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USAS Procedures for 1099 Reporting for Calendar Year 2023

FPP E.001

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:
  • ACTION – Use code for desired result.
  • AGENCY – Agency number will pre-populate.
  • REQUESTOR – Authorized User ID.
  • REPORT ID – DAFR7940.
  • REQUEST NO – Any two-digit value (01-99).
  • PERIOD – Any value between 01–12 (representing calendar months).
  • FY – The last two digits of the 1099 calendar year (for 2023, enter 23).
  • FREQUENCY – Daily or MMDDYYYY. You are only allowed to have one active report request at a time. If you have multiple active requests, you will receive a DAFR7940 for the first available request only. The other requests will not process if that request is successfully processed. However, the next report requested will be generated the following workday.
  • CONFIDENTIAL INFO – N.
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:
  • Y (threshold values shown on report equal $600 or more), or
  • N (all dollar amounts are shown ± $600).

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
5

The second character of SPEC SEL 1 (HI) allows you to request only certain ownership types. The following is a list of the allowed ownership code values for the SPEC SEL 1 (HI) field:

Value Ownership Type
E State Employee
I Individual Recipient
P Partnership
S Sole Ownership
N Other
A Professional Association
L Texas Limited Partnership
F* Financial Institution
R* Foreign Corporation
Blank All

* 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.

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.
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.