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1099 Guidelines and Instructions 

Please Note: The following information is for 1099's being issued by the Office of Accounting. If you are trying to submit a 1099 to the State of Arkansas, please send it to

Department of Finance & Administration
Withholding Tax
PO Box 8055
Little Rock, AR 72203

For questions concerning W-2's or 1099s, please call 501-682-7290.

Instructions for 1099 Processing for Calendar Year 2013 Increased security measures prevent emails with attachments from being received by many agencies. Therefore, information will be provided on the Department of Finance & Administration’s website to inform agencies of important information about 1099 processing listed in the Forms Section.

Overview of the 1099 Process:
1099 MISCELLANEOUS FORMS are produced to satisfy Sections 6041 through 6050N of the Internal Revenue Code, which requires states and state agencies to file informational returns on reportable payment types of non-wage compensation paid to reportable payees. 
Responsibilities of the individual state agencies include but are not limited to the following:
• Determine which payments and payees must receive 1099’s.
• Ensure that reported amounts are correct.
• Provide corrected payment information to the DFA - Office of Accounting
• Provide corrected vendor information to the DFA - Office of State Procurement
The Office of Accounting is responsible for the following:
• Accumulate tax reportable vendors/vendor payments
• Printing and mailing of the 1099-Miscellaneous Forms
• Act as primary contact for vendor questions
• Printing and mailing of corrected 1099’s
• Electronic transmission of required 1099 Form reporting to the Internal Revenue Service (IRS).
• Processing of IRS “B Notices” for erroneous tax identification number/name matches.

Important notes to the 1099 process:

• 1099-Miscellaneous forms for the period January 1, 2013 through December 31, 2013 will be produced by the Department of Finance and Administration – Office of Accounting (DFA-OA) for all agencies covered by the State of Arkansas single taxpayer identification number – 71-0847443.
• Printing and mailing of 1099’s is the responsibility of DFA-OA.
• Accuracy of vendor master data is the responsibility of the agency.
• The State of Arkansas is no longer exempt from the Internal Revenue Service (IRS) penalties associated with incorrect 1099 reporting.  Penalties assessed by the IRS that are attributable to agency error will be charged to that agency.
• Agencies that have been using AASIS one-time vendors for tax reportable vendor payments must complete the attached spreadsheet and return it via email to DFA-OA at acct1099agencychange@dfa.arkansas.gov us by January 20, 2014.
• User agencies vendor payments should be reviewed by using the AASIS 1099 vendor report ZFI_1099.  Corrections should be completed in AASIS by January 20, 2014.  Any changes made after January 20, 2014 must be made in AASIS and the agency must contact DFA-OA to have changes made in the 1099 extract.
• Service Bureau agency vendor payments should be reviewed by the agencies and changes should be submitted to Service Bureau no later than January 20, 2014.  Any changes made after January 20, 2014 must be submitted to Service Bureau to be made in AASIS and the agency must contact DFA-OA to have changes made in the 1099 extract.
• If your agency has purchased property for the State without using an agent, then the State must report those payments on form 1099-S.  If your agency has any such payments, please email acct1099agencychange@dfa.arkansas.gov for assistance.
• Questions about the 1099 instruction package found on the DFA-OA website (http://www.dfa.arkansas.gov/offices/accounting/Pages/1099Guidelines.aspx) should be submitted to acct1099agencychange@dfa.arkansas.gov.
• Requests for changes/additions to AASIS vendor master data prior to January 20, 2014 should be submitted to the Department of Finance and Administration – Office of State Procurement (DFA_OSP) at AASIS-OSP@dfa.arkansas.gov  
• Requests for changes/additions to AASIS vendor master data after January 20, 2014 should be sent to DFA-OSP at the email address above and to DFA-OA at acct1099agencychange@dfa.arkansas.gov.
• Vendors calling in directly to agencies with questions concerning 1099’s should be referred to the DFA-OA answering service by calling the 1099 helpline at 1-800-714-9065.
• Agencies requesting correction/deletion of 1099’s for vendors after January 20, 2014 should submit requests to acct1099agencychange@dfa.arkansas.gov.
• Frequently asked questions (FAQ) will be compiled and placed on the DFA-OA website.

Timeline:

• January 1, 2014 – January 20, 2014 - Review and correct 1099 reportable vendor payments in AASIS by user agencies
• January 1, 2014 – January 20, 2014- Review of reports by Service Bureau agencies and correction of 1099 reportable vendor payments for Service Bureau agencies by the DFA- Service Bureau
• January 1, 2014 – January 20, 2014- Submission of spreadsheets for One-Time vendors by user agencies
• January 1, 2014 – January 20, 2014- Submission of spreadsheets for One-Time vendors by Service Bureau agencies
• January 21, 2014– Extraction of 1099 reportable payments by AASIS Support Team
• January 21, 2014 - Submission of Department of Human Services and Racing Commission 1099 information
• January 21– January 28, 2014 – Consolidation by federal tax identification number and preparation of Form 1099-MISC for mailing by DFA-OA
• January 30, 2014 – Initial mailing of 1099’s
• February 1, 2014 – Correction of mailed 1099’s begins
• March 30, 2014 – Submission of the initial IRS 1099 Electronic file
• September 30, 2014 – Submission of final IRS 1099 Correction file


Important Notes
 

  • 1099-Miscellaneous forms for the period January 1, 2013, through December 31, 2013, will be produced centrally by DFA-OA for all agencies covered by the state of Arkansas Taxpayer Identification Number 71-0847443. 
  • Printing and mailing of 1099’s for agencies that record their accounting records on AASIS is the responsibility of the Office of Accounting. Agencies are responsible for the maintenance and accuracy of their own vendor payment data. 
  • The State of Arkansas is no longer exempt from Internal Revenue Service penalties for incorrect 1099-Miscellaneous reporting. Penalties paid to the Internal Revenue Service that are attributable to agency error will be charged to that agency. 
  • Agencies that have been using AASIS one-time vendors for tax reportable vendor/vendors payments must be updated in AASIS by the agency instead of being submitted to DFA-OA by January 20, 2014. They will be included in the normal extract. 
  • Board member stipend payments should have been paid as wages and reported on a W-2. Any other payments to Board members should be reviewed to determine if a 1099 is necessary for the payments made. If you believe that you have 1099 reportable payments made to board members, please contact DFA-OA at 682-1675 and speak to John Lewis. 
  • All vendor payments should be reviewed by user agencies using the AASIS 1099 vendor report. Corrections should be done by agencies with on line access to AASIS. Service Bureau agencies must e-mail corrected information to the DFA-OA via the 1099 email address Acct1099AgencyChange@dfa.Arkansas.gov on the correction spreadsheet. 
  • If your agency has purchased real estate for the State without using an agent, the state must report this transaction on the form 1099-S.

1099 Miscellaneous Policy
It is the policy of the State of Arkansas to adhere to the rules and regulations as promulgated by the Internal Revenue Service within Publication 1220 as revised each Calendar Year.

1099 Miscellaneous Forms
1099 Miscellaneous Forms are produced to satisfy Sections 6041 through 6050N of the Internal Revenue Code, which requires states and state agencies to file informational returns on reportable payment types of non-wage compensation paid to reportable payees.

IRS Form W-9 is the foundation for meeting the requirements of the Internal Revenue Service. An IRS Form W-9 must be provided to the Office of State Procurement per their policy and procedures statement for all requested statewide vendor numbers.

User and Service Bureau Agencies included within the Statewide Federal Tax Identification Number 71-0847443 are responsible for providing accurate information for vendors and vendor payments for those vendors who must be reported on IRS Form 1099-MISC to the Department of Finance and Administration-Office of Accounting (DFA-OA). This includes reportable vendors and vendor payments, regardless of the book of record on which the information is maintained. Any penalties or assessments arising from inaccurate information provided by the agency will be charged back to the individual agency’s records. DFA-OA is responsible for the consolidation of vendor payments by payee tax identification number, printing, mailing and reporting of IRS Form 1099-MISC.

Additional detailed information for processing vendors/vendor payments may be found on the AASIS website.

User and Service Bureau Agencies that operate Independent Programs with their own individually assigned tax identification number are responsible for all tasks necessary to report IRS Form 1099-MISC under that assigned program Tax Identification Number.

Reporting Agencies cannot use the Statewide Federal Identification Number and are responsible to create and report IRS Form 1099-MISC under their own assigned Tax Identification Number. Reporting Agencies may use statewide vendor numbers, but these payments and vendors will automatically be excluded from statewide reporting for 1099 purposes by agency.

  • Questions about the 1099 process may be submitted by e-mail to: acct1099agencychange@dfa.arkansas.gov  
  • Agency changes should be submitted by e-mail to: Acct1099AgencyChange@dfa.Arkansas.gov 
  • Requests for changes or additions to AASIS Vendor Master Data should be submitted using the appropriate E-Form which may be found at Office of State Procurement. 
  • Questions may be addressed to aasis-osp@dfa.arkansas.gov
  • Vendors that call agencies with questions concerning 1099’s should be referred to our answering service 1099 hot line phone number 1-800-714- 9065. 
  • Agencies requesting correction to or deletion of 1099’s for vendors after January 14, 2014, should submit their request by e-mail to: Acct1099AgencyChange@dfa.Arkansas.gov 
  • Frequently asked questions (FAQ’S) are currently available at DFA Office of Accounting. 
  • E-mail addresses for all other items are contained within the appropriate section of the instructions.

1099-Miscellaneous forms for the period January 1, 2013, through December 31, 2013, will be produced centrally by DFA-OA for all agencies covered by the state of Arkansas Taxpayer Identification Number 71-0847443.