subject: 1099 Software- How To E-file 1099 Div [print this page] There are many different types of 1099 formsThere are many different types of 1099 forms. One such type is the 1099 Div. 1099 Div forms report distributions, such as dividends or capital gain that were paid on stock and liquidation distributions. Form 1099-DIV is also used to report unrecaptured Section 1250 gain, backup withholding, non-dividend distributions (return of capital distributions), foreign tax paid and foreign source income.
The IRS requires payers to file 1099 DIV copy A and 1096 forms to their office. Payers can choose to mail paper forms to the IRS directly or to electronically file their 1099 Div forms. You can file electronically through the Filing Information Returns Electronically System (FIRE System) you will be required to have software that produces a file in the proper format. The IRS requires payers filing 250 forms or more to electronically file. This rule applies to each type of 1099 form separately.
1099 forms must be issued to recipients by January 31st of the following tax year. The recipient copy is 1099 Div copy B. The IRS requires electronically filed forms to be submitted no later than March 31st of the following tax in which payments were made.
Use 1099 Software to comply with federal submission standards as outlined in Pub. 1220. First-time filers will need to register with the IRS/FIRE System. The IRS will assign you a Transmitter Control Code. This is an identification code you will use when e-filing using the FIRE System. Apply for this code by filling out IRS form 4419.
The following steps are a general outline of how to use 1099 filing software to create a federally accepted e-file submission file.
A. Click company, new company, enter company name
B. In the next screen enter the company address, EIN and state ID if applicable
C. Click 1096 information (third tab) enter the contact persons name, phone number and email address. Enter the filers name if different from the company name. For instance the filers name may be different than the company if you are a tax preparer.
D. Click 1099 recipients, new recipient, enter the recipients Social Security Number, type of 1099 received, name and address.
E. Click 1099 forms. In this screen, to the left, you should see the recipient information already populated. On the right side of the screen you will enter totals in the boxes that apply to this recipient.
F. Create the e-file submission. In the 1099 W2 software click e-filing then choose 1099 Div forms. A box will pop up for you to enter the submitters information. Enter the submitters name, TCC, transmitters company name and address. Then enter the contact persons information including name, number and email address. The last item to complete is the location to where you want to save the submission file.
G. Once the submission file has been saved you will proceed to the IRS/FIRE website and efile 1099 DIV forms by uploading this file directly to the IRS. The IRS will send a confirmation that the file received.
