1. Government Convenience Checks & 1099 Tax Reporting Program (1099TRP)
Amanda Kiss DFAS Tax Office Defense Finance & Accounting Service July 29 – July 31, 2014
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2. Agenda Convenience Check Payments and Taxes
1099 Tax Reporting Program (1099TRP)
Responsibilities
Obtaining Access
Navigating the Program
Reporting
Checklist
Challenges
Scenarios
Contact Information

3. Convenience Check Payments and Taxes
What does convenience check payments have to do with taxes?
IRS Form 1099-Miscellaneous reported to the Internal Review Service (IRS)
IRS matches the data on the 1099 to the recipient’s tax return to ensure income is reported
IRS requirement to report income under certain regulations for examples: Rent, Royalty, Services, and Medical Payments

4. 1099 Tax Reporting Program (1099TRP)?
What is the 1099TRP and why use it?
An on-line, secure database used to capture DoD check payment information for reporting to the Internal Revenue Service (IRS)
Available 24 hours a day, 7 days a week
Simplifies reporting check information and issuing tax forms
Offers report of information entered and the 1099 tax forms issued
Electronic reporting to the IRS
Provides audit trail

5. Responsibilities of the APC
Agency Program Coordinator (APC/AOPC)
Access required
Log in at least once every 30 days
Ensures all checkwriters:
Have access
Account information is up-to-date
Enter the check information at least monthly
Enter accurate information
Enter the information by December 31st
Report check information in absence of checkwriter
Maintain audit documentation to include
List of all checkwriters/account numbers
All backup documentation
Secure Privacy Act Information

6. Responsibilities of the AO
Billing Official or Approving Official
Access is optional
Log in at least once every 30 days
Review check information reported by all assigned checkwriters
Duties defined by the APC
Maintain audit documentation to include
Payment approval and backup documents
Secure Privacy Act Information

7. Responsibilities of the Checkwriter
Account Holder or Checkwriter
Access required
Log in at least once every 30 days
Obtain vendor’s tax information before paying
Request vendor complete IRS Form W-9
Must enter reportable check information at least monthly
If required, modify or delete check information
Ensures all reportable information is entered by December 31st
Maintain documents for audit purposes to include
Checkbook or logbook
Transaction receipts, invoices, and backup documents
Convenience Check Report
Ensure Privacy Act Information is secure

8. Responsibilities of the Tax Office
DFAS Tax Office
Reviews and processes system access requests
Makes changes to user access and account data
Answers questions regarding check information reporting
Issue IRS Forms 1099-Miscellaneous to vendors and individuals
Electronically report the tax forms to the IRS
Provides customer service to 1099 recipients
Issue corrections to tax forms
Two s sent from to applicant from
One contains User ID. Other contains password and additional information to assist in using the Program.

9. Obtaining Access Applicant completes and signs
System Authorization Access Request (DD FM 2875, v. 2009)
DFAS 1099TRP Access Request (DD FM 2869, v. 2007)
Rules of Behavior Form
Applicant with address ending in .edu must complete a White List Questionnaire
Not required if access routes through a .mil address
All blank forms are posted at
.Edu applicants may request forms and
questionnaire from

10. Obtaining Access – DD Form 2875
Applicant completes
Type of Request
Date
System Name
Part I
Supervisor completes
Part II, 13-20b
Tax Office completes Part II, 21-25
Applicant’s Security Manager completes Page 2, Part III, 28-32
Electronic signatures preferred

11. Obtaining Access – DD Form 2869
Applicant completes Section I, 1-13b
APC completes Section II, 15-19
Tax Office completes Section III, 20-22
Electronic signatures preferred

12. Obtaining Access
Applicant with address ending in .edu completes 3, 4, & 6 under Response column

13. Navigating the Program
1099TRP Users with .mil/.gov addresses
1099TRP Users with .edu addresses
Use the appropriate site to access the 1099TRP
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14. Navigating the Program
Homepage
Notifications
Link to enter Program
Access Forms
User’s Manual
Reporting info
GSA presentation
More…
Note: Users with .edu addresses cannot see the Homepage
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15. Navigating the Program
PKE Registration screen
Enter userid & password
Click Register button

16. Navigating the Program
Toolbar commands
SAVE then ADD saves the current record. It opens a blank template for entering the next record
QUERY then QUERY again opens previously entered records
CANCEL then CLEAR removes entered keystrokes
DELETE then SAVE permanently removes a record
FIRST, PREVIOUS, NEXT, or LAST arrows to specific record
TOTAL displays the number of records entered for an account

17. Navigating the Program
Select Convenience Check Entry to open Convenience Check Transaction screen to enter check data
Hint Text provides field info, i.e. date formats
Record shows current record #/total # of records

18. Navigating the Program
Payment Year & Account Number auto-fill

19. Navigating the Program
Click dropdown button to select the category for the type of payment

20. Navigating the Program
Taxpayer ID #
SSN or EIN
Nine numbers
Legal Name
Name registered with IRS
DBA Name
Optional
Auto-fills with Legal Name

21. Navigating the Program
State field dropdown box
50 States & District of Columbia
Military, AE, AP, or AA
U.S. territories
Do not include foreign addresses
Zip Ext & Phone # optional

22. Navigating the Program
Check written to U.S. vendor or individual residing at a foreign address
Contact the DFAS Tax Office
Tax Office provides a spreadsheet template
Enter vendor information and the check information on the spreadsheet
Provide the spreadsheet to the Tax Office
password protected spreadsheet to
Send password in separate

23. Navigating the Program
Input data
Click SAVE
Click ADD to open blank template to enter next check

24. Navigating the Program
Click Reports
Click Convenience Check Report
Click Select box
Click Run Convenience Check Report button

25. Navigating the Program
Convenience Check Report opens as an Adobe (.pdf) document

26. Navigating the Program
Click Report
Click Request Misc Reports
Click Run User Access Report button
Report opens as an Adobe (.pdf) document

27. Reporting Report checks written for: Services Rents
Medical and health care
Gross proceeds to an attorney in connection with legal services (regardless of whether the services are performed for the payer)

28. Reporting Do NOT report checks written for or to
Any government agency or anything owned or funded by a government agency
Tax exempt agencies/organizations: Red Cross, Veterans of Foreign Wars (VFW)
Payments to DoD employees or service members
Military Funeral Stipend to the family or honor guard
Products or goods: flags, stamps, postage, food
Bank fee for checks
Utilities: electric, gas, water, telephone, cable, internet
Small package transport services: Fed Ex, UPS, DLS
Storage: safety deposit box, warehouse
Subscriptions: magazine, newspaper

29. Checklist APC, AO, and Checkwriter must
Generate and review convenience check report
Is the check information reportable by guidelines?
Is the correct information entered?
Is information entered for the same merchant identical?
Is information entered spelled correctly?
Was all required check information input by December 31st?

30. Challenges Top 10 Challenges
Not keeping the Tax Office informed of user or account changes
APC not keeping checkwriters informed
Agency unprepared for audits
Waiting until December 31st to enter 12 months of data
Expecting the Tax Office to enter the check information
Only reporting checks written for $600 and above
Reporting everything including goods/merchandise
Not getting vendor’s information before paying them
Not reviewing the entered information
After entering a check, not clicking SAVE and then ADD before entering the next check

31. Scenarios
I wrote a check and gave it to the vendor in December I entered the check information into the 1099TRP in December. The vendor lost the check and did not notify me until January What do I do?
Cancel the original check
Write the new check and give it to the vendor
Advise the vendor the original check was reported in 2013 to the Internal Review Service
Do not enter the new check information in the 1099TRP for 2014
Annotate the event history in your check log for audit readiness
Recommend monitoring your checkbook to ensure the original check is not cashed.

32. Scenarios
I wrote a check and gave it to the vendor in December The vendor did not cash the check until January Should I have entered the check information in the 1099TRP in December 2013 or in January 2014?
You should have entered the check information in December The check information is entered when it is written to the vendor; not when they cash it.
If the check is not being given to the vendor until January, do not write the check until January. Then report the check information in January.

33. Scenarios
I wrote a check and gave it to the vendor in June The vendor lost the check in July. I reissued the check to the vendor in August. What information do I enter in the 1099TRP?
If the June check information was entered into the 1099TRP, modify the data to show the August reissued check information.
If the June check information was not entered into the 1099TRP, only report the August reissued check information in the 1099TRP.

34. Scenarios
I wrote a check for $ to pay an individual (not a federal employee) for child care and reimbursement for hotel, mileage, and per diem. What do I enter into the 1099TRP?
Child care………………….$115.50
Hotel reimbursement……$170.94
Mileage…………………….$247.86
Per Diem…………………..$
Report the total amount. This is considered paying a
vendor. The individual will deduct their expenses on
their personal tax return.

35. Scenarios
I wrote a check for $750 to a federal firefighter to reimburse them for their equipment. Do I enter the information in the 1099TRP?
No, do not enter the information in the 1099TRP. It is a reimbursement to a federal employee for their standard equipment. You are reimbursing an employee as opposed to paying an individual or vendor.

36. Integrity - Service - Innovation
Scenarios
My Agency did not enter any of the vendors’ check information in the 1099TRP or report it to the Internal Review Service (IRS). What do I do?
Call us to discuss what to report
Obtain IRS Forms 1099-Miscellaneous and an IRS Form 1096, Transmittal Form from the IRS or purchase them from an office supply store
Read instructions, complete Forms 1099-Miscellaneous
Read instructions, complete Form 1096
Mail the vendor the 1099-Miscellaneous recipient copy
Mail the IRS their copy and the original Form 1096
Keep a copy for your records
Annotate the mailing date in your records
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37. Contact Information
Amanda Kiss, primary POC
; DSN
Fax: ; DSN
Sandy Major, alternate
; DSN
Gayla Vincent, Program Manager
; DSN
Website addresses
.mil/.gov users:
.edu users:

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The End
QUESTIONS?
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