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USAS Procedures for 1099 Reporting for Calendar Year 2023

FPP E.001

How to Request the Data Set Report (DAFR7950)

Agencies may choose to complete their 1099 processing internally instead of using USAS data. These instructions are for agencies that choose to use USAS data. Agencies should run the DAFR7950 one time only, and only after the agency has reviewed and corrected all transactions on the DAFR7940.

Electronic Data Files or Hard Copies?

The DAFR7950 data set report generates 1099 data for agencies to send to the IRS. Your agency can choose to receive this data in one of two filing formats:

Data File

If you choose to receive the 1099 data file, you must still create and send a hard copy form to the payee. Also, this data file is not formatted for the IRS FIRE system. This option is often used by agencies that are combining their USAS data with payment data from local funds.

Hard Copy

If you choose to receive 1099 data in hard copy form, USAS will generate two copies of Copy B. Send one Copy B to the payee and retain the other for your files. If you have fewer than 250 forms and are not transmitting electronically, your agency must generate Copy A to send along with Form 1096 to the IRS. For more information, See Section E: “Filing Returns with the IRS” in General Instructions for Certain Information Returns PDF.

If you choose to receive the hard copy forms, you will also receive the IRS Reportable Data File (IRSRDF) for use when filing electronically with IRS. The IRSRDF is formatted for the FIRE system.

Request the DAFR7950

To request the DAFR7950, follow all the steps to request the DAFR7940 verification report on the USAS Report Request Profile (91) screen, except:

  • Enter DAFR7950 in the REPORT ID field.
  • Use the SPEC SEL 1 field* to choose the preferred filing format for your agency data.

*The next section provides the procedure for using the SPEC SEL 1 field on the USAS Report Request Profile (91) screen to choose the preferred filing format for your agency data.

TEXAS S091        UNIFORM STATEWIDE ACCOUNTING SYSTEM        XX/XX/XX 01:22 PM
LINK TO:                 REPORT REQUEST PROFILE                           PROD
ACTION: R (A=ADD,   C=CHANGE,   D=DELETE, N=NEXT,   R=RECALL)
     AGENCY:         REQUESTOR:           REPORT ID: DAFR7950   REQUEST NO:
  APPN YEAR:            PERIOD:                   FY:        FREQUENCY: XXXXXXXX
LEVEL -   ORG:   PROGRAM:   OBJECT:    FUND:   NACUBO FUND:      GL ACCT:  
        GRANT:   PROJECT:      
AGENCY GROUP:           CONFIDENTIAL INFO:    ( P,T,B,N )
SPEC SEL -     
      AGENCY:                                 ORG CODE:
PROGRAM CODE:                              NACUBO FUND:
APPROP FUND:                                      FUND:
COMP OBJECT:                                AGY OBJECT:
GL ACCT:                                   AGY GL ACCT:
GRANT:                                         PROJECT:
SPEC SEL 1:                                 SPEC SEL 2:
1ST RUN DATE:          LINES:                            STATUS CODE: A
EFF START DATE: XXXXXXXX   EFF END DATE:              LAST PROC DATE:
VERIFY FREQUENCY DATE
F1-HELP    F3-END    F4-INTERRUPT   F6-PROCESS

The table below provides the values to be entered in the SPEC SEL 1 field to request the DAFR7950 in either of the two filing format options:

File Format Request Procedure
Option 1: Request a USAS-generated 1099 Data File only. Agencies paying out of state and local funds combine their USAS information with other payment information to comprehensively capture all 1099-reportable information. This file is different from the IRS Reportable Date File (see Option 2).
  1. Enter F in the SPEC SEL 1 field.
  2. Enter one of the following valid values in the SPEC SEL 2 field:
    • B for interest, miscellaneous data and nonemployee compensation.
    • M for miscellaneous data only.
    • N for nonemployee compensation.
    • I for interest only.
  3. Enter A in the STATUS CODE field.
Note: If you request a USAS-generated 1099 data file (SPEC SEL 1 = F):
  • The 1099 forms are not generated by USAS.
  • An IRS Reportable Data File (IRSRDF) is not created.
It is your agency’s responsibility to:
  • Review the USAS information to produce 1099 forms.
  • Produce an IRSRDF based on payments the agency determines are reportable.
Option 2: Request 1099 Hard Copies (Form 1099-MISC, 1099-NEC and Form 1099-INT).
  1. Enter R in the SPEC SEL 1 field. Entry in SPECIAL SELECT 2 is not allowed.
  2. Enter A in the STATUS CODE field.
Note: The R for hard copy defaults to M after the batch cycle has processed. The M indicates that your agency will receive the IRSRDF by the IRS determined deadline. See Cancelling an IRS Reportable Data File IRSRDF below if you do not wish to receive the IRSRDF.

Filing With the IRS

Agencies with 10 or more forms must file electronically with the IRS through the FIRE system.

Agencies filing fewer than 10 forms may choose to either file electronically or file hard copies with the IRS. Agencies that choose to file hard copies must create Copy A and submit with a Form 1096.

Per IRS instructions, if you are submitting hard copy 1099 forms to the IRS, Copy A must be completed using the 12-point Courier font and printed using black ink only.

Cancelling an IRS Reportable Data File (IRSRDF)

If you do not want to receive a copy of the IRSRDF after receiving the hard copy forms from the Comptroller’s office, you must:

  • Replace M with R in the SPEC SEL 1 field on the USAS 91 Report Request Profile screen.
  • Replace A with I in the STATUS CODE field on the USAS 91 Report Request Profile screen (inactivating the request so it doesn’t run again).
  • Press F6 to process inactivation and update your agency 91 Profile DAFR7950 Report Request.

This action notifies Comptroller’s office staff that your agency does not want an IRSRDF. The defaults will then appear as R in the SPEC SEL 1 field and I in the STATUS CODE field.