD form 2869 (version 2007) –APC, AO, or Checkwriter completes Section I, all blocks –APC completes Section II, all blocks –Tax Office completes Section III, all blocks
System Access – DD form 2869
Initial System Access Sun Java Plug-in –Must be loaded on PC –Allows user to view application –Message will appear if not loaded –Contact your LAN/Technical Office to load
Initial System Access Public Key Enabled (PKE) Registration w/Common Access Card (CAC) –Receive initial userid & password –Access the 1099TRP website –Required to register user id & password
Initial System Access Registering for PKE –Open web browser –Input 1099TRP web address.mil agencies: https://dfas4dod.dfas.mil/systems/1099t ps://dfas4dod.dfas.mil/systems/1099.edu agencies: https://dfas1099trp.csd.disa.mil –.mil receives 1099TRP Homepage;.edu does not –Click link, “Enter the 1099TRP here” –On PKE Screen enter userid & password –Click Register Button –Receive message, “Successful Registration”
Initial System Access- PKE Screen
Initial System Access After PKE Registration –Use CAC & CAC pin –No more user id & password –Must access Program at least once every 90 days to avoid being locked out
Initial System Access Steps to Sign into 1099TRP –Open web browser –Enter 1099TRP web address –Receive 1099TRP Homepage –Click link, “Enter the 1099TRP here” –Select digital certificate, click OK –Enter CAC pin, click OK –Program loads –Receive Warning screen, click OK
1099TRP Homepage Link to access the 1099TRP Convenience Check User’s Manual Informational messages DD Forms 2875 & 2869 GSA SmartPay Presentation What is & is not reportable IRS Charity Site Public/Private Colleges & Universities
System Overview Welcome screen –First screen of Program –Provides current status of the 1099TRP –Convenience Check Data entry point –Tool bar
System Overview- Welcome Screen
System Overview Convenience Check Entry Transaction Screen –All users are permitted access to this screen –Convenience check data entered here –Divided into 3 tabs Transaction Screen Merchant Screen Sole Proprietor Screen
System Overview – Transaction Screen
Category –Non-Employee Compensation Pay merchant/individual for services, not employee Most often used –Rents Pay to use a space or equipment –Medical & Heath Care Pay doctor, dentist, or hospital –Gross proceeds paid to an attorney Pay attorney for legal services
System Overview – Merchant Screen
Tax Identification Number (TIN) –Social Security Number (SSN) Individual or Sole Proprietor XXX-XX-XXXX Always 9-digits, no letters –Employer Identification Number (EIN) Merchant/Business XX-XXXXXXX Always 9-digits, no letters –Must match name registered on IRS records Important: Protect the TINs
System Overview – Sole Proprietor Sole Proprietor
System Overview – Sole Proprietor Sole business owner Owner and business names different William R Smith Bill’s Lawn Mowing Service Not partnership or corporation Usually small business Has SSN; rarely has an EIN
Check Report Convenience Check Report Request –Screen is accessed from Reports menu –All users have access to their authorized accounts
Check Report Convenience Check Report Request –Can be sorted by Check date TIN Merchant Name Month Year –Click Select box –Click Run button
Check Report Convenience Check Report Request ACCOUNT CONFUSED, DAZED A (Active ) CHECK # DATE AMOUNT TIN MERCHANT 1099 ISSUED? CATEGORY /25/ XXXXXXXXX VICKY’S GOWNS OF GLORY NO NONEMPLOYEE COMPENSATION 2468 DRESS AVE, BOWLING LANE, OH 43352
General – Purchase Card Do not input any purchase card data DFAS receives & reports it electronically
Updates PKE - no more passwords after initial registration Changes to reporting requirements Section 6041, Internal Revenue Code –2011 Banks issue tax forms for purchase card payments Decision pending on banks issuing tax forms for convenience checks –2012 Reporting requirements apply to goods & services
Web Addresses.mil or.gov web address https://dfas4dod.dfas.mil/systems/1099.edu web address https://dfas1099trp.csd.disa.mil
Address –Access issues –Access requests –General reporting questions –General Program questions Hey, us
Half-Way Point Nooo not yet. Are we done yet?
Good To Know Enter, Save, Add. Enter, Save, Add… Clear commands – Clear & Cancel Remove unwanted record - Delete, Save Find a record - Query Move backward or forward - Previous or Next Idle time 30 minutes – Oh, I’m knocked out & must log back in
Good To Know The tax year is Calendar Year, not Fiscal Year December 31 is the absolute, last day for inputting check data!! Or was it Decembe r 32?
Whose responsible for inputting & ensuring the convenience check data is reported correctly? You are Responsibilities
Responsibilities – All Privacy Act Information –TINs –Names & Addresses –Account Numbers Pssssst….secure it
Responsibilities - Checkwriter Obtain merchant info for tax reporting –Legal name & address –Tax Identification Number (TIN) Obtain check data –Check number –Date check was written –Check amount –Brief description of what was purchased Input merchant & check data at least monthly Review input for accuracy
Responsibilities - APC Ensure Checkwriter obtains merchant & check data Ensure check data is input at least monthly Review input for accuracy Input data in the absence of Checkwriter
Responsibilities - AO Ensure Checkwriter obtains merchant & check data Ensure check data is input at least monthly Review input for accuracy
Merchant data consistent? Merchant data free of misteaks? Sole Proprietor correctly identified? Check number correct? No duplicates? Dollar amount correct? No extra zeros? Only reportable data input Reportable data input for any $ amount ($600 threshold applies to the Tax Office) Data Review
What happens when the data is input incorrectly?
Data input incorrectly in 1099TRP APC, AO, & Checkwriter do not review data DFAS issues tax forms & reports data to IRS IRS audits merchantAngry merchant contacts DFAS
What happens when an angry merchant contacts us? You could be taken on a three-hour tour
Audits What happens when you are audited and you did not report your check data? You’ll be sorry
So what do I need for an Audit?
Audits APC & AO – List of Checkwriters – Account numbers – 1099TRP Convenience Check Report AO & Checkwriter – Receipts/invoices for transactions Checkwriter – Logbook, checkwriter, & Internal records – 1099TRP Convenience Check Report
Tax Office End-of-Year 2009
Tax Office - Contacts Vicky Waldron – Primary Sandy Major – Alternate Gayla Vincent – Program Manager https://dfas4dod.dfas.mil/systems/1099 https://dfas1099trp.csd.disa.mil fax number: DSN Contact me? Dy-no-mite!