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Glenn Hegar  ·  Texas Comptroller of Public Accounts

USAS Procedures for 1099 Reporting for Calendar Year 2017

Issued: May 12, 2004
Updated: Nov. 3, 2017 – View Changes

FPP E.001

Table of Contents

Overview

Applicable to

State agencies and institutions of higher education

Summary

Agencies and institutions often pay individuals who are not their employees for services rendered, and sometimes pay interest to individuals. If your agency or institution has paid a non-corporate payee a total of $600 or more for services or interest during a calendar year, you must report the payment(s) to the Internal Revenue Service (IRS) on a Form 1099-Miscellaneous (MISC) or Form 1099-Interest Income (INT) and send Form 1099 Copy B to the payee. Generally, payments to corporations are not reportable.
Exception: Legal and medical services are reportable to the IRS for corporations. USAS will force 1099 Indicator A (Attorney Fees) or 6 (Medical Services) when a payment is made to a payee with ownership type C (Corporation), O (Out of State Corporation) or T (Texas Corporation) AND the comptroller object code used to make the payment has a default 1099 indicator A or 6 on the USAS D10 Profile (comptroller object profile). (See 2017 General Instructions for Certain Information Returns PDF regarding payments to corporations for legal and medical services.)

To assist agencies and institutions with filing 1099s for calendar year (CY) 2017, the Uniform Statewide Accounting System (USAS) captures 1099-related data and by request generates the following reports:

  • DAFR7940
    • 1099 verification reports to help agencies analyze 1099 data prior to requesting the DAFR7950
  • DAFR7950 – agencies choose from one of the following filing formats:
    • 1099 data file – agencies must print hard copies to send to vendor
    • Hard copy forms with the IRS Reportable Data File (IRSRDF)

Important for CY 2017 1099 reporting:

  • Agencies must file with the IRS by Jan. 31, 2018, if reporting in Box 7 on the 1099- MISC
  • DAFR7950s can be requested any business day beginning Jan. 2–30, 2018
  • USAS-generated 1099 forms are addressed to the payee’s mail code based on the last 1099-eligible payment made to that payee by the paying agency

Note: Agencies can look up the mail code used to generate a 1099 form in the Texas Identification Number System (TINS). For instructions, see 1099 MC Lookup in the Payee Mail Code Information (PYADDR) section TexPayment Resource.

Legend

CAPPS logo

This icon indicates information applicable to the Centralized Accounting and Payroll/Personnel System (CAPPS).

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Timeline for State Agencies and Institutions of Higher Education

Nov. 10, 2017–Jan. 30, 2018

Request the 1099 Verification Report (DAFR7940) using the USAS Report Request Profile (91) screen. See How to Request the 1099 Verification Report (DAFR7940). The DAFR7940 may be requested on a daily basis at any time during the year.

Review the DAFR7940 and make necessary adjustments to 1099 data in USAS. See Adjusting Your USAS Data. All USAS data adjustments must be made by Jan. 30, 2018.

Jan. 2–30, 2018 (USAS Processing Schedule)

You may enter a request on the USAS 91 screen for the DAFR7950. If you select hard copy 1099s to be printed, they will be available for pick up at the Comptroller’s office the following business day.

Jan. 23–30, 2018

USAS generates the IRSRDF beginning Jan. 23-30. Agencies may run the DAFR7950 requesting the IRSRDF any business day in January. The file will be available through File Transfer Protocol (FTP) on Jan. 24 for all agencies that made the request on or before Jan. 23. For agencies that request the file Jan. 24-30, the file will be available the following business day. To prevent duplicate reporting, do one of the following: upload only ONE complete DAFR7950 report to the IRS using the Filing Information Returns Electronically (FIRE) system (even if multiple reports were requested) OR mail only ONE set of Copy A 1099 forms along with Form 1096 to the IRS.

Jan. 30, 2018

This is the last day you can make adjustments in USAS to the 1099 reportable data that is reflected on the IRSRDF.

This is also the last day the Comptroller’s office can receive and process Profile Change Requests updating the USAS Titles Profile (D53) screen to include agencies’ and institutions’ Transmitter Control Codes (TCCs). Any changes made after this date will not be reflected on the IRS reportable data file.

Jan. 31, 2018

This is the deadline for agencies to furnish 1099s to recipients. Forms must be postmarked on or before this date.

This is also the deadline for agencies to report to the IRS the 1099-MISC with income in Box 7. Hard copy forms must be postmarked by this date. Electronic files must be submitted to the IRS FIRE system by this date. The comptroller’s office recommends that agencies meet the January 31 deadline for all forms since almost all agencies will be reporting in the 1099-MISC Box 7.

First-time Electronic Filings

If your agency is filing with the IRS electronically for the first time, you’ll need to obtain a transmitter control code (TCC) from the IRS. Here’s how:

  1. Submit the IRS Form 4419 – Application for Filing Information Returns Electronically (FIRE) PDF to the IRS at least 30 to 45 days prior to the 1099 filing deadline. USAS Procedures for 1099 Reporting for Calendar Year 2017 (FPP E.001) includes Form 4419 and procedures for updating the USAS Titles Profile (D53) screen.
  2. When you receive your TCC, email expenditure.assistance@cpa.texas.gov to request an update to the D53 profile. Include your agency name, number and the TCC in the request.

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How to Request the 1099 Verification Report (DAFR7940)

Overview of the DAFR7940

The DAFR7940 report summarizes all of the 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 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 2017, enter 17)
  • 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 SPECIAL SELECT 1 (LO) field, enter M (Misc.), I (Interest) or B (Both) for type of 1099.
4 Enter a valid value in the first and/or second positions of the SPECIAL SELECT 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 stop here. Skip to the last step and press F6 to process. If you would like to customize your report and only request certain data, continue to step 5.

Step Action
5

The second character of SPECIAL SELECT 1 (HI) allows you to request only certain ownership types. The following is a list of the allowed ownership code values for the SPECIAL SELECT 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 TIN 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.

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Adjusting Your USAS Data

Why you may need to make adjustments to your USAS data

To comply with the IRS 1099 reporting requirements, you may need to make adjustments to your 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, please 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 your 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 make adjustments to your USAS data

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

Using T-code 480 (Doc type "U", Batch Type 3)

You should use T-code 480 when:

  • Reclassifying one 1099 box indicator to another,
  • 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 12-31-17 when making corrections after Jan. 1, 2018. You can find a description of this T-code on the USAS 90 screen by entering 1099 in the KEYWORD field.

Here is 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; must be entered)
  • 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.

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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 SPECIAL SELECT 1 field* to choose the preferred filing format for your data.

*The next section provides the procedure for using the SPECIAL SELECT 1 field on the USAS Report Request Profile (91) screen to choose the preferred filing format for your 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 )
SPECIAL SELECTS -     
      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 SPECIAL SELECT 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 SPECIAL SELECT 1 field.
  2. Enter one of the following valid values in the SPECIAL SELECT 2 field:
    • B for interest and miscellaneous data
    • I for interest only
    • M for miscellaneous data only
  3. Enter A in the STATUS CODE field.
Note: If you request a USAS-generated 1099 data file (SPECIAL SELECT 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 and Form 1099-INT).
  1. Enter R in the SPECIAL SELECT 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 250 or more returns must file electronically with the IRS through the FIRE system.

Agencies filing fewer than 250 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.

Cancelling an IRS Reportable Data File (IRSRDF)

If you do not want to receive a copy of the IRSRDF after receiving your hard copy forms from the Comptroller’s office (due to filing fewer than 250 Forms 1099), you must:

  • Replace M with R in the SPECIAL SELECT 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 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 SPECIAL SELECT 1 field and I in the STATUS CODE field.

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USAS Criteria for 1099 Information Reporting

Overview

Certain payments are reportable to the IRS on Form 1099-MISC. USAS generates the reports, forms and the IRS reportable data file.

You have the option of overriding USAS defaults to meet your particular requirements. In addition, you still have the option of internally capturing 1099-related data. Agencies and institutions of higher education that capture their own data have the option of suppressing the error messages related to 1099 data. See warning messages WR1 and ER1 under USAS 1099 Overrides, Warnings and Fatal Errors. However, the default 1099 indicators will appear in the agencies’ transactions.

A transaction’s reportability is determined by the value of the 1099 indicator either entered by the agency and institution or inferred from the comptroller object. Three criteria in USAS are used to determine reportability:

  • Transaction Code Decision Profile (28A)
  • Texas Identification Number System (TINS) Ownership Code
  • Comptroller Object Profile (D10)

Note: If an employee died during calendar year 2017, agencies and institutions are responsible for reporting on Form 1099-MISC the accrued wages, vacation pay and other compensation paid to the estate or beneficiary of the deceased employee. Much of this payment information is not captured in USAS but can be found in your agency’s or institution’s payroll records.

Transaction Code Decision Profile (28A)

This decision profile determines if the transaction is 1099 reportable. The valid values of the 28A are:

N Transaction is not 1099-reportable
R Transaction is 1099-reportable, either entered or inferred
I 1099 indicator must be entered, cannot be inferred
Blank Comptroller object dependent (Refer to the D1Ø Comptroller Object Profile screen)

TINS Ownership Code

Ownership codes subject to reportability are:

E State Employee
I Individual Recipient
P Partnership
S Sole Ownership
A Professional Association
L Texas Limited Partnership
F* Financial Institution
R* Foreign Corporation
N Other (This code may require your agency or institution to do additional research to identify a specific ownership type.)

* Note: Depending on the type of agency business, we recommend the agency review transactions with TIN Ownership Types F and R to ensure proper reportability.

Comptroller Object Profile (D1Ø) for 1099-MISC

The valid 1099 indicators with box limits for 1099-MISC are:

1 Rents (Box 1)
2 Royalties (Box 2)
3 Other income (Box 3)

Note: If a payment to an attorney for legal services is $600 or more and you are not able to determine the exact dollar amount being paid to the claimant and the claimant’s attorney, the payment (gross proceeds) is considered reportable to the 1099-MISC Box 3.

4 Federal income tax withheld (Box 4)
5 Fishing boat proceeds (Box 5 – any amount)
6 Medical and health care payments (Box 6)
7 Non-employee compensation (Box 7)
8 Substitute payments in lieu of dividends or interest (Box 8)
9 Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient) for resale (Box 9)
0 Crop insurance proceeds (Box 10)
C Reportable, cannot be inferred
N Not reportable
A Attorney’s fees in connection with legal services (Box 14)

Note: If a payment to an attorney for legal services is $600 or more and you are able to determine the exact dollar amount being paid to the attorney and the parties involved (claimants), the payment is considered reportable to the 1099-MISC Box 14. (These payments are coded with an A in USAS and reported to Box 14 on the 1099-MISC form.)

Comptroller Object Profile (D1Ø) for 1099-INT

The valid 1099-INT indicator with box limits for 1099-INT is:

I Interest Income (Box 1)

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USAS 1099 Overrides, Warnings and Fatal Errors

Overriding the 1099 indicator

USAS infers the 1099 indicator from the D1Ø profile if the T-code and the TINS ownership type are flagged as 1099 reportable. An agency or institution may override the inferred 1099 indicator by entering the 1099 indicator value directly on the transaction. You can enter a 1099 indicator on transactions for vendors that are not normally reported in order to make the specific transaction reportable. In addition, transactions normally reportable can be flagged as not reportable by entering an N in the transaction’s 1099 REPORTABLE INDICATOR field.

Agencies or institutions submitting transactions via input records may override the 1099 indicator by entering a 0 through 9 or N in position 166 of the transaction detail record. Otherwise, a blank space should be entered. Any other value (including null characters) will cause an error.

CAPPS logo

CAPPS agencies can override the 1099 indicator sent to USAS by checking the OVERRIDE USAS 1099 WITHHOLDING INDICATOR on the Supplier’s Identifying Information tab and using an account with a 1099 Account Attribute set with the override value. This is used when the 1099 indicator is always overridden for that Supplier and Account combination.

Warnings

When a warning is received, the transaction will post if otherwise error-free. These warnings are to prompt the user to verify the entered 1099 indicator and, if a mistake was made, to change or omit the entered 1099 indicator.

The following warnings regarding the 1099 indicator can be received:

WK1 A 1099 indicator was entered on a transaction that contains an ownership code of a vendor who is normally not reportable (such as a corporation).
WK2 The 1099 indicator entered on a transaction is not the normal default value for the entered comptroller object.
WK3 A 1099 indicator was entered on a transaction that has a comptroller object that is not normally reportable.
WR1 The 1099 indicator must be entered when using this specific comptroller object and cannot be inferred. The default value will be a warning message. This error can be changed to a fatal error or be suppressed by overriding the error severity by requesting a change to the agency DØ2 profile (data-related errors, position 16).
WR3 Allowable values for the IRS indicator 1 through 9.
WRB The 1099 validation requires a lookup to the Texas payee table in TINS using the vendor number and the vendor suffix. This warning message is issued when the vendor number and suffix are not found in the Texas payee table.

Fatal errors

When one of these messages is received, the transaction did not post. The following fatal errors regarding the 1099 indicator can be received:

ERA A vendor number is required on the transaction for 1099 indicator validation.
ERB The entered vendor number is not valid.
ERC The 1099 indicator must be entered when using this T-code and cannot be inferred.
ER1 Same as WR1 on Page 15, except the DØ2 profile was requested and changed to fatal on the DATA RELATED ERRORS field (position 16).
ER2 This T-code is not 1099-reportable.
ER3 An entered 1099 indicator must be 0 through 9 or N.

Note: When entering a 1099 indicator on the online transaction screen, the indicator remains in the field when the F6 key is pressed. If this 1099 indicator does not apply to the subsequent transaction, the 1099 indicator should be “blanked out” to allow the system to default the 1099 indicator based on the D1Ø profile.

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USAS Screen Reminders

Agency Profile (D02) screen

Use this screen to verify your agency’s or institution’s address and the phone number of a contact who can answer or refer 1099 inquiries to someone in your agency/institution.

Titles Profile (D53) screen

Use this screen to verify your nine-digit TIN. This screen is also used to verify your five-character IRS transmitter control code (TCC).

Note: To check the TIN, enter 1099 in the TABLE ID field and agency or institution number in the KEY field. To check the TCC, enter IRSX in the TABLE ID field and agency or institution number in the KEY field.

Comptroller Object Profile (D10) screen

Use this screen to view the 1099 indicator on comptroller object codes.

If you encounter problems

If the information in the USAS screen reminders is incorrect or not showing and you need to have it entered, please call Joe Pacheco at (512) 936-6211 or email usas.maintenance@cpa.texas.gov.

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Comptroller Objects by 1099–INT and 1099–MISC Indicators

Overview

This list was developed to help determine which comptroller objects are considered 1099–reportable. The list also represents how USAS 1099 reporting defaults are set. It is not a comprehensive list, and the absence of a code from the list does not indicate that it is not reportable. There may also be payments that fall into a comptroller object that triggers a 1099 indicator, but are not 1099–reportable. Your agency is responsible for the data it reports to the IRS.

The 1099 INDICATOR field defaults based on the comptroller object used, but it is each agency’s responsibility to change this field when necessary. This is why it is important to review the DAFR7940 verification report to ensure that your agency is reporting the correct payments. Agencies and institutions should use a 1099 indicator assigned to a comptroller object, but they still have discretion to use another valid 1099 indicator.

Comptroller Objects by 1099–INT Indicator

IRS Indicator I: Interest Income

7241 JUDGMENT INTEREST
7250 LEGISLATIVE CLAIMS INTEREST
7806 PROMPT PAY INTEREST
7811 INTEREST ON REFUND OR CREDIT OF TAX FEE
7812 INTEREST ON PROTEST PAYMENTS

Comptroller Objects by 1099–MISC Indicator

IRS Indicator A: Attorney Fees

7225 SETTLEMENTS AND JUDGMENTS – ATTY FEES

IRS Indicator 1: Rent

7401 RENTAL OF RADIO TOWERS
7406 RENTAL OF FURNISHINGS/EQUIPMENT
7411 RENTAL OF COMPUTER EQUIPMENT
7415 RENTAL OF COMPUTER SOFTWARE
7421 RENTAL OF REFERENCE MATERIAL
7442 RENTAL OF MOTOR VEHICLES
7443 RENTAL OF AIRCRAFT–EXEMPT
7444 CHARTER OF AIRCRAFT
7445 RENTAL OF AIRCRAFT
7449 RENTAL OF MARINE EQUIPMENT
7461 RENTAL OF LAND
7462 RENT OF OFFICE BLDG/OFFICE SPACE
7468 RENTAL OF SERVICE BUILDINGS
7470 RENTAL OF SPACE
7522 TELECOMM–EQUIP RENTAL

IRS Indicator 3: Other Income

7024 TERMINATION PAY – DEATH BENEFITS
7221 JUDGMT/SETTLEMT – PRE-LITIGATION – NO ATTORNEY GENERAL APPROVAL REQUIRED
7226 JUDGMT/SETTLEMT – CLAIMANT/OTHER LEGAL FEE
7229 SETTLEMENTS AND JUDGMENTS – CLAIMANT & ATTORNEY
7237 PAYMENT OF CLAIMS FROM TRUST
7697 GRANTS – PUBLIC INCENTIVE PROGRAMS

IRS Indicator 6: Medical and Health Care

7248 MEDICAL SERVICES
7661 MED SVS – NURSING HOME PROGRAMS

IRS Indicator 7: Non-Employee Compensation

7201 MEMBERSHIP DUES
7202 TUITION–EMPLOYEE TRAINING
7203 REGISTRATION FEES–EMPLOYEE TRAINING
7204 INSURANCE PREMIUMS
7205 EMPLOYEE BONDS
7206 SERVICE FEE PAID TO THE LOTTERY OPERATOR
7207 LOTTERY INCENTIVE BONUS
7210 FEES AND OTHER CHARGES
7211 AWARDS
7218 PUBLICATIONS
7219 FEES FOR RECEIVING ELECTRONIC PAYMENTS
7223 COURT COSTS
7224 WITNESS FEES AND ALLOWANCES
7227 MISC CLAIMS ACT PAYMENTS
7228 LEGISLATIVE CLAIMS
7231 WORK–COMP/MED SERV & ATTNY PMT
7232 WORK COMP–SIP–MED SERV & ATTY PMT
7234 COMPENSATION FOR CRIME VICTIMS
7235 COMPENSATION TO VICTIMS OF CRIME AUXILIARY PAYMENTS
7236 CRIME VICTIMS EXPENSES
7238 FOREIGN OFFICE ACTIVITIES
7239 CONSULTANT SERVICES–APP BY GOV OFC
7240 CONSULTANT SERVICES–OTHER
7242 CONSULTANT SERVICES–COMPUTER
7243 EDUCATIONAL/TRAINING SERVICES
7244 INSURANCE PREMIUMS & DEDUCTIBLES — NO APPROVAL RQD.
7245 FINANCIAL AND ACCOUNTING SERV
7247 HEARINGS OFFICERS–PREAPP–OFC OF ST ADM HRNG
7249 VETERINARY SERVICES
7252 LECTURERS–HIGHER EDUCATION
7253 OTHER PROFESSIONAL SERVICES
7254 OTHER WITNESS FEES
7255 INVESTMENT COUNSELING SERVICES
7256 ARCHITECTURAL/ENGINEERING SERV
7257 LEGAL SVCS–APP BY OFC ADM HEARINGS
7258 LEGAL SERVICES
7259 RACE TRACK OFFICIALS
7260 LOTTERY RETAILER COMMISSIONS
7262 PERS PROP–MAINT & REPAIR/COMP SFTWRE–EXP
7263 PERS PROP–MAINT & REPAIR/AIRCRAFT–EXP
7266 RP–BUILDINGS/MAINTENANCE & REPAIR–EXP
7267 PERS PROP–MAINT & REPAIR-COMP EQUIP–EXP
7270 RP–INFRASTRUCTURE/MAINT & REPAIR–EX
7271 RP–LAND/MAINTENANCE & REPAIR–EXP
7272 HAZARDOUS WASTE DISPOSAL SERVS
7273 REPRODUCTION & PRINTING SERVSNG
7274 TEMPORARY EMPLOYMENT AGENCIES
7275 COMPUTER PROGRAMMING SERVICES
7276 COMMUNICATION SERVICES
7277 CLEANING SERVICES
7278 PLACEMENT SERVICES
7280 CLIENT–WORKER SERVICES
7281 ADVERTISING SERVICES
7282 PETROL TANK CLEANUP REIMBURSE
7283 WASTE TIRE RECYCLING PROGRAM
7284 DATA PROCESSING SERVICES
7286 FREIGHT/DELIVERY SERVICES
7292 DIRECT PAYMENTS–STATEWIDE TECH. CENTER
7295 INVESTIGATION EXPENSES
7297 EMERGENCY ABATEMENT RESPONSE
7299 PURCHASED CONTRACTED SERVICES
7325 SERVICES FOR WARDS OF THE STATE
7336 RP–FACILITIES & OTHER IMPROVEMENTS–CAP
7338 RP–FAC & OTHER IMPROV/MAINT & REPAIR–EXP
7340 REAL PROPERTY & IMPROVEMENTS–EXP
7343 RP–BUILDING IMPROVEMENTS–CAP
7344 LEASEHOLD IMPROVEMENTS–CAPITALIZED
7345 RP–LAND–CAPITALIZE
7346 RP–LAND IMPROVEMENTS–CAP
7347 REAL PROP/CONSTRUCT IN PROGRESS/HWY–CAP
7348 RP–LAND/HIGHWAY–RIGHT-OF-WAY–CAP
7354 LEASEHOLD IMPROVEMENTS–EXPENSED
7355 INTANGIBLE ASSETS–LAND USE RIGHTS–TERM–EXPENSED
7356 RP–INFRASTRUCTURE–CAPITALIZE
7357 RP–INFRASTRUCTURE/PRESERVE COST–CAP
7358 RP–INFRASTRUCTURE/PRESERVE COST–EXP
7359 INTANGIBLE ASSETS–PATENTS AND COPYRIGHTS–CAPITALIZED
7360 INTANGIBLE ASSETS–PATENTS AND COPYRIGHTS–EXPENSED
7361 PERSONAL PROPERTY–CAPITALIZE
7362 INTANGIBLE ASSETS–TRADEMARKS–CAPITALIZED
7363 INTANGIBLE ASSETS–TRADEMARKS–EXPENSED
7367 PERSONAL PROPERTY–MAINTENANCE AND REPAIRS
7368 PERSONAL PROP–MAINT & REPAIR/MTR VEHICLE
7369 WORKS OF ART & HISTORICAL TREASURES–CAP
7390 INTANGIBLE PROPERTY–COMPUTER SOFTWARE/INTERNALLY GENERATED–CAPITALIZED
7396 TXDOT TOLL ROAD EXP–PRELIM ENGINEERING
7397 TXDOT TOLL ROAD EXP–CONSTRUCTION
7398 TXDOT TOLL ROAD EXP–CONSTRUCTION ENGINEERING
7399 TXDOT TOLL ROAD EXP–RIGHT OF WAY
7512 PERSONAL PROPERTY–TELECOM EQUIPMENT–CAP
7514 RP–INFRASTRUCTR/TELECOMM–MAINT & REP–EXP
7624 GRANTS TO INDIVIDUALS
7643 OTHER FINANCIAL SERVICES
7703 PURCHASE OF WATER RIGHTS
7809 OTHER FINANCING FEES

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Transaction Codes That Require 1099 Indicators

Overview

This list was developed to help determine which T-codes are considered 1099-reportable. It is not a comprehensive list, and the absence of a code from the list does not indicate that it is not reportable.

T-codes with 1099 indicators

The list includes (but is not limited to):

154 NSF CHECK–REFUND OF EXPENDITURE
180 RECORD REFUND OF EXPENDITURE
181 REFUND OF EXPENDITURE–SUSPENSE FND DEPOS
182 REFUND OF EXPENDITURE–AGY FND DEPOSIT
192 RECEIPT A/R NSF CHECKS–REFUND OF EXPEND
205 SUBGRANTEE AWARD–ENCUMBRANCE
206 ADJUST SUBGRANTEE AWARD–ENCUMBRANCE
210 ESTABLISH ORIGINAL ENCUMBRANCE
213 ESTABLISH ENCUMBRANCE–PRE–ENCUMBERED
214 ADJ ORIGINAL ENC–ADD NEW SFX RECORDS
216 ADJ ORIGINAL ENC EXISTING SFX ONLY
217 CANCEL ORIGINAL ENCUMBRANCE
220 CANCEL ORIGINAL PRE–ENCUMBRANCE
225 ESTABLISH VOUCHERS PAYABLE
228 VOUCHERS PAYABLE PRE–ENCUMBERED
231 VOUCHER PAYABLE–ENCUMBERED
232 VOUCHERS PAYABLE–AGY FUNDS DISBURSEMENT
233 V/P SUMMARY PAYEE AGENCY FND DISBURSEMEN
234 V/P SUMMARY PAYEE SUSPENSE FND COLLECTNS
235 VOUCHERS PAYABLE–SUSPENSE FND COLLECTION
236 RECORD CONTRACT PAYABLE RETAINAGE–ENCUMB
238 V/P PREPAID ITEMS–PROPRIETARY FUNDS
239 V/P CONSUMABLE INVENTORY–PROPRIETARY FND
240 VOUCHER PAYABLE–SUBGRANTEE ADVANCE
241 V/P MERCHANDISE INVENTORY–PROPRIETARY FD
242 V/P CAPITAL LEASE PRINCIPAL–GOVERNMENTAL
243 V/P CAPITAL LEASE PRINCIPAL–PROPRIETARY
244 V/P BOND PRINCIPAL PAYMENT–PROPRIETARY
245 V/P EXPENDITURE SUMMARY PAYEE NUMBER
248 VOUCHERS PAYABLE–CREDIT MEMO
249 V/P CONTRACT PAYABLE RETAINAGE
260 VOUCHERS PAYABLE–PURCHASE ACC. INT/DIV
261 INVESTMENTS, LOAN REC, ASSETS (PROP FUND)
263 CREATION/INCR TO IMPR, PTY TRVL CASH ACCT
388 TO RECORD MANUAL EXP WARRANT EXPEDITES
389 TO RECORD MANUAL REF OF REV WT EXPEDITES
407 EXPENDITURE TRANSFERS–OUT
408 EXPENDITURE TRANSFERS–IN
904 PAYMENT REIMBURSEMENT VENDOR
915 TINS EXPENDITURE PAYEE CORRECTION–OUT
916 TINS EXPENDITURE PAYEE CORRECTION–IN
951 WARRANT CANCELLATION–EXPENDITURES
954 WARRANT CANCELLATION–SUSPENSE FND COLLEC
955 WARRANT CANCELLATION–AGY FUNDS RECEIPTS
956 WARRANT CANCELLATION–CREDIT MEMO

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Changes to this document
11/03/2017 Updated dates for new year and edited for clarity
11/04/2016 Updated dates for new year and added new IRS reporting deadline
11/13/2015 Updated dates for CY 15; added CAPPS information
11/07/2014 Updated dates for CY 14 and edited FPP for clarity
11/15/2013 Updated dates for new year and updated section on DAFR7950 to match Web-based training
09/06/2013 Updated associated “USAS 1099 Web-Based Training”
11/02/2012 Updated dates for new year and made edits for clarity
01/13/2012 Added information on 1099 Mail Code Lookup option in TINS
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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