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USAS Procedures for 1099 Reporting for Calendar Year 2023

FPP E.001

Adjusting USAS Data

Why You May Need to Adjust USAS Data

Using IRS Publication 1220 as a guide, the 1099 INDICATOR field defaults based on the comptroller object used, but it is each agency’s responsibility to change this field when necessary. It is important to review the DAFR7940 verification report to ensure that your agency is reporting the correct payments.

To comply with the IRS 1099 reporting requirements, you may need to adjust the USAS 1099-related data. Adjustments may be necessary to correct discrepancies identified through the DAFR7940 report or during your daily operations. If you are unable to determine the 1099 reportability of a transaction, contact the IRS 1099 help line toll-free at (866) 455-7438.

When Adjustments Should Be Made

All adjustments must be made before requesting the 1099 information (DAFR 7950) in the chosen format.

Refer to the Timeline for State Agencies and Institutions of Higher Education for specific due dates.

Adjustments can be made any time prior to requesting the DAFR7950.

How to Adjust USAS Data

Your agency or institution may make 1099 adjustments online or in batch mode. To make corrections to USAS data, use transaction code (T-code) 480 – Adjust the 1099 reporting indicator.

Using T-Code 480 (Doc type “U”, Batch Type 3)

Use T-code 480 when:

  • Reclassifying one 1099 box indicator to another.
    Note: Use the appropriate D10 box number for any changes made after 12-31-2023. D10 box numbers are in the Comptroller Object Profile (D10) section of this notice.
  • A 1099 box indicator was not entered into the 1099 field in the original USAS transaction entry but an indicator was needed.
    – or –
  • To cancel a 1099 indicator when a payment should not be reported.

Use T-code 480 with an effective date of 12-31-23 when making corrections after Jan. 1, 2024. You can find a description of this T-code on the USAS 90 screen by entering 1099 in the KEYWORD field.

The required coding block for T-code 480:

  • Effective Date.
  • Document number/sfx (Doc type “U”, Batch Type 3).
  • Agency.
  • T-code.
  • Appropriation year (AY).
  • Comptroller object.
  • Reverse indicator (blank or R).
  • 1099 indicator (no default).
    Note: must be entered using the updated indicators located in the Comptroller Object Profile (D10) section of this notice.
  • Amount.
  • Vendor number/mail code.

All other elements are optional and will not affect the TINS 1099 table.

CAPPS logo

CAPPS agencies should make these adjustments directly in USAS.

To ensure the IRSRDF file includes all corrections, adjustments and cancellations must be made prior to running the DAFR7950 report that will print 1099 forms and/or generate the IRSRDF file.