Generate 1099 Statements
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Contents
Overview of IL276
The Generate 1099 Statements report produces notices to investors related to the interest paid in a calendar year. This report is traditionally run as a part of your organization's year end periodic processing, and is also used to load the 1099 information into the IRS Reporting System. 1099 statements must be sent to investors no later than January 31st. The date that they are due to the IRS can fluctuate, so it is advised that you check the IRS Publication 1220 for the current year's due date. To generate the statements:
- From the DDI Connect main menu, double-click Financial Services
- Double-click Investments
- Double-click Reports
- Double-click 276 Generate 1099 Statements. The parameters screen will launch:
You have the following fields available:
| Field | Description | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Statement date | This date is traditionally a year end date. You can type the date in a mm/dd/yyyy format or click the calendar icon to select the date. The date field is only used to establish the year element of a date. The 1099 report assumes to create 1099s from January through December. | ||||||||||
| Fiscal year | This is a display only field that will reflect which fiscal year the statement date falls in | ||||||||||
| Group method | You can choose to group the statements by account or by Tax ID. Click the drop down arrow to select your grouping method. IMPORTANT NOTE: The option you select here directly affects the statements you generate. If your template is set up for the Account method, for example, selecting Tax ID will cause your statements to display improperly. The same applies if your template has been configured for the Tax ID - selecting Account will cause your statements to display improperly. If your statement template has an Account column, it has been configured for you to run the statements grouped by Tax ID. If it does NOT have an account column, it has been configured to be run grouped by Account | ||||||||||
| Account | If you wish to generate statements only for a particular account, you can type the account number here or click the search icon to select the account. Leave this field blank to generate statements for all qualifying accounts | ||||||||||
| Constituent | If you wish to generate statements only for a particular constituent, you can type the constituent PIN here or click the search icon to select the constituent. Leave this field blank to generate statements for all qualifying constituents | ||||||||||
| Load IRS payee information | If selected, the report results will be loaded into the IRS Reporting System | ||||||||||
| Create 1099 information | If selected, the report results will be loaded into the IRS Reporting System. Selecting this box enables four additional fields:
| ||||||||||
| Generate statements | If selected, the system will generate 1099 notices for investors. *Updated from 'Create notices' to 'Generate statements'* | ||||||||||
| Extract taxid in secure format | If selected, the 1099 system will extract taxids in a secure format. | ||||||||||
| Merge method | NOTE: This field is only enabled if "Generate statements" is selected Click the list icon to select the method desired to create the notices. Your options are:
| ||||||||||
| Sort by | You can opt to have the report sort by Constituent Type, Tax ID, or no particular sort order. Click the drop down arrow to select your sort preference | ||||||||||
| Remove existing payee information | NOTE: This field is only enabled if "Load IRS payee information" is selected If selected, the system will remove any existing payee information from the IRS Reporting system for this form for the specified tax year, prior to loading the data from this report | ||||||||||
| Payee operation | NOTE: This field is only enabled if "Load IRS payee information" is selected You can opt to copy amounts to existing payee (which will overwrite existing data in the IRS Reporting system) or you can add amounts to existing payee (which will add the data from this report generation to existing data in the IRS Reporting system) | ||||||||||
| Include groupings with interest under $10 | If selected, the 1099 system will include groupings with interest under $10. |
Rules
- 1099-INT merge form code is chosen by default
- The create notices option is disallowed when providing an account or constituent value
- Users must create 1099's for all investors before providing an account or constituent value
- Group by account is the default Group method
- The minimum interest applies to total interest for the investor, including IRAs, and prevents reporting investment interest to the IRS if the total is <$10. However, certain investments are always reported: IRA's, corrections, and investors with AI codes of TAXN or TAXF._
- The "Exclude IRAs" option applies only to merge forms. By the time the program is generating statements, the IRS records have already been created. So if an investor has $100 in IRA interest and $1 in non-IRA interest, we're reporting $101 to the IRS and they get a statement, even if IRAs are excluded.
Mailmerge Fields
This report generates mailmerge data (max 50) and has the potential to include the following fields.
| Name | Description |
|---|---|
| Address1 | |
| Address2 | |
| Address3 | |
| Address4 | |
| Address5 | |
| Address6 | |
| BlankField | |
| BaseDate | |
| SocialSecurity | |
| Registration | |
| InterestEarned | |
| TaxableYear | |
| InvestmentWording | |
| Page1Info | |
| Page2Info | |
| TotalBalance | |
| TotalInterest | |
| TotalPenalty | |
| TotalWithheld | |
| RegType2 | |
| RegType3 | |
| InvestorWording | |
| Page3Info |
Merge Form Selection Rules
| Form | Description |
|---|---|
| CES[1-5] | |
| CES[1-5]T | |
| I9[1-5] | |
| I9[1-5]T |
Print Options
After clicking the Print Options button you will see the following options. Choose the desired options and click OK to return to the report parameters screen.
| Option | Description |
|---|---|
| Printer | Click the drop down arrow to select from a list of available printers. DDI Connect uses your default printer unless told otherwise |
| Format | Click the drop down arrow to select from a list of available formats. Select paper size, number of columns, and number of rows for printing. Each report has built-in format defaults. Select “Use Defaults” to use the built-in report defaults. The number of rows and columns controls the print size and amount of information per page |
| Memo | If you wish, you can add a memo to the output of the report. NOTE: It is recommended that Word documents be saved with the .docx extension |
| View Report | This option generates a pdf file that is displayed on the screen when the report is generated |
| Archive Report | If this option is selected, the system will archive the report in the DDI Connect report archives. For information on working with archived reports, please reference this page: Archived Report Viewer |
| Print Report | If selected, the system will generate the report output to your default printer. NOTE: You will also receive a pdf version of the report, displayed on your screen |
| Print via PDF | Prints directly to your printer. |
| This option allows you to send a .pdf attachment of the report to the indicated users' email addresses. When OK is clicked, a dialog box will open requesting a recipient | |
| Duplex/Top | Prints the report on both sides of the paper in landscape style. The printer must be capable of printing on both sides or an error will occur |
| Duplex/Side | Prints the report on both sides of the paper in portrait style. The printer must be capable of printing on both sides or an error will occur |
| Green bar | Adds shaded, horizontal bars to the report, making it easier to read across columns |
| No dialog | Selecting this option means that no ‘Report Completed’ dialog will display after the report has been generated |
| Extra copies | If you want extra copies of the report generated, type the number in this field |
To Create a mid-year 1099 for a Specific Constituent
1. Run IL276 to create 1099s for all constituents
2. Run IL276 for the desired constituent/account
3. Print the 1099-INT merge statement for the desired constituent/account
Click start. If you elected to generate notices, you will now want to merge them. The system will now generate the report and provide a summary of the results. Click below to view a sample of this summary report, as well as a sample statement.
Security Function
Users must pass the security function listed below in order to run this report.
INVINQ
