1099 Tips . . . Just in Time
December 01, 2004• Before filing, always review all 1099 instructions and publications from the IRS
• Download 1099 updates for OGwin versions 1.70 and 1.80 from our website – http://www.ogsys.com . Then, apply the updates to your database.
• Consider filing electronically through the IRS website (See http://fire.irs.gov )
• Note the new field in OGwin’s new Version 1.80—DBA (Doing Business As)—in Owner Maintenance and Vendor Maintenance. Use this field to input the name that coincides with the Federal ID number for owners and vendors who operate under a different name. The 1099 programs will use the DBA field, if populated, for the recipient name on 1099s. If the DBA field is not populated, then the 1099 programs will use the Name field in the maintenance.
The Top 12 Questions about 1099s
Q : On the Vendor 1099 Proof Report, what’s the difference between “Print Non-qualifying Amounts” and “Print Non-flagged Vendors”?
A : Printing all “Non-qualifying Amounts” will print all amounts . . . regardless of the minimum you have set on the 1099 run. Printing “Non-flagged Vendors” will print all vendors . . . regardless of the flag in the master file for “Send-1099.”
Q : What if I void a 2004 check in 2005, after I have already sent out 1099s?
A : When you voided the 2004 check, OGSYS updated the 1099 file for 2004 (which you will not see unless you decide to re-run your 2004 1099s). What happens in 2005 depends on whether you re-issue the check. If you issue it with a 2005 date, OGSYS will update the 1099 file for 2005, so that the amount is reported for 2005. If this is not the desired result, you may adjust the 1099 amount using the adjustment entry screens.
Q : When I start to close January 2005 for Revenue, the system says it will purge prior year’s 1099 information. Does this mean for 2004?
A : Yes. OGSYS purges the prior year’s 1099 information with the January Revenue close. Make sure you have a year-end back-up before proceeding.
Q : Can I print 1099s more than once?
A : Yes, 1099s can be printed over and over again until the information is purged. OGSYS does not purge 1099 information until the 1099s have been printed after the December month has been closed for that module.
Q : OGSYS says I didn’t print 1099s for last year, but I did. What does this mean?
A : It’s best to run the December close prior to the final 1099 run. If 1099s are run prior to the December close (not after), OGSYS does not recognize the 1099 run as “officially” being run. Therefore it does not purge the information for that year and could blend it into the next year.
Q : Can I run Electronic 1099s or Disk Media more than once?
A : Yes. You may generate 1099 electronic or disk media as many times as necessary until the information is purged. Make sure you generate 1099 information to an electronic file or disk media before closing January for the module.
Q : Which address box is used for 1099s?
A : 1099 forms use the address from the default screen of the master file record. Electronic, disk media and substitute 1099 forms also use the address from the first screen.
Version 1.80 has a field in owner maintenance and vendor maintenance called, “DBA.” If it is populated, OGwin will use that field for the recipient name in 1099s.
Q : How do I get Vendor 1099s to print in the Rentals box?
A : By default, Vendor 1099s print in Box 7—the non-employee compensation box. However, it is possible to choose the payment type, and therefore the box for a vendor’s 1099 amount. Vendor maintenance allows you to choose from the following payment types: 1 – Rents, 2 – Royalties, 3 – Other Income, 6 – Medical Payments, 7 – Nonemployee Compensation, and 14 – Gross Attorney fees.
Q : What are substitute 1099s?
A : A substitute 1099 is an IRS-approved optional form for Owners/Vendors. This is especially helpful to users who file electronically or by disk media. Send the electronic file or disk media to the IRS, then print substitute 1099s to send to the Owners/Vendors. Then, it will not be necessary to buy the standard 1099 forms.
NOTE: Do not send substitute forms to the IRS. You will be charged a penalty fee for filing incorrectly.
Q : The 1099s for Electronic and Disk Media ask the question, “Prior Filing Year?” Does this mean I can run 1099s for 2003?
A : Under normal processing, you would not be able to print 1099s for 2003 now. That information was purged in January 2004. This field is part of the record layout for electronic and disk media 1099s, so it must be included here. To be able to answer “Yes” to this field, you would have to take extra steps to ensure that the data is available.
Q : May I select and sort by vendor/owner codes for 1099s?
A : Yes. You have entity selecting and sorting capabilities for all 1099 processes.
Q : I need a list of all the vendors/owners with no federal ID.
A : You may select and sort by a Federal ID number any place where you have entity selection capabilities, including all the 1099 processes and entity listings. When you sort by Federal ID, the system places all vendors/owners without an ID at the beginning of the report. The Federal ID also prints on the brief entity listing.
Processing 1099s in Five Easy Steps
1099s and 1099 balances are integral parts of OGSYS. Enter balances only during installation, as OGSYS maintains 1099 information automatically. OGSYS provides 1099 updates as a normal part of support services. The system supports 1099 forms, disk media, electronic 1099 reporting, and substitute 1099 forms. Make sure you have loaded the latest release and service pack for current 1099 programs. Remember, the IRS will not return problem media. Keep a copy of the 1099 files you submit to the IRS.
1. Lay the groundwork:
• Always run an Accounts Payable Close Month for December before printing Vendor 1099s for a year.
• Always run a Revenue Close Month for December before printing Owner 1099s for a year.
• Always run a Lease Records Close Month before printing Land-Owner 1099s for a year.
• You may print the 1099 Proof Reports at any time during the year.
2. Print the 1099 Proof Report to verify 1099 amounts and to verify which entities will receive a 1099.
3. You may adjust 1099 amounts. For vendor 1099 adjustments, use the Vendor 1099-History Entry function from the Vendor History/1099s Menu. OGSYS will display a screen showing the check detail total and the 1099-history amount. The sum of these two figures is equal to the amount that will be printed on the 1099 form. To make adjustments to a Vendor’s 1099 amount, increase or decrease the 1099-history amount as needed. This is a replacement amount, and the system will add it to the check detail total to give you the actual 1099 amount.
For Owner 1099 adjustments, use the 1099 Adjustment Entry function from the Owner 1099s/Balances menu. Enter adjustments as replacement amounts in the appropriate fields.
For Land-Owner 1099 adjustments, use the Land-Owner 1099-History Entry screen on the Lease-Records Maintenance menu. Enter the adjustment as a replacement amount in the appropriate field.
4. Always verify 1099 amounts for at least one vendor/owner prior to mailing 1099s.
5. If you do not run December Close Month prior to printing 1099s, subsequent years’ 1099s will include amounts from the prior year. To correct, reprint 1099s for the prior year, and run the module Close Month for December of the current year.
NOTE: OGSYS includes items netted within the current 1099 calendar year in that year’s 1099 amounts. Therefore, do not run the cross-clear program using a December voucher date, unless the items being netted are to be included in the current year’s 1099s. Items to be included in the next year’s 1099 must have a January-or-later voucher date.
Substitute 1099s are available for Vendor 1099s, Owner Royalty 1099s and Land-Owner 1099s. Use these substitute forms to mail to the Vendors/Owners. These forms are not intended for the IRS. You will see Substitute 1099s in each respective 1099s menu.
NOTE: OGwin users filing disk media 1099 should save the file to a network or local drive using any file name. You will then go to the Split Program for 1099 found on the Exceptional Processing menu. This program will copy the file to the diskette assigning the IRS filename. This process should be performed even if the file spans only a single diskette.
Extra Tips to Brighten Your Year-end!
Make a year-end backup before closing the General Ledger.
Most important—This backup should include ALL OGwin files; data, programs, and control files. By copying all of OGwin, you are ensuring that you can restore the database for that time period, if necessary. Retain this backup permanently. Do not overwrite with a later backup. NOTE: If you back up only the data and your current database has been upgraded with a release, you will not be able to use the year-end backup.
The year-end General Ledger Close performs some extra steps.
The close routine will take the balances in the Profit and Loss (P & L) accounts and zero them into the Retained Earnings account for corporations, and into the Capital account for partnerships. Because of this, it is important to make sure your Fixed Account Maintenance is set up accurately. Make certain the first P & L account is specified correctly, the system will take every account from the first P & L account forward, and zero it to Retained Earnings. Also, make sure the Retained Earnings or Capital account is coded correctly in the fixed accounts. DO NOT close the General Ledger for the year without having the first P & L, Retained Earnings, and Capital accounts coded correctly because you will not be able to correct the incorrect balances by re-closing the year for the P & L accounts without restoring your database. You may re-close the year-end General Ledger, however, for any adjusting entries that are posted in the new year.
New Version 1.80 — Loaded with Wow! Factors
The company is releasing the much-anticipated OGwin Version 1.80. Major changes and new features include --
• New capability to reprint JIB Invoices
• New capability to automatically email Owner Joint Interest Billing Invoices, Revenue Summary Statements, and Accounts Receivable Statements
• ACH payment capability for owner revenue checks and vendor accounts payable checks. This module is an extra-cost item ($1,000) and includes the existing wire transfer module.
• Batchname Maintenance programs allow 9999 entries.
• New field in Revenue and Expense Decks that adds capability to close the deck for use, but maintain it within the system
• Implemented due date cut-off in A/P check pre-list
• Added functionality to search grid detail by Invoice date, Invoice number and Amount in Invoice Entry and Inquire Edit modules
• New capability to enter 8/8s and net volumes in AP invoice entry
• A second Other Deduction field for Purchaser Check Entry
• Expanded, five-character Recording Book field
• Capability to use an expense deck less than 100% with Lease Maintenance billees
• New “Document Class” as a maintenance function of its own (Land Module)
• New capability to print a Lease Records check register by-owner
Coming newsletters will expand and discuss these new features and changes. Initially, we are distributing the new release slowly to all clients who maintain an OGSYS support agreement. If you have an urgent need, expedite your shipment by contacting .
