DCL-02-22, 1099 Request

DCL-02-22

August 16, 2002

TO:ALL STATE IV-D DIRECTORS

RE:1099 Request

Dear Colleague:

The Federal Case Registry (FCR)/Project 1099 annually requires states to submit certifications of compliance with safeguard and security requirements relating to locate information received from the FCR/1099. A form for this purpose is enclosed.

Requirements for the safeguarding of 1099 data are contained in the IRS publication: Safeguarding for Protecting Federal Tax Returns & Return Information (1075), which is located at: http://www.irs.gov/pub/irs-pdf/p1075.pdf.

Annual Certification – Before the FPLS can accept any new 1099 requests made after September 30, 2002, a state must send to the FPLS a completed form, Annual Certification to Request Information from Forms 1099 on the Wage and Information Document Master File for Project 1099. The form is attached. A description of the form and its use can be found in the FCR Interface Guidance Document, Section 9.6.3. The annual certification is an IRS security/safeguarding requirement. To expedite the processing of your request, the form may be faxed to Joan O’Connor at (202) 401-5647.

Legacy FPLS - The FPLS no longer processes state 1099 requests submitted via the legacy FPLS. All 1099 requests must be made via FCR transactions.

Increased Cost of 1099 Requests - 1099 operations were suspended last year as a result of escalating IRS costs for 1099 processing. In light of the benefits to be obtained from the National Directory of New Hires (NDNH) proactive matching and the Financial Institution Data Match (FIDM), states should re-evaluate their continuing need to obtain 1099 information and, if appropriate, revise the criteria they use to select cases for 1099 requests. Additionally, 1099 information is generally stale upon arrival, given the normal delays in the 1099 reporting process. The Federal Office of Child Support Enforcement (OCSE) strongly suggests that cases not be submitted for 1099 matching until NDNH and FIDM matching have been conducted and any hits received are reviewed for action. OCSE will continue to analyze the costs and benefits of the 1099 data; we look forward to discussions with states about their value and continued use.

Your cooperation in this matter is greatly appreciated. If you have any questions, please contact George Laufert at (202) 205-3605 or email at glaufert@acf.hhs.gov.

Sincerely,

Sherri Z. Heller, Ed.D.

Commissioner
Office of Child Support Enforcement

Attachment: Federal Case Registry (FCR)/Project 1099 Certifications of Compliance Form (Adobe PDF)

cc:
Regional Program Managers
ACF Regional Administrators
1099 Contacts