#GPUGSummit | #INreno15 #GPUGSummit MANAGE 1099S AND KEEP THE IRS OFF YOUR BACK Zubin Gidwani, Dynamic Budgets Chris Hadden, Greenshades Software

#GPUGSummit | #INreno15 MOST COMMON 1099 ERRORS THAT CAUSE IRS PENALTIES  Failure to file on-time  Failure to electronically file when required  Incorrect name/TIN  Failure to withhold back-up withholding

#GPUGSummit | #INreno15 PENALTIES Penalties are charged for late or incorrectly filed returns (both recipient and government copies) and are based on when the CORRECT return is received.  $30 per return filed within 30 days of due date  $60 per return if filed by August 1  $100 per return filed after August 1

#GPUGSummit | #INreno15 IMPORTANT DEADLINES – February 1, 2016 – 1099 recipient copies must be distributed – February 29, 2016– 1096 and 1099 paper copies due to the IRS – March 15, 2016 – 1042 recipient copies and IRS copies/files due – March 31, 2016 – electronic file(s) due to the IRS

#GPUGSummit | #INreno15 WHO NEEDS TO FILE ELECTRONICALLY  Organizations filing 250 or more returns of a same type must file electronically – Requirement is per EIN – This requirement is per type of 1099 ( if a company files MISC and INT returns, only the MISC returns MUST be filed electronically)  When correcting returns, 250 or more corrected returns must be files electronically

#GPUGSummit | #INreno15 INCORRECT NAME/TIN  The vendor name must be entered into Name Line 1 on the 1099 exactly as it is registered with the IRS.  D.B.A. or aka names can be entered into Name Line 2  Sole proprietors must use their full name as their legal business (Name Line 1) name regardless of their D.B.A.  TIN an SSN are both 9 digits and contain no letters, are not consecutive numbers and should be formatted properly – TIN XX-XXXXXXX – SSN XXX-XX-XXXX

#GPUGSummit | #INreno15 BACK-UP WITHHOLDING  Back-up withholding is required when a vendor has not provided a valid TIN  Back-up withholding rate is 28% – Reported in box 4 of the 1099-MISC form and is included on form 945  Starting in 2015, the 945 will be available for electronic filing but is not required to be efiled

#GPUGSummit | #INreno15 I RECEIVED A NO-MATCH LETTER  A CP2100 or CP2100A notice is a that indicates that a payer may need to start back-up withholding. It includes a list of missing, incorrect or not issued TINs and the names that were associated. – Compare the TIN/name with your records W-9 System records Previous “B” notices

#GPUGSummit | #INreno15 MISSING TIN – If missing TIN, immediately begin backup withholding and request correct TIN information from payee (form W-9). Begin withholding within 30 days of receipt of CP2100/CP2100A Suspend back-up withholding within 30 days of receiving TIN information – You must complete three requests for TIN in order to prevent penalty for incorrect TIN. Initial request 1 st annual 2 nd annual

#GPUGSummit | #INreno15 INCORRECT TIN  Corrected TIN numbers do NOT require a corrected 1099 to the IRS or vendor – Corrected 1099s are only required if there is a need to correct financial information  Correct TIN in your records and keep record of the change

#GPUGSummit | #INreno15 TIN MATCHING  TIN Matching is a free service available to authorized payers – An authorized payer is one who has filed forms 1099-B, 1099-DIV, 1099-INT, 1099-K, MISC, 1099-OID or 1099-PATR with the IRS in at least one of the two past tax years.  An application must be completed by a principal of the company after registration – Legal name (verified with IRS & SSA records) – Social Security Number (verified with SSA records) – Date of birth (verified with SSA records) – Telephone number – address – Adjusted Gross Income (AGI) from either your current year or prior year filed tax return (verified from IRS records) – Home mailing address (verified from IRS records)

#GPUGSummit | #INreno15 TIN MATCHING  There are two methods of TIN Matching – Up to 25 records can be matched in real time through the Interactive TIN Matching service – Bulk TIN Matching is available for submission of up to 100,000 records. Results are available within 24 hours of submission.  Account lock-out – If the same TIN is submitted with various names OR the same name is submitted with various TINs, your account will be suspended for a period of 96 hours.

#GPUGSummit | #INreno15 HOW TO E-FILE  Dynamics GP does not offer the electronic file for 1099  Federal E-file must comply with IRS publication 1220  E-file must be received by the IRS no later than March 31 st  E-file can be edited and submitted through the Greenshades Tax Filing Center  Recipient 1099 forms and E-file can be created and submitted through the Greenshades Year End Forms  Recipient 1099 forms and E-file can be submitted through 1099Pro

#GPUGSummit | #INreno SPECIFICATION IS PULLED FROM THE VENDOR CARD AT TRANSACTION ENTRY TIME From the Vendor Card you go into Options to view the Tax Type and 1099 Box

#GPUGSummit | #INreno15 DURING INVOICE ENTRY YOUR AP STAFF CAN OVERRIDE THE TRANSACTION AMOUNT SUBJECT TO 1099 TRACKING

#GPUGSummit | #INreno15 WHY WOULD A 1099 SUMMARY BE WRONG?  1099 amounts are stored in the vendor summary records  Each transaction post updates the 1099 YTD value in the Vendor Summary.  Changes to a vendor’s “1099 Type”are not automatically retro-active, they will only impact future transactions.

#GPUGSummit | #INreno15 HOW CORRECT VENDOR 1099 AMOUNTS  GP 2010 –1099 Details or Update 1099 Information Can filter to ranges of vendors, updates YTD Summaries  GP 2013 and later – edit 1099 transactions Can specify 1099 details by transaction

#GPUGSummit | #INreno15 EDITING 1099 DATA IN GP2010 OR LATER VERSIONS Tools -> Utilities -> Purchasing -> Update 1099 information Expanded functionality from PSTL. Not only recalculates 1099 summary amounts for the YTD transactions, but allows one to edit the 1099 Tax type info simultaneously. All or nothing from the year perspective.

#GPUGSummit | #INreno15 GP2010 – SINGLE VENDOR EDITS EDIT 1099 DETAILS New functionality introduced to allow users to manually edit particular Vendor’s tax type and edit or redistribute 1099 amounts per 1099 Box. To view & Edit 1099 Details Cards -> Purchasing -> 1099 Detail To view 1099 Details Inquiry: Inquiry -> Purchasing -> Vendor 1099 Details

#GPUGSummit | #INreno15 ENHANCED EDIT 1099 FUNCTIONALITY AS OF GP 2013 You can edit individual vendor transactions (tax type, 1099 Box, and 1099 amount). *Note that these edits can be overridden with changes from the 1099 Details edit window.

#GPUGSummit | #INreno15 GREENSHADES TAX FILING CENTER  An integrated GP Module for W2 and 1099 printing and efiling  Allows for electronic viewing of 1099s  Easy editing to form data

#GPUGSummit | #INreno15 GREENSHADES E-FILE WIZARD

#GPUGSummit | #INreno15 SELECT FILES TO BUILD

#GPUGSummit | #INreno15 EDIT 1099 INFORMATION

#GPUGSummit | #INreno15 REVIEW BUILT FILES

#GPUGSummit | #INreno15 GREENSHADES YEAR END FORMS

#GPUGSummit | #INreno15 EDIT FORM INFORMATION

#GPUGSummit | #INreno15 SIMPLE E-FILE WIZARD

#GPUGSummit | #INreno PRO   Stand-alone software alternative  Allows you to print on plain paper  Turnkey Service Bureau offering  Web presentment  SAS 70 certified (if you have SOX/IT/Audit requirements)

#GPUGSummit | #INreno15

1099PRO IMPORT TEMPLATE (TAB DELIMITED FILES FROM EXCEL)

#GPUGSummit | #INreno PRO SOFTWARE INTERFACE

#GPUGSummit | #INreno PRO FORM EDIT SCREEN

Contact Information Zubin Gidwani Dynamic Budgets,Founder GPUG All Star Chris Hadden Greenshades Software, Technical Sales Manager