Pay-to Business Partners 1099 Details (tccom4526m000)

Field Information

Pay-to Business Partner

The pay-to business partner for which 1099-MISC income reporting is required.

1099 Name

The business partner's name.

Address Code

The address to be used for reporting 1099-MISC income for this business partner.

Note: 

The address code must have the correct 1099 name. Sometimes the name used for 1099-MISC income reporting is different than the usual business partner name. This is true if an individual is doing business under a fictitious business name.

Example

John Smith is doing business as JS Consulting. Payments are created in the name of JS Consulting. However, the but 1099-MISC forms must be filed under the name of John Smith.

Payee Name Control

The payee name-control must contain the first four significant characters of the payee's business name or surname. This control is used by the IRS to verify the business partner' tax ID.

Note: The payee name-control defaults to the first four characters of the business partner's name.

Foreign (non-U.S.) Entity

The foreign country indicator is required for the electronic filing of 1099 information.

If this check box is selected, it indicates that the payee is located in a foreign country.

Direct Sales Indicator

Indicates sales of $5,000 or more for consumer products to a person on a buy/sell, deposit/commission, or other commission basis for resales activities in any location except for a permanent retail establishment.

If you select this check box, LN prints an 'X' in box 9 of the 1099 paper form and flags the appropriate position during the 1099 electronic filing.

If you clear this check box, LN does not include the direct sales indicator on the paper form or during electronic filing of 1099 information.

Type of Tax ID

The Type of Tax ID field is required for the electronic filing of 1099-MISC Income information.

N/A

The type of tax ID number is unknown.

EIN

The pay-to business partner is a partnership or corporation, and the tax ID number is an employer-identification number.

SSN

The pay-to business partner is an individual, and the tax ID number is a social-security number.

Income Tax Reporting Site

The location where the 1099-MISC income must be reported.

Note: This is for information purposes only. This field has no impact on the 1099-MISC income forms or the process of electronic filing.

Income Tax Type

The supplier's type of tax ID. For example, the pay-to business partner can represent an individual person, a partnership, or a corporation.

Note: This field is for information purposes and has no impact on the 1099-MISC income forms or the process of electronic filing.

Account Number 1099

You can use this field to identify the business partner when reviewing the printed 1099-MISC forms. It is printed in the bottom left-hand corner of the 1099-MISC income form.

2nd TIN

IRS

If this check box is selected, an X will be printed in the 2nd TIN number box on the bottom of the 1099-MISC income form. This indicates that no more notices must be sent to the pay-to business partner.

If this check box is cleared, an X will not be printed in the 2nd TIN number box of the 1099-MISC income form. As a result, you will be notified if the TIN number of the pay-to business partner is incorrect.

State/Payer's State Number Box 12

The payer's state number is used to indicate your state taxpayer's identification number for the state where this pay-to business partner is located.

Note: The payer's state number is printed in box 12 of the 1099-MISC income paper form. It will not be included, if filing is electronic.

Reason for Payments

The reasons for payments to foreign business partners.