integrity - service - innovation government convenience checks & 1099 tax reporting program...
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Integrity - Service - Innovation
Government Convenience Checks & 1099 Tax Reporting Program (1099TRP)
Amanda KissDFAS Tax Office
Defense Finance & Accounting ServiceJuly 29 – July 31, 2014
Integrity - Service - Innovation
Agenda
Convenience Check Payments and Taxes 1099 Tax Reporting Program (1099TRP) Responsibilities Obtaining Access Navigating the Program Reporting Checklist Challenges Scenarios Contact Information
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Convenience Check Payments and Taxes
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What does convenience check payments have to do with taxes?o IRS Form 1099-Miscellaneous reported to the Internal
Review Service (IRS)o IRS matches the data on the 1099 to the recipient’s tax
return to ensure income is reportedo IRS requirement to report income under certain
regulations for examples: Rent, Royalty, Services, and Medical Payments
1099 Tax Reporting Program (1099TRP)?
What is the 1099TRP and why use it?o 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
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Responsibilities of the APC Agency Program Coordinator (APC/AOPC)
o Access requiredo Log in at least once every 30 days o 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
o Report check information in absence of checkwriter o Maintain audit documentation to include
List of all checkwriters/account numbers All backup documentation
o Secure Privacy Act Information
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Responsibilities of the AO
Billing Official or Approving Officialo Access is optionalo Log in at least once every 30 days o Review check information reported by all assigned
checkwriterso Duties defined by the APCo Maintain audit documentation to include
Payment approval and backup documentso Secure Privacy Act Information
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Responsibilities of the Checkwriter Account Holder or Checkwriter
o Access requiredo Log in at least once every 30 days o Obtain vendor’s tax information before paying
Request vendor complete IRS Form W-9 o Must enter reportable check information at least monthlyo If required, modify or delete check informationo Ensures all reportable information is entered by December 31sto Maintain documents for audit purposes to include
Checkbook or logbook Transaction receipts, invoices, and backup documents Convenience Check Report
o Ensure Privacy Act Information is secure
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Responsibilities of the Tax Office
DFAS Tax Officeo Reviews and processes system access requestso Makes changes to user access and account data o Answers questions regarding check information
reportingo Issue IRS Forms 1099-Miscellaneous to vendors and
individuals o Electronically report the tax forms to the IRSo Provides customer service to 1099 recipients o Issue corrections to tax forms
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Obtaining Access
Applicant completes and signso System Authorization Access Request (DD FM 2875,
v. 2009) o DFAS 1099TRP Access Request (DD FM 2869, v. 2007)o Rules of Behavior Form
Applicant with email address ending in .edu must complete a White List Questionnaireo Not required if access routes through a .mil address
All blank forms are posted at https://dfas4dod.dfas.mil/systems/1099/
.Edu applicants may request forms and
questionnaire from [email protected]
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Obtaining Access – DD Form 2875
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Applicant completeso Type of Requesto Dateo System Nameo Part I
Supervisor completeso 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
Obtaining Access – DD Form 2869
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Applicant completes Section I, 1-13b
APC completes Section II, 15-19
Tax Office completes Section III, 20-22
Electronic signatures preferred
Obtaining Access
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Applicant with email address ending in .edu completes 3, 4, & 6 under Response column
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Navigating the Program
1099TRP Users with .mil/.gov email addresses o https://dfas4dod.dfas.mil/systems/1099
1099TRP Users with .edu email addresseso https://dfas1099trp.csd.disa.mil
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Navigating the Program
Homepage o Notificationso Link to enter
Programo Access Formso User’s Manualo Reporting infoo GSA presentationo More…
Note: Users with .edu email addresses cannot see the Homepage
Navigating the Program
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PKE Registration screeno Enter userid & passwordo Click Register button
Navigating the Program
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Toolbar commandsoSAVE then ADD saves the current record. It opens a blank
template for entering the next record oQUERY then QUERY again opens previously entered recordsoCANCEL then CLEAR removes entered keystrokes oDELETE then SAVE permanently removes a record o FIRST, PREVIOUS, NEXT, or LAST arrows to specific recordo TOTAL displays the number of records entered for an
account
Navigating the Program
Hint Text provides field info, i.e. date formats Record shows current record #/total # of records
Select Convenience Check Entry to open Convenience Check Transaction screen to enter check data
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Navigating the Program
Payment Year & Account Number auto-fill
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Navigating the Program
Click dropdown button to select the category for the type of payment
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Navigating the Program
Taxpayer ID #o SSN or EINo Nine numbers
Legal Nameo Name registered with IRS
DBA Nameo Optionalo Auto-fills with Legal
Name
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Navigating the Program
State field dropdown boxo 50 States & District of
Columbiao Military, AE, AP, or AA o U.S. territorieso Do not include foreign
addresses Zip Ext & Phone #
optional
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Navigating the Program Check written to U.S. vendor or individual residing at a
foreign addresso Contact the DFAS Tax Officeo Tax Office provides a spreadsheet templateo Enter vendor information and the check information on the
spreadsheeto Provide the spreadsheet to the Tax Office
Email password protected spreadsheet to [email protected] Send password in separate email
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Navigating the Program
Input data Click SAVE Click ADD to
open blank template to enter next check
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Navigating the Program
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Click Reports Click Convenience
Check Report Click Select box Click Run
Convenience Check Report button
Navigating the Program
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Convenience Check Report opens as an Adobe (.pdf) document
Navigating the Program
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Click Report Click Request Misc
Reports Click Run User
Access Report button Report opens as an
Adobe (.pdf) document
Reporting
Report checks written for:o Serviceso Rentso Medical and health care o Gross proceeds to an attorney in connection with legal
services (regardless of whether the services are performed for the payer)
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Reporting
Do NOT report checks written for or too Any government agency or anything owned or funded
by a government agencyo Tax exempt agencies/organizations: Red Cross,
Veterans of Foreign Wars (VFW) o Payments to DoD employees or service members o Military Funeral Stipend to the family or honor guard o Products or goods: flags, stamps, postage, foodo Bank fee for checks o Utilities: electric, gas, water, telephone, cable, interneto Small package transport services: Fed Ex, UPS, DLSo Storage: safety deposit box, warehouse o Subscriptions: magazine, newspaper
Checklist
APC, AO, and Checkwriter musto 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?
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Challenges Top 10 Challenges
o Not keeping the Tax Office informed of user or account changes
o APC not keeping checkwriters informed o Agency unprepared for auditso Waiting until December 31st to enter 12 months of datao Expecting the Tax Office to enter the check informationo Only reporting checks written for $600 and aboveo Reporting everything including goods/merchandiseo Not getting vendor’s information before paying themo Not reviewing the entered informationo After entering a check, not clicking SAVE and then ADD before
entering the next check
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Scenarios
I wrote a check and gave it to the vendor in December 2013. I entered the check information into the 1099TRP in December. The vendor lost the check and did not notify me until January 2014. What do I do?o Cancel the original checko Write the new check and give it to the vendoro Advise the vendor the original check was reported in
2013 to the Internal Review Serviceo Do not enter the new check information in the
1099TRP for 2014o Annotate the event history in your check log for audit
readiness
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Scenarios
I wrote a check and gave it to the vendor in December 2013. The vendor did not cash the check until January 2014. Should I have entered the check information in the 1099TRP in December 2013 or in January 2014?o You should have entered the check information in
December 2013. The check information is entered when it is written to the vendor; not when they cash it.
o 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.
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Scenarios
I wrote a check and gave it to the vendor in June 2014. The vendor lost the check in July. I reissued the check to the vendor in August. What information do I enter in the 1099TRP? o If the June check information was entered into the
1099TRP, modify the data to show the August reissued check information.
o If the June check information was not entered into the 1099TRP, only report the August reissued check information in the 1099TRP.
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Scenarios
I wrote a check for $611.30 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? o Child care………………….$115.50o Hotel reimbursement……$170.94o Mileage…………………….$247.86o Per Diem…………………..$ 77.00
Report the total amount. This is considered paying a
vendor. The individual will deduct their expenses on
their personal tax return.
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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?o 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.
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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?o Call us to discuss what to reporto Obtain IRS Forms 1099-Miscellaneous and an IRS Form
1096, Transmittal Form from the IRS or purchase them from an office supply store
o Read instructions, complete Forms 1099-Miscellaneouso Read instructions, complete Form 1096o Mail the vendor the 1099-Miscellaneous recipient copyo Mail the IRS their copy and the original Form 1096o Keep a copy for your recordso Annotate the mailing date in your records
Contact Information
Amanda Kiss, primary POCo 614 701-4002; DSN 791-4002o Email: [email protected] Fax: 614 701-2511; DSN 791-2511
Sandy Major, alternateo 614 701-2469; DSN 791-2469
Gayla Vincent, Program Managero 614 701-2475; DSN 791-2475
Website addresseso .mil/.gov users: https://dfas4dod.dfas.mil/systems/1099o .edu users: https://dfas1099trp.csd.disa.mil
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Integrity - Service - Innovation
The End
QUESTIONS?