USAS Procedures for 1099 Reporting for Calendar Year 2023
How to Request the 1099 Verification Report (DAFR7940)
Overview of the DAFR7940
The DAFR7940 report summarizes all 1099 data that will be reported on the DAFR7950 (forms and report). Information on the DAFR7940 is sorted by TIN number and lists the following: document number, comptroller object code and 1099 indicator. Agencies should review this report for accuracy before requesting the DAFR7950.
The report also lists 1099 related warning and fatal error messages generated at the time the original transaction was processed.
When to Request the Report
You may request the DAFR7940 anytime during the calendar year. The last DAFR7940 to run prior to production of the DAFR7950 and/or the last adjustment of data determines the final information your agency will report to the IRS.
Procedure
Follow this procedure to request the DAFR7940:
Note: Instructions for requesting this report can also be found on the USAS News/Help Table (90) screen by entering DAFR7940 in the KEYWORD
field.
Step | Action |
---|---|
1 | Go to the USAS 91 screen. |
2 | Enter standard coding for:
|
3 | In the SPEC SEL 1 (LO) field, enter M (Misc.), I (Interest), N (Nonemployee Compensation) or B (All) for type of 1099. |
4 | Enter a valid value in the first and/or second positions of the SPEC SEL 1 (HI) field. The first position validates the threshold values. The allowable values are:
Note: Using the N value allows the production of a report showing all reportable transactions to payees regardless of whether they meet the reportable threshold. |
Note: If you would like to request all 1099 data, you may skip to step 7. If you would like to customize your report and only request certain data, continue to step 5.
Step | Action | ||||||||||||||||||||||
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5 | The second character of
* Note: Depending on the type of agency business, we recommend the agency carefully review transactions with TINS Ownership Types F and R to ensure proper reportability. |
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6 | In the COMP OBJECT field, enter a single comptroller object or range of codes, or leave the field blank for all codes to appear on the report. |
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7 | Press F6 to process. |
Note: Each time a report is requested, verify that the STATUS CODE
field is A (active). After the request runs through the batch cycle, the status indicator will reset to I (Inactive), which is not typical for reports.