State of Louisiana
M. J. "Mike" Foster, Jr.
Mark C. Drennen
October 3, 2000
MEMORANDUM SA 01-07
|All State Agencies|
|FROM:||F. Howard Karlton, CPA|
The Internal Revenue Service (IRS) has recently released the Instructions for Forms 1099, 1098, 5498, and W-2G which details the reporting requirements for the calendar year ending 2000. Agencies should obtain a copy of these instructions from the Internal Revenue Service by either calling 1-(800) 829-3676 or through the Internet at "www.irs.ustreas.gov".
The 1099 process, which is run during the December monthly close, looks at the vendors 1099 status and the object code used on the payment voucher at the time the process is run to determine if a payment will be reported. Therefore, even though the vendors 1099 indicator was "N" when the payments were issued, all payments for that vendor record issued using 1099 reportable objects will be reported as long as the indicator is changed to "Y".
Agencies paying 1099 vendors reportable through their own internal subsystems must report 1099 information themselves. If your agency has 250 or more 1098s or 1099s, you must transmit the returns using magnetic media. Failure to properly report this information can result in large fines (i.e. maximum penalty of $250,000 per year for failure to report on magnetic media). IRS publication 1220, Specifications for Filing Forms 1098, 1099, 5498, and W-2G magnetically or electronically (Rev. 7/00) provides the necessary information for magnetic reporting.
Should you have questions concerning 1099- Misc. Reporting, please contact the OSRAP Help Desk at (225) 342-1097. Remember all OSRAP SA memorandums and forms may be accessed through our home page at http:\\www.doa.state.la.us\osrap\osrap.htm.
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