Retrieval of Information on Absent Parents from Forms 1099 by the IRS
AT-87-12
ACTION TRANSMITTAL
OCSE-AT-87-12
January 6, 1988
TO:State Agencies Administering Child Support Enforcement Plans approved Under Title IV-D of the Social Security Act and Other Interested Individuals
SUBJECT: Retrieval of address information on absent parents from Forms 1099 on the Wage and Information Document Master File by the Internal Revenue Service (IRS)
ATTACHMENT:Instructions for submitting requests and processing responses for Project 1099
BACKGROUND:In October 1984, an Agreement was signed between The Internal Revenue Service and the Office of Child Support Enforcement (OCSE). The agreement covers the matching of names and social security numbers received from OCSE with Forms 1099 on the Wage and Information Document Master File at IRS.
SUPERSEDED MATERIAL : OCSE-AT-85-05, dated May 30, 1985
INQUIRIES TO: OCSE Special Collections Unit
PROJECT 1099
Project 1099 is a cooperative effort involving the State IV-D Agency, the Federal Office of Child Support Enforcement (OCSE), and the Internal Revenue Service (IRS). This project has been initiated by OCSE with IRS to further improve and expand location information available to State Child Support Enforcement Agencies. 1099 forms are submitted to the IRS by certain financial institutions and State agencies for the purpose of reporting of payments, of a wide variety, made to the individual. The 1099 address information is current and accurate. Address information which will be provided includes:
1)The address which the absent parent reports to the institution submitting the 1099 information to IRS; and
2)The address of the submitting institution, i.e., banks, brokerage houses, State unemployment agencies.
If there is a match at IRS on the 1099 Master File, in addition to the address information, States will receive accompanying asset information. The following is a description of the responsibilities of the agencies involved, the major processing steps that are to take place, and the dates on which they must be performed.
I. Eligible Cases: Submitting Certified Requests
Requests for 1099 location information may be made only for cases in which the IV-D agency has previously requested address information from IRS but still is unable to locate the individual. Further, the confidentiality of information obtained through Project 1099 must be strictly maintained. Therefore States must certify (see Exhibit A) that they have established a security system that complies with and satisfies the safeguard requirements
of the Internal Revenue Code Section 6103 (p)(4). Signed certifications are required every quarter cases are submitted.
To request address information from the IRS Wage and Information Document Master File, States must submit the social security number (SSN) and name of the absent parent to OCSE. Submittal must be made either on magnetic tape, or via a personal computer. (See Exhibit F for instructions). States can use a combination of these two submittal formats within the same quarter and from quarter to quarter. Submittals within the same quarter from both a magnetic tape and the personal computer will be treated as a single submission in that the State will receive one cumulative response. Other recommended information to be submitted includes local code, case number, court/administrative order indicator and AFDC indicator. States are instructed to combine all local requests into one consolidated file on magnetic tape and send it to OCSE with a completed certification. Intrastate duplicate cases will not be accepted by OCSE. The first case submitted willbe accepted and all others will be rejected. Duplicate cases from different States, of course, will be accepted. Detailed tape instructions and specifications are contained in Exhibit B.
II. Submission Date
IRS processes an extract match against the 1099 Master File quarterly. That is, IRS takes our list of SSN's and runs it against their 1099 file noting which numbers have 1099 information on file. Therefore, OCSE and State IV-D Agency scheduling must coincide with the timetable established by IRS. Even though IRS processes quarterly, because of the nature of the 1099 Master File update cycle, it is not necessary for States to submit the same cases each quarter. The IRS 1099 Master File is completely updated once each year with a subsequent partial update at the mid-year point. Below are the quarterly submittal dates for States to send OCSE their requests, with an indication of those quarters which contain updated information.
*February 18 (Partial IRS update) fiscal year, quarter 2
May 13 fiscal year, quarter 3
**August 19 (Total IRS update) fiscal year, quarter 4
November 11 fiscal year, quarter 1
The August 19 quarterly submittal date will contain the completely updated master file, with the semi-annual update performed in time for the February 18 submittal date. In short, the State will receive the most current information by submitting case requests every other quarter; two consecutive submissions of the same cases should only produce redundant address information. That is, the master file of the May quarterly run contains essentially the same information as the February run and likewise, the November file is identical to the August file.
III. 1099 Processing Cycle and Reporting
OCSE will provide explanatory reports on the project's operations with sufficient information to allow the State Agency to take appropriate action. Most State reports will be sorted by local code and social security number.
The 1099 processing cycle begins with the receipt of State Agency request submittals by OCSE and the subsequent initial edit validation run. OCSE will process the submittal tapes and personal computer submittals, rejecting those cases with invalid SSN's and names. Duplicate cases will be rejected and listed on a separate report in SSN order. An Error and Statistics report will be produced and mailed to the State. OCSE will analyze the edit results and make the final decision as to what corrective actions, if any, will be taken. Possible actions include:
149Tape returned to State for correction and resubmittal (if time permits), or
149 Errors corrected by OCSE, or
149 Errors rejected (not correctable).
Once the OCSE edit is accomplished and time permitting, modifications or corrections to State errors have been completed, a single tape containing all State requests will be forwarded to IRS for matching against the Forms 1099 Wage and Information Document Master File.
The next step involves the processing of the IRS response tape by OCSE before the results are returned to the States. The IRS response tape, for cases on which there is a match, contains the following information:
-Payee's (absent parent) SSN, name and address;
-Payee's account number;
-Payer's EIN (employer identification number), name and address;
-Document code, and amount indicator (document code and amount indicator refer to the origin and nature of the asset);
-Amount of asset.
Asset information, as found on the 1099 file, is categorized by source of assets into "document codes" and "amount indicators." (See Exhibit D for the code form identifying the code numbers, and following narrative for explanation of the various forms reported).
Three reports are produced by OCSE at this point and issued to the State:
1) request records with response at IRS, i.e., SSN's that matched
2) SSN not on file at IRS - i.e. no match on 1099 file
3)request records which did match at IRS but are not returned to the State because the State absent parent name does not agree with the IRS name
Additionally, OCSE will issue a statistical report for each State with response records categorized by document codes and amount indicators.
IV. Verification and Disclosure of Information
Section 6103(1)(6) of the Internal Revenue Code permits the IRS to disclose return information to Federal, State and local child support enforcement agencies for the purpose of establishing and collecting support obligations and locating individuals owing support obligations. The child support enforcement agency may not disclose Federal return information to third parties or in litigation relating to establishing or collecting child
support obligations. However, if the information is verified by an independent source, the information from the other source may be disclosed.
1099 REPORTS
The following is a narrative description of the major reports. The first two reports will be issued to the States approximately two weeks after the quarterly submittal deadline. On the next page you will find the format options available for receipt of Reports #3 - #5. Please select your preference and include with your initial submittal.
1.Intrastate Duplicate Case Report - This report will contain all duplicate social security numbers submitted by the State, sorted by SSN only. All duplicates are rejected. In the event that an SSN matches at IRS and was submitted by multiple jurisdictions within a State, the State can refer to the duplicate report to determine what other jurisdictions requested locate information. HARD COPY ONLY
2.Error and Statistics Report - This report will reflect the processing of State submittals by OCSE. It will tell the State which cases were rejected and for what reasons, and give a total count of cases accepted and forwarded to IRS. The report provides individual error messages, and summary statistics. HARD COPY ONLY
The following reports are issued after the IRS processing.
3.Request Records with Response at IRS - This report will contain all SSN submittals that matched on the IRS 1099 file. (See Exhibit C for tape specifications for tape of records and tape of reports.)
4.SSN Not on File at IRS - This report will contain all SSN's (sorted by local code and SSN) sent to IRS that did not match on the 1099 file.
5.State Absent Parent Name Does Not Agree with IRS Name - This report contains matched cases at IRS on SSN, but where the IRS name will not be given to you. However, any SSN that appears on this report did match. Therefore, efforts to establish the correct (i.e. IRS) name would be fruitful.
6.State Statistical Report - This report shows the number of records that matched and were returned to the State (Report #3 above), categorized by document codes and amount indicators. HARD COPY ONLY
7.Interstate Duplicate Report - This report indicates those cases that have been submitted by other States during the current processing cycle. HARD COPY ONLY
4.
Exhibit A
Transmittal Certification
TO: Office of Child Support Enforcement
Family Support Administration
Department of Health and Human Services
330 C Street, S.W. Suite 2512
Washington, D.C. 20201
FROM: Name, title and jurisdiction
(State IV-D Director or designee)
SUBJECT:Request for address information from Forms 1099 on the Wage and Information Document Master File for Project 1099.
I certify that the return information received is needed for the purpose of, and will be used only to the extent necessary in, establishing and collecting child support obligations pursuant to Part D, Title IV of the Social Security Act. None of the information so obtained will be disclosed to third parties or in litigation relating to the collection or establishment of child support obligations. The information sought is not reasonably available from any other source. The cases contained in this submittal have been previously submitted for location request but any address information returned did not lead to location of the individual.
In order to comply with the safeguarding requirements of Internal Revenue Code Section 6103(p)(4), we agree to:
(1)establish and maintain a permanent system of standardized records with regard to all requests made for return information, the reason for such requests, the date the requests are made and the return information received, and the name of the employee(s) having access to the information;
(2)store the return information during non-duty hours or when not in use, in a locked container in a specifically designated place;
(3)limit access to file keys and safe combinations to the agency official responsible for safeguarding the return information and a maximum of two alternates who may permit access to the return information in the absence of such official;
(4)restrict access to the return information to those agency employees who are authorized to inspect and use the information;
(5)maintain the return information obtained from IRSseparate from agency case files;
(6) assure that mail received from IRS containing return
information is not opened prior to delivery to the agency official responsible for safeguarding the information;
(7)transmit return information between agency offices in double sealed envelopes to be opened by addressee only;
(8)upon completion of the use of return information, IRS information will be (insert statement as to whether the information will be returned to IRS or destroyed -- if to be destroyed, also state the method of destruction);
(9)if requested, furnish a report which (a) describes the procedures established and used for ensuring the confidentiality of the return information requested and received and (b) identifies what return information has been disposed of and the date and manner of disposal.
(10)the supervisory officials authorized to request return information under this procedure are (insert names and titles of authorized agency officials). The official responsible for safeguarding the return information is (insert the name and title of one official only).
____________________________________
(name, title and signature of the
head of the IV-D agency or designee)
Total number of requests__________________
Tape #____________________________________
Agency Contact____________________________
Phone Number______________________________
1099 REPORT OPTIONS (Please Check One)
Hard Copy_________________________________
Tape______________________________________
Exhibit B
Project 1099
State Submission Tape and Data Specifications
Tape Submission Requirements
All magnetic tapes submitted by States to OCSE for certification to IRS for Project 1099 should conform to the following specifications:
1. Media Heavy duty MYLAR magnetic data tape
2. Configuration IBM 9-track odd parity
3. Recording Density1600 or 6250 BPI
4. Labels (header, trailer) Non-Label
5. Record Size 80 characters (fixed)
6. Records Per Block 100
7. Data Code EBCDIC
Data Requirements
The minimum data elements which OCSE and IRS must have in order to match a tax return with a certification record are:
149 Social Security Number
149 Absent parent name
In addition to the above requirements, the following data elements are optional for accounting and special processing:
149 Local Code 149 AFDC Indicator
149 Case-number 149 Court or Administrative order
Indicator
Exhibit B
1099 State Input Data Record Specifications
All data records are required to be in the following format.
# of
Field name Characters Position Type Criteria
SSN 9 1-9 NumericMust be within range, must be 9 position numeric codes where the first 3 positions meet the following conditions:
- not equal to '000'
- not falling within the range of '626' to '700'
- not greater than '728'
REQUIRED
LOCATE CODE 3 10-12 Numeric Numeric or blank
FIPS code
NAME 35 13-47
LAST Alpha Must not be
blank, must be
followed by a
comma(,)
REQUIRED
FIRST Alpha A blank space
must exist
between the first
name and middle
initial
MIDDLE INITIAL Alpha
8.
Exhibit B
AFDC INDICATOR 1 48 Alpha "A" or "N" or blank; A = AFDC, N = Non-AFDC
CASE ID NUMBER 14 49-62 Alphanumeric
COURT/ADMINISTRATIVE
ORDER INDIC. 1 63 Alpha "Y" or "N" or blank; Y = Court or Administrative
order, N = No
Court or Administrative
order
FILLER 4 64-80 Blank
9.
Exhibit C
1099 TAPE VOLUME SPECIFICATIONS
FILE CHARACTERISTICS
Configuration 9 Track, Odd Parity
Character Code EBCDIC
Recording density 6250 BPI
Volume Labels None
File Labels None
Record Size 483 Characters
Blocking Factor 66 Record per block
Block Size 31878 Characters
RECORD FORMAT
START
POSITION LENGTH DESCRIPTION
1 9 SSN
10 3 Local Code
13 35 Name from State
48 14 Case Identification Number
62 1 Court/Administrative Order Indicator
63 1 AFDC Indicator
64 40 Payee Line 1
104 40 Payee Line 2
144 40 Payee Line 3
184 40 Payee Line 4
224 2 State Code
226 5 Zip Code
231 9 Payer EIN
240 40 Payer Line 1
280 40 Payer Line 2
320 40 Payer Line 3
360 40 Payer Line 4
400 2 Tax Year
402 10 Payer Account Number
412 2 Document Code
414 2 Amount Indicator 1
416 12 Amount 1
428 2 Amount Indicator 2
430 12 Amount 2
442 2 Amount Indicator 3
444 12 Amount 3
456 2 Amount Indicator 4
458 12 Amount 4
470 2 Amount Indicator 5
472 12 Amount 5
Block Size = Rec Length X Block Factor
Exhibit C
Payee Name & Address Information
Part 1 - The payee's name as shown on the 1099 form.
Part 2 - The second name of a person or first line of address shown on the 1099, such as "in care of". Could be blank.
Part 3 - Street Address or Post Office Box Number or other Address furnished by the 1099. Could be blank.
Part 4 - City, State and Zip code supplied by the 1099.
Part 5 - State supplied by the 1099. Could be blank.
Part 6 - Zip code used by the postal service. The five digits could be all zeros.
Payer Name & Address Information
Part 1 - The payer's name as shown on the 1099 form.
Part 2 - The first line of street address or post office box number of payer as shown on the 1099 form. Could be blank.
Part 3 - The second line of the payer's street address as shown on the 1099 form. Could be blank.
Part 4 - City, State and Zip code supplied by the 1099.
File Characteristics for Tape of Report
Configuration 9 track, odd parity
Character code EBCDIC
Vote Recording density 6250 BPI
Volume labels none
File Labels none
Record Format FBA
Record size 133
Blocking factor 10 records per block
Block size 1330 characters
Exhibit D
This listing is the IRS 1099 form identifying the various sources of assets. Each asset record is categorized by "document code" and "amount indicator". The document code will be found in positions 412 and 413 of the record. Each document code will be further differentiated by amount indicators starting in position 414. For example, if the number in position 412-413 (document code) was 91 and the number in position 414 (amount indicator) was 24, the source of asset would be "nontaxable distribution". There can be up to five (5) amount indicators for one (1) document code. There will always be at least one amount indicator for each document code.
1099 Document Code Definitions
Amt.
Form (Doc Code) Ind Income Type
5498 (28) 58 TY85 IRA/self employment
participation Contributions
59 Rollover
60 TY84 IRA/self employment
participation Contributions
67 Life Insurance (amount of IRA
paid to life insurance)
W-2G (32)Statement for Certain Gambling winnings. Used to report gambling winnings and any taxes withheld.
03 Gross Winnings
08 Tax withheld (negative amount)
21 Winnings form Identical Wager
Casino CTR (61) 72 Amount of Transaction
8300 (64) Trade or business transaction in which person receives $10,000 or more in cash.
72 Amount of Transaction
K-1 1065 (65) Partner's share of Income, credits, Deductions, Etc. Used to show partner's computations.
01 Dividends
02 Interest
08 Tax Withheld (negative amount)
51 Distributive Share
K-1 1041 (66) Beneficiary's share of income Deductions, Credits, Etc. Used to report each beneficiary's share of income, deductions, credits, and items of preference from an estate or trust.
01 Dividends
02 Interest
08 Tax Withheld (negative amount)
51 Distributive Share
K-1 1120S (67)Shareholders Share of Undistributed Taxable Income, Etc. Used to show small business corporation shareholder`s computations.
01 Dividends
02 Interest
08 Tax Withheld
51 Distributive Share
1099-B (79)Statement for Receipts of Proceeds from Broker and Barter Exchange Transactions. Used to report sales or redemptions of securities, future transactions, commodities and bartering exchange transactions.
08 Tax Withheld
61 Stocks & Bonds
62 Bartering
63 Aggregate Profit & Loss
64 Realized Profit & loss 86
65 Unrealized Profit & loss 85
66 Unrealized Profit & loss 86
1099-A (80)Forgiveness of debt. Reportable as income even though no money was actually earned.
69 Debt outstanding
70 Debt satisfied
71 Fair Market Value
1098 (81)Mortgage Interest Statement to report mortgage interest of $600 or more received by institution during the yearfrom an individual.
32Real Estate Taxes or Insurance Paid, etc.
68 Mortgage Interest
SA-1099 (82)Social Security Benefit Statement. Used to report payments received from the Social Security Administration.
04 Pensions and Annuities
08 Tax Withheld
78 Repayments (negative amt.)
79 Workman's Compensation Offset
(negative amt.)
82 TY82 Payments
83 TY83 Payments
84 TY84 Payments
85 TY85 Payments
86 TY86 Payments
87 TY87 Payments
1099-G (86)Statement for Recipients of Certain Government Payments. Used to report unemployment compensation, state and local income tax refunds, agricultural payments, taxable grants, and discharge of indebtedness.
08 Tax Withheld
13 Taxable Grant
14 Unemployment Compensation
54 Agricultural Subsidies
55 Prior Year Refund
56 Discharge of Indebtedness
1099-DIV (91)Statement for Recipients of Dividends and Distributions. Used to report distributions of dividends, capital gains, non-taxable distributions paid on stock.
01 Dividends
08 Tax Withheld
23 Capital Gains
24 Nontaxable Distribution
25 Div Qualifying for Exclusion
26 Div Not Qualifying for Exclusion
27 Cash Liquid Distributions
28 Non-Cash Liquid Distributions
Dividends not qualifying for exclusion
29 Foreign Tax Credit
1099-INT (92)Statement for Recipients of Interest Income. Used to Report interest income.
02 Interest
08 Tax Withheld
22 Savings Bonds
29 Foreign Tax Credit
40 Interest Forfeiture
1099-MISC (95) Statement of Recipients of Miscellaneous Income.
08 Tax Withheld
15 Nonemployee Compensation
16 Medical Payments
17 Fishing Boat Proceeds
18 Rents
19 Royalties
20 Prizes and Awards
30 Substitute Payments for Div.
31 Excess Golden Parachute
1099-0ID (96) Statement for Recipients of Original Issue Discount. Used to report original issue discounts.
02 Interest
08 Tax Withheld
40 Interest Forfeiture
53 Original Issue Discount
1099-PATR (97) Statement for Recipients of Taxable Distributions Received from Cooperatives. Used to report distributions from cooperatives to their patrons.
08 Tax Withheld
43 Patronage
44 Non-Patronage Distribution
45 Retained Allocations
46 Redemption
47 Investment Credit
48 Energy Credit
49 Jobs Credit
1099-R (98) Statement for Recipients of Total Distributions from Profit-Sharing, Retirement Plans, Individual Retirement Arrangements, etc. Used to report distributions from retirement or profit-sharing plans or from individual retirement arrangements (IRAs).
08 Tax Withheld
23 Capital Gains
34 Ordinary Income
35 IRA Distribution
36 Gross Income
37 Employee contribution
38 Unrealized Appreciation
39 Other Income
DETAILED EXPLANATIONS OF 1099 DOCUMENT CODES
Definitions are found under the Form on which information is reported.
This glossary is only a guideline of definitions to help local offices in understanding the meaning of data received. It is a list of unofficial definitions that cannot be used in any legal action. Legal definitions must take precedence in a court of law.
Form W2-G
GROSS WINNINGS--A payer of gambling winnings must report any winnings over $600 on a Form W-2G. Any person receiving a payment with respect to a wager in a sweepstakes, wagering pool, lottery, or other wager (including a parimutuel pool with respect to horse races, dog races, or jai alai) makes a statement to the payer of those winnings upon the payer's demand. A racetrack is required to furnish the IRS only the names of recipients of payments of $600 or more. Payment of gambling winnings of $1,200 or more from bingo or slot machine play or $1,500 or more from keno games must be reported. Nevada gambling casinos must file information returns for bingo and keno payoffs of $600 or more. There is no underlying asset account. The money field is positive.
ADDITIONAL WINNINGS FROM IDENTICAL WAGER--An identical wager is more than one wager on the same exact thing (for example, two $2 bets on a particular horse to win the same race). All identical wagers are aggregated to determine if the total amount is more than $1,000. There is no underlying asset account. The money field is positive.
Forms 1041, 1065, 1120S K1
DISTRIBUTIVE SHARES--In a trust/partnership/subchapter S corporation each beneficiary/partner/shareholder must report his or her distributive share of income or loss whether or not it is actually distributed. Generally, the distributive share is determined by the trust instrument, partnership agreement, or shareholding. The underlying asset account is the economic interest of the payee. The money field could be positive or negative (-).
INTEREST - This is any interest on evidences of indebtedness (including bonds, debentures, notes, and certificates) issued by a corporation in registered form, or interest on other evidences of indebtedness issued by a corporation or a type offered by corporations to the public. Includes interest on deposits with a bank and amounts paid by a mutual savings bank, savings and loan association, buildingand loan association, cooperative bank, homestead association, credit union, or similar organization, in respect of deposits, investment certificates, or withdrawable or repurchasable shares. Also interest on amounts held by an insurance company under an agreement to pay interest and interest on deposits with stockbrokers and dealers in securities. Interest payments of $10 or more are reported. The underlying asset account is the bond or deposit generating the interest. The money field is positive.
DIVIDENDS - A distribution of property (usually cash) made by a corporation to its shareholders. Generally the payment is made out of its earnings and profits. The underlying asset account is the stock held. The money field is positive.
Form 1099-PATR
PATRONAGE DIVIDENDS - An amount paid to a patron by an organization on the basis of quantity or value of business done with or for the patron, under an obligation of the organization to pay the amount. The obligation existed before the organization received the amount paid. This is determined by reference to the net earnings of the organization from business done with or for its patrons. The amount reported is for payments of $10 or more during the calendar year. There is no underlying asset account. The money field is positive.
NON-PATRONAGE DISTRIBUTIONS - Includes amounts paid as dividends on the cooperative's capital stock during the taxable year. Also amounts paid in money, qualified written notices of allocation, or other property and paid on a patronage basis to a farmers cooperative's patrons from earnings which result from business done for the United States or any of its agencies, or from earnings from sources other than patronage. Underlying asset account is the stock. The money field is positive.
PER-UNIT RETAIN ALLOCATIONS--Form 1099-PATR shows total per-unit retain allocations paid in cash, qualified per-unit retain certificates (face amount), and other property. Per-unit Retail Allocation means any allocation by an organization to a patron with respect to products marketed for him. There is no underlying asset account. The money field is positive.
REDEMPTION or NON-QUALIFIED AND RETAIN ALLOCATIONS--All redemptions of nonqualified written notices of allocation issued as patronage dividends, nonquaiified written notices of allocation issued as nonpatronage allocation (applicable only to certain qualified farmers cooperatives), and nonqualified per-unit retain certificates, issued withrespect to marketing. There is no underlying asset account. The money field is positive.
INVESTMENT CREDIT--No longer available. Not an income item.
ENERGY INVESTMENT CREDIT--No longer available. Not an income item.
JOBS CREDIT--No longer available. Not an income item.
Form 1099-G
UNEMPLOYMENT COMPENSATION--Generally includes any amount received under an unemployment compensation law of the United States or of a State. It includes benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund and railroad unemployment compensation benefits of $10 or more. There is no underlying asset account. The money field is positive.
PRIOR YEAR REFUND--Refunds, credits, or offsets of State or local income tax for which the recipient previously had been allowed a deduction on his/her Federal income tax return. Payments of $10 or more are reported. There is no underlying asset. The money field is positive.
DISCHARGE or INDEBTEDNESS--Any amount in excess of $600 that was owed to the Federal Government and that has been declared uncollectible as a result of a defaulted obligation, not in dispute, and either a Federal statute expiration for collection of the debt has occurred or a formal compromise agreement has been entered into. If an amount less than the amount owed is accepted as payment in full, the difference between the amount of the debt and the settlement amount is entered on 1099-G. The discharge or forgiveness of indebtedness is taxable income to the person originally liable for that amount. There is no underlying asset account. The money field is positive.
TAXABLE GRANT--A grant administered by a Federal, state or local program to provide subsidized energy financing or grants for proJects designed to conserve or produce energy. Also reported are other taxable Federal grants of $600 or more. There is no underlying asset account. The money field is positive.
AGRICULTURAL SUBSIDIES--U.S.D.A. agricultural subsidy payments made to recipients during the year. Form 4347 has been issued for optional use by persons who, as payees of record, receive from the U.S. Department of Agriculture cash program payments belonging to other persons. Form 1099-G reports the actual owner of the payments. There is no underlying asset account. The money field is positive.
Forms 1099-DIV
DIVIDENDS--A distribution of property (usually cash) made by a corporation to its shareholders. Generally the payment is made out of its earnings and profits. The underlying asset account is the stock held. The money field is positive.
CAPITAL GAINS--Capital gain net income is the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges or an asset given this effect under the Internal Revenue Code. The capital asset is stock held by the taxpayer. The money field is positive.
NON-TAXABLE DISTRIBUTIONS--Generally, any distribution made out of earnings and profits by a corporation to its stockholders is considered a dividend. However, a distribution is not a taxable dividend if it is a return of capital to the stockholder. Most distributions are in money, but they may also be made in stock or other property. The underlying asset account is the stock held. The money field is positive.
CASH LIQUIDATION DISTRIBUTION--An interest in a corporation may be disposed of by sale or exchange of the capital stock, by redemption of the stock by the corporation, or by complete or partial liquidation of the corporation. There is no underlying asset account since the corporate interest has been liquidated. The money field is positive.
NON-CASH Liquidation Distribution--A corporation making any distribution in liquidation must file a Form 1099-DIV in each calendar year of the liquidation for each stockholder to whom it makes a distribution of $600 or more during the year. The basis of property received in a distribution in complete or partial liquidation in which gain or loss is recognized by the stockholder is the fair market value of the property at the time of distribution. If no gain or loss is recognized on the distribution, the basis of the property distributed is the adjusted basis of the stock surrendered. The asset account was the stock surrendered. The money field is positive or negative (-).
DIVIDENDS QUALIFYING FOR EXCLUSION--Up to $100 of qualifying dividends received can be excluded from income (on a Joint return, up to $200). Only certain dividends qualify for exclusion. The Form 1099-DIV indicates whether the dividends received qualify for the exclusion. The underlying asset account is the stock. The money field is positive.
DIVIDENDS NOT QUALIFYING FOR EXCLUSION--certain stock dividends do not qualify for the exclusion. The underlying asset account is the stock. The money field is positive. "
Form 1099-INT
INTEREST--This is any interest on evidences of indebtedness (including bonds, debentures, notes, and certificates) issued by a corporation in registered form, or interest on other evidences of indebtedness issued by a corporation of a type offered by corporations to the public. Includes interest on deposits with a bank and amounts paid by a mutual savings bank, savings and loan association, building and loan association, cooperative bank, homestead association, credit union, or similar organization, in respect of deposits, investment certificates,or withdrawable or repurchasable shares. Also interest on amounts held by an insurance company under an agreement to pay interest and interest on deposits with stockbrokers and dealers in securities. Interest payments of $10 or more are reported. The underlying asset account is the bond or deposit generating the interest. The money field is positive.
SAVINGS BONDS-.Amounts of interest on U.S. Savings Bonds, Treasury bills, Treasury notes, and Treasury bonds. The underlying asset is the bond/note which may, however, have been redeemed with the interest generated at the time of redemption. The money field is positive.
INTEREST FORFEITURE--Amounts of interest or principal forfeited as a penalty for early withdrawal of savings from a time savings account. Underlying asset account is the amount of the early withdrawal. The money field is positive.
Form 1099-B
Items below relate to the proceeds from broker and barter exchange transactions. Form 1099-B reports proceeds paid from broker and barter exchange transactions for each person for whom the broker has sold stock, bonds, commodities, regulated futures, contracts, etc., or who exchanged property or services through the barter exchange. Any person, including a governmental unit and any agency or instrumentality doing business as a broker or barter exchange files a Form 1099-B.
Broker means a person that, in the ordinary course of a trade or business, stands ready to effect sales to be made by others. The transactions involving regulated futures or foreign currency contracts are reported on an aggregate basis.
Barter exchange means any person with members or clients that contract either with each other or with such person to trade or barter property or services either directly or through such person. The term does not include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis.
STOCKS AND BONDS--The gross proceeds from any disposition of securities (including short sales), commodities, or forward contracts. The underlying asset was the item disposed of. The money field is positive.
BARTERING--Gross amounts received by a member or client of a barter exchange for good or services, This includes cash received, property or services received, a credit on the books, or scrip issued. There is no underlying asset account. The money field is positive.
AGGREGATE PROFIT AND LESS--In a bartering transaction, the aggregate profit or (loss) for the year from regulated futures or foreign currency contracts. The underlying asset account is the futures or currency contracts. The money field is positive or negative (-).
Profit AND LOSS LAST HALF OF 1986--In a bartering transaction, the profit or (loss) realized by the customer on closed regulated futures or foreign currency contracts in 1986. The underlying asset is the futures or currency contracts. The money field is positive or negative (-).
UNREALIZED PROFIT AND LOSS ON OPEN CONTRACTS FROM 1985--In a bartering transaction, the unrealized profit or (loss) on open regulated futures on foreign currency contracts at the end of 1985. The underlying asset is the futures or currency contracts. The money field is positive or negative (-).
UNREALIZED PROFIT AND LOSS ON OPEN CONTRACTS FOR 1986--In a bartering transaction, the unrealized profit or (loss) on open regulated futures or foreign currency contracts on December 31, 1986. The underlying asset is the futures or currency contracts. The money field is positive or negative (-).
Form 1099-MISC
EXCESS GOLDEN PARACHUTE--Payments in which a corporation agrees to pay key personnel additional compensation packages in lieu of continued employment. Generally, the payment is considered excessive if it equals or exceeds three times the average compensation of the recipient over the previous 5 year period. There is no asset account. The money field is positive.
PRIZES AND AWARDS--Gross income includes all amounts received as prizes and awards, unless it is a scholarship or fellowship grant excluded from gross income. These prizes and awards include (but are not limited to) prizes and awards in contests of all types, as well as any prizes and awards from an employer to an employee in recognition of some achievement in connection with his employment. If the prize or award is not made in money but is made in goods orservices, the fair market value of the goods or services is the amount included in income. There is no underlying asset. The money field is positive.
RENTS--Compensation made in any form, by a tenant to a landlord or owner for the use of land, buildings, or any property, movable or fixed, especially when paid in money at regular or specified intervals. A real estate agent reports on form 1099-MISC the gross amount of rents collected on behalf of a property owner (without deduction of commissions, fees or expenses retained), if such amount totals $600 or more during the taxable year. The underlying asset is the property rented. The money field is positive.
ROYALTIES--A share of proceeds paid to a proprietor, author, or inventor, by those doing business under some right belonging to him. Royalty payments, aggregating $600 or more in a calendar year, made by a publisher directly to an author or his literary agent (individual or partnership, not a corporation) must be reported on Form 1099-MISC. The agent, must file information returns showing the gross amount he received from the publisher (prior to any deduction of commissions, fees, and expenses) and paid over to the author. There may or may not be an underlying asset such as a copyright, patent, land, etc. The money field is positive.
SUBSTITUTE PAYMENTS--A payment in lieu of; (1) tax-exempt interest to the extent that interest has accrued while a short sale was open, and (2) a dividend, if the ex-dividend date is after the transfer of stock for use in-a short sale and before the closing of the short sale. The underlying asset account is the bond/stock used in the short sale. The money field is positive.
Form 1099-OID
INTEREST FORFEITURE--Amounts of interest or principal forfeited as a penalty for early withdrawal of savings from a time savings account. Underlying asset account is the amount of the early withdrawal. The money field is positive.
ORIGINAL ISSUE DISCOUNT--The difference between the issue price and the stated redemption price at maturity. In the case of bonds or other evidences of indebtedness registered with the Securities and Exchange Commission, "issue price" means the initial offering price to the public at which price a substantial amount such bonds, etc. were sold. The underlying asset is the bond generating the OID.
Form 1099-R
On these transactions, the underlying asset account will be the total amount distributed to the taxpayer.
IRA DISTRIBUTIONS--amount distributed from an Individual Retirement Arrangement (IRA), Simplified Employee Pension (SEP), or Deductible Voluntary Employee Contribution (DEC). May be includible in recipient's current income. Total does not include any amounts paid for IRA insurance protection. The underlying asset account is the plan generating the income. The money field is positive.
EMPLOYEE CONTRIBUTIONS--Employee contributions made to a profit . sharing or retirement plan, or insurance premiums. This is the amount actually contributed by employee over years under the retirement or profit-sharing plans plus any employer-contributed amounts considered to have been contributed by the employer. This is also the accumulated cost of premiums paid for life insurance protection, taxable to the employee in previous years and in the current year and premiums paid on commercial annuities.
ORDINARY INCOME and CAPITAL GAIN--Upon retirement an allocation of the taxable portion of a lump-sum distribution between long-term capital gain and ordinary income is made on the basis of the number of employee's months of plan participation before 1974 and after 1973. A lump-sum distribution is a payment of the entire balance to the credit of a participant in a qualified plan within one taxable year of the participant. A 1099-R is issued by the payer of the lump-sum distribution to show the allocation between capital gain and ordinary income. Money field is positive.
GROSS INCOME--Total of ordinary income and capital gain distributed.
UNREALIZED APPRECIATION--Net unrealized appreciation in employer's securities. In a trust created or organized in the United States and forming part of a stock bonus, pension, or profit-sharing plan of an employer for the exclusive benefit of his employees or their beneficiaries, if a distribution includes securities of the employer corporation (or a subsidiary of the parent corporation) and the net unrealized appreciation in the employer's securities can be computed, it would be reported on the form 1099-R. Money field is positive.
OTHER INCOME--Payers whose distribution includes items not covered by any other entries on Form 1099-R and information to employees or beneficiaries is desired would report it is other income. (For example the current acturial value of an annuity contract that is a part of a lump-sum distribution or the value of US retirement bonds that may be distributed to employees or beneficiaries.)
Form 5498
The underlying asset will be the plan to which contributions were made.
SEP CONTRIBUTION TY86--A Simplified Employee Pension (SEP) contribution made in 1986 and through April 15, 1987 for tax year 1986.
ROLLOVER IRS DEC CONTRIBUTIONS--An individual may withdraw all or part of one IRA, SEP or DEC and transfer it to another IRA.
IRA OR DEC CONTRIBUTION TY 85 IN 86--Contributions made in 1986 up to April 15, 1986 for tax year 1985.
Form 1099-A
The underlying asset would be any distribution of proceeds on
foreclosure etc.
DEBT OUTSTANDING--Reported on Form 1099-A, Information Return for Acquisition or Abandonment of Secured Property, for each borrower if money is lent in connection with the trade or business and, in full or partial satisfaction of the debt, an interest in property that is security for debt is acquired, or the lender has reason to know that the property has been abandoned.
Property means real property, such as a personal residence, intangible property, or tangible personal property held for investment or used in a trade or business. This is the debt outstanding at the time the interest in the property was acquired or on the date one first knew or had reason to know that the property was abandoned.
DEBT SATISFIED--For acquisition by the lender only of property, the amount of debt satisfied by the acquisition.
FAIR MARKET VALUE--The standard for determining value of property received in an exchange or acquisition. In the case of foreclosure, execution, or similar sale, the proceeds of sale will be considered the fair market value of the property in the absence of clear and convincing evidence to the contrary. Money field is positive.
Several of the IRS documents available that can give you information are listed below. These can be obtained from your local IRS office.
Instruction to Filers of Forms 1099, 1098, 5498, 1096, and W2-G
Publication 916, Information Returns
Publication 550, Investment Income and Expenses
Publication 525, Taxable and Nontaxable Income
Publication 905, Tax Information Unemployment Compensation
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