End of Year 1099-MISC Reporting changes
IRS Publication 1220 states a change for the 2016 tax year when reporting nonemployee compensation payments in Box 7 of the 1099-MISC tax form. If your Financial Institution has 1099-MISC forms with Box 7 information, they must be filed on or before January 31, 2017. In past years, these did not have to be filed until March 31st along with the other 1098/1099 tax forms.
To find out if your Financial Institution has Box 7 information, review the End of Year reports produced after the End of Year extract. If nonemployee compensation payments are being reported, verify the setting to create a separate file for 1099-MISC records is turned on in the End of Year parameters. The End of Year program that runs to create the government file will need to be executed with a specific option to generate a file of the 1099-MISC only records.
Peak Consulting provides on-site consulting services to Financial Institutions to maximize efficiency in their day to day processes. Peak also assists Financial Institutions with End of Year procedures and questions. Please contact us at firstname.lastname@example.org for more information.