04-a-010 - Procedures for filing 2003 Form 1099 Information Returns (December 4, 2003) (Supersedes 03-a-011) (Superseded by 05-a-011)

DATE:	December 4, 2003
SUBJECT:	Procedures for filing 2003 Form 1099 Information Returns
EFFECTIVE DATE:	Immediately
A & R CONTACT:	Don Beck	(785) 296-7291	(don.beck@da.state.ks.us)
APPROVAL:
SUMMARY:	Procedures for Filing 2003 Form 1099 Information Returns

Agencies of the State of Kansas are considered to be a single payer by the Internal Revenue Service (IRS) and payment information is required to be filed by one transmitter. In addition, federal laws and regulations require the filing of information returns to be submitted by magnetic media or electronically. In order to comply with the reporting requirements of the IRS and to avoid the assessment of penalties, the Division of Accounts and Reports will transmit all 2003 calendar year 1099 information returns for the State of Kansas, electronically.

Some payments by state agencies are IRS reportable but are not included in the Statewide Accounting and Reporting System (STARS) or required data is not provided by STARS. These payments require unique reporting procedures. Such expenditures include certain interest payments, State Fair premiums and purchases of real property.

Locally administered interest payments exceeding $10 are to be reported on Form 1099-INT. An example of these payments is interest paid from trust funds to clients by institutions like the Department of Social and Rehabilitation Services and the Department of Corrections.

IRS regulations require the State of Kansas to report on Form 1099-S any purchases of real property exceeding $600. Additional requirements for this form include a description or address of the property and the closing date of the purchase transaction. (Rental and construction costs are not to be included).

State Fair premiums are to be reported on form 1099-MISC.

Procedures for handling 1099 information returns for calendar year 2003, for payments not issued directly through STARS, are as follows:

1. Agencies that have made expenditures as described, will be responsible for the preparation and delivery of the appropriate 1099 form to the payees prior to January 31, 2004. Do not mail form directly to the IRS or to the Kansas Department of Revenue. The payer's FEIN to use for the State of Kansas is 48-1124839. We no longer submit 1099's using 48-6029925.
2. Agencies reporting applicable purchases of real property may submit the IRS and /or the State of Kansas copies of the 1099-S forms to the address below, and the Division of Accounts and Reports will submit this information to the IRS.
3. For those agencies with other expenditures to report, the DA-43 form (http://www.da.ks.gov/ar/forms) <------- Broken link should be used if you have fewer than 20 records. If you have 20 or more records to submit they should be submitted as a text file in the attached format shown on the Non-STARS record layout form. You may submit a text file for fewer than 20 records if you want. All data should be remitted by February 16, 2004 to:

   Division of Accounts and Reports

   Central Accounting Services Section

   900 SW Jackson, Room 351-S, LSOB

   Topeka, Kansas 66612-1248

   Attention: Don Beck

4. If you are submitting a text file you may submit the file via a diskette or e-mail the file as an attachment to don.beck@da.state.ks.us.
5. If any agency finds it necessary to issue a corrected information return, the payee should be provided a copy as soon as possible. The IRS copy of the corrected form (marked "corrected") should be forwarded promptly to the Central Accounting Services Section of the Division of Accounts and Reports.

Business Procurement Card purchases made for 1099 reportable purchases to 1099 reportable vendors should be journal vouchered in STARS to the recipient's FEIN prior to December 31st. BPC 1099 reportable purchases not charged to the recipient's FEIN by December 31st must be reported to Accounts and Reports prior to January 15th, 2004 so adjustments may be made to the 1099 file prior to the 1099's being printed.

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Attachment: Non-STARS record layout (.pdf)