electronic filing of 1099-R

[Belgarath]

Anybody know anything about these? I briefly skimmed the 1099 instructions and nothing jumped out at me, but I could have easily zipped right by. Basically, I wanted to find out if these can be filed electronically by the payor, and if so, what documentation still has to be sent to the participant. Thanks!

[Mike Preston]

Most 1099-R processing systems (I use Datair) provide information to their users that enable them to get up and running on electronic filing quickly. You still send the same form to the participant that you always did. There is no change there.

You apply to the IRS for a special ID number. When you run your software for the preparation of the 1099's you tell it the special ID number. The software then creates a file that you can send to the IRS. The IRS gives you a phone number for your computer to call and connect to the IRS' internal network (it doesn't work over the internet). You then transfer your file to the IRS. Check back a few days later and the IRS will provide you with an indication as to whether the file was accepted or not.

Send something to your client indicating that the IRS has accepted the filing.

Wait till next year and do it again.

[Belgarath]

Thanks Mike. I'm not involved with 1099's, so I didn't know diddly, and this helps.

[MGB]

Under JCWAA, you can now give the participant their 1099-R electronically, too (must have an affirmative election by the participant to receive it this way). This is effective with tax years ending after JCWAA (i.e., the 1099-R being filed after the end of 2002).

[Guest b2kates]

MGB, could you provide the citation for permitting the electronic distribution of 1099s under JCWAA

[Belgarath]

b2kates - I just had to look into this for another purpose. According to the Joint Committee on Taxation technical explanation report, it is Section 401 of the Act.