Broker-Held Escrow 1099 Reporting After the 12th month (December) is closed, all payee 1099 balances for the current 1099 reporting year will be zero. Select the 1099 Menu option (ES-9) from the Escrow Menu and the following menu will display:
Options 1-3 are applicable to 1099 Miscellaneous and Interest forms.
Options 10-13 are only available if your company processes 1099-S forms for proceeds from real estate transactions.
Complete 1099 List (ES-9-1) This option allows you to print a list of all payees that will receive a Miscellaneous or Interest 1099 for the 1099 reporting year and the specified number of 1099 forms that are required. Amounts for Escrow 1099s are NOT stored in the Payee file. This program reads the Escrow History file and accumulates the records that are flagged for 1099 miscellaneous or interest. The payee name, EIN, and TIN are printed from the Payee file. The 1099 Type & Box come from the Transaction Code. If the 1099 Type & Box are incorrect, change it in the Transaction Code record. NOTE: If the Use Payee 1099 Flag field in the Escrow Parameters is Y, the program will look at the 1099 Type field in the Payee file - a 1099 will only be generated if the 1099 Type field is M or I. The report can be printed in detail or summary. For 1099 Miscellaneous forms - amounts will be reported for Box 1, Box 7, and Box 14 in their respective columns. All other box amounts will print in the “Other Boxes” total. NOTE: Box 14 - The program does not check the minimum levels, if there is an amount in Box 14, it will be printed in it’s respective column as well as be included in the “Other Boxes” total. The report totals by payee and a separate totals page prints at the end of the report. The option is available to output the report to printer or file. Select this option and the following screen will display:
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1099 REPORTING YEAR The current year is displayed - press ENTER to accept. All records paid in the selected year will be printed. NOTE: If you do not accept the current reporting year and enter a different year, the detail for that year will be printed; however, it cannot be compared to the current reporting year amounts.
M(MISC) I(INTEREST) B(BOTH) Enter one of the following: •
M - Print payees flagged to receive a miscellaneous 1099
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I - Print payees flagged to receive an interest 1099
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B - Print payees flagged to receive either a miscellaneous or interest 1099
B(BAL > ZERO) E(> MIN 1099 EARN) Enter one of the following •
B - Print only payees that have 1099 earnings greater than zero.
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E - Print only payees that have 1099 earnings over the minimum amounts. NOTE: 1099 Miscellaneous, Box 14 - The program does not check the minimum amounts, if there is an amount in Box 14 the payee will be printed.
D(DETAIL) OR S(SUMMARY) Enter one of the following: •
Enter D to print the detailed information for each payee. The escrow history record number will also be printed.
•
Enter S to print only the payee information and accumulated total 1099 amount.
PRINT ADDRESS Enter Y to print the payee’s address or N to exclude the address.
SET UP FOR BATCH PRINT MODE Enter Y(yes) or N(no).
OUTPUT OPTION Enter P(printer) or F(file).
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Payee File Maintenance (ES-9-2) This option allows you to make changes to payee information that is printed on 1099 forms without having to exit and change the information using the Payee File option on the Broker-Held Escrow File Maintenance Menu. Any changes made in this option are recorded in the Payee file. Make necessary changes to the following fields: federal identification number, type of TIN, 1099 type, 1099 box number, W9 on file, corrected 1099, mark 2nd TIN box, combined filing code, and DBA (if applicable). Select the Payee File Maintenance option and the following field will display:
CATEGORY Enter one of the following categories: • • • • • • • • • • • • •
A - all categories BK - brokers BY - buyers IC - insurance companies MC - mortgage companies OT - “other” payees SL - sellers T - trade vendors TC - title companies N - enter a payee number EC - escrow companies (displays based on parameters) EO - escrow officers (displays based on parameters) SA - settlement attorneys (displays based on parameters)
Once the category has been entered, you are prompted to enter up to 30 characters of the payee’s name to begin the scroll or press ENTER to start the scroll alphabetically at the beginning of the file.
The payee’s address displays at the bottom of the screen when the cursor is positioned on a payee.
Press F5 to change the payee’s 1099 information. Following is an example:
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•
If you are using the IRS TIN Matching program and uploaded the results from the IRS into DPN, the EIN/SSN Verified (yes or no) and Verified Date, and Auxiliary Verified (yes or no) and Verified Date fields will be populated accordingly.
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If you are not using the IRS TIN Matching upload program, but you verified the payee’s SSN or Federal ID number (Auxiliary) on the IRS’ website, you may enter that the SSN or Federal ID was verified and the verified date.
If the payee auxiliary fields are set, the Change Auxiliary Record prompt will display as shown in the above screen. If Y is entered to change the auxiliary information, the DBA fields will display on the screen. Following is an example:
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Escrow History F/M (ES-9-3) This option allows you to view and/or change the escrow payee’s detail PRIOR to building the 1099 file. You can view the detail from a beginning date range. The first screen displays the record number, transaction date, month and year paid, escrow number, transaction code, 1099 year, 1099 type (M or I), box number, and amount: Select the Escrow History F/M option, and enter the payee. The detail information will display similar to the following example:
The 1099 Type & Box come from the Transaction Code. If the 1099 Type & Box are incorrect, change it in the Transaction Code record.
Press F5 to make changes to the check number, check date, 1099 year, description, and transaction code fields:
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F/M 1099S Fields (ES-9-10) Sellers that will receive a 1099-S form must be flagged in this option to receive the form. This information must be entered PRIOR to building the 1099 file. The 1099 build program does not read the escrow history file to accumulate 1099-S amounts. The 1099-S amounts must be entered in this option. The 1099 build program will read the amounts entered in this option and generate the 1099-S forms for payees that meet the limit requirements. The name, address, and ID number are generated from the payee file. Enter the Escrow number and the following screen will display:
PRINT 1099-S FORM Enter one of the following: •
Y - Print a 1099-S form for the seller.
•
N - Do not print a 1099-S form.
1099 REPORTING YEAR The current 1099 reporting year must be entered. This field is required or else the record will not be included in the 1099 build program and a 1099-S form will not be printed.
EXEMPT 1099S Enter one of the following: •
Y - The seller is exempt from filing a 1099-S form.
•
N - The seller is not exempt from filing a 1099-S form.
1099S CERTIFICATION ON FILE? Enter one of the following: •
Y - The seller has a 1099-S certification on file.
•
N - This seller does not have a 1099-S certification on file.
CHECK BOX 4? Enter one of the following: •
Y - Mark Box 4 indicating the transferor received or will receive property or services as part of the consideration.
•
N - Do not mark Box 4.
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MULTIPLE FORMS? Enter one of the following: •
Y - Multiple 1099-S forms will be printed to multiple payees.
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N - Multiple 1099-S forms will not be printed.
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NOTE: If 1099-S forms will be printed for multiple payees for a single escrow, a record will need to be set up for each payee and the amount of the proceeds for all forms must total the sales price.
SALE NO. The associated sale number will default. Accept the sale number or leave blank if there is no associated sale number. The Sales Price and Close Date from the sales file will display and cannot be changed. However, if the sale number field is blank, you will be prompted to enter the Sales Price and Actual Close Date. After entering the information the Enter Y to change, N to reenter prompt will display. If the information is correct enter Y. You will be prompted to review the seller information - enter Y. If a seller is not on file you will be prompted to add a seller or select an existing seller from the list. The following examples show the seller is on file with function keys allowing you to add an additional seller (F3), change seller information (F4), and select a seller from the seller file (F5) – the F10 function key is different depending on how the Multiple Forms field is answered. Both examples are shown below. If the Multiple Forms field is N, the F10 key allows you to change the primary seller flag if there is more than one seller.
If the Multiple Forms field is Y, the F10 key prompts you to enter the gross proceeds and print the 1099-S form as shown in the screen on the bottom:
PRINT 1099S FORM? Enter Y to print a 1099-S form for the seller.
GROSS PROCEEDS Enter the seller’s gross proceeds.
Enter Y to add the record – the cursor will return to the Payee window and the responses entered will display in the 1099 S and Amount fields. ES 1099 Reporting
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Reporting Year List (ES-9-11) This report prints a list of escrows by reporting year. Escrows that were flagged in the F/M 1099S Fields option (option 10 on the Escrow 1099 Menu) will be included. The report can be printed in escrow number, property address, or class order. The option is available to include or exclude the seller’s information. Report totals include number of escrows and total sales price. The report includes the following information: •
Escrow number
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1099S - Flagged to receive 1099-S form? Y or N
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Certification on File - Y or N
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Exempt Box 4 - Y or N
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Multiple forms - Y or N
•
Property address
•
Sale number
•
1099 reporting year
•
Close date
•
Gross proceeds
•
Mortgage type
•
Totals for number of escrows and total sales price
If printing the seller information, the following information is also included: •
Seller’s payee number
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Seller name and address
•
Seller Tax ID number and Type of TIN: S(social security number) or E(employer identification number)
•
W9 on file - Y or N
•
Seller’s gross proceeds (only applicable if multiple sellers) - NOTE: If the gross proceeds for the seller do not equal the gross proceeds for the escrow, a message to that effect will print below the seller’s address
•
Totals showing number of 1099-S forms required, and Box 2 totals
Select this option and the following screen will display:
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C(CURRENT COMPANY) A(ALL COMPANIES) Enter C to print escrow records for the current company only or A to print escrow records for all companies.
OPTIONS A(ALL) F(FLAGGED FOR 1099S FORMS) Enter A to print all escrows regardless if they have been flagged to receive a 1099-S form, or F to only print escrows that are flagged to receive a 1099-S form.
1099 REPORTING YEAR Enter the current reporting year. NOTE: The year may be left blank to allow you to find escrows that do not have a reporting year (the reporting year is zero). Use option 10 (F/M 1099S Fields) to correct the year - if the year is not corrected those escrow records will not be included in the build program and 1099-S forms will not be produced.
PRINT ORDER E(ESCROW NUMBER) A(ADDRESS) C(CLASS) Enter E to print the report in escrow number order (you will be prompted to enter a beginning/ending escrow range or leave blank for all), A to print the report in property address order, or C to print the report in class order you will be prompted to enter a beginning/ending class or leave blank for all.
PRINT SELLER INFORMATION Enter Y to print the seller information (recommended) or N to exclude the seller information.
Eligibility List (ES-9-12) This report is used to print a list of escrows/sellers that are eligible to receive a 1099-S form. The report includes the following information: •
Escrow number
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1099S - Flagged to receive 1099-S form? Y or N
•
Certification on File - Y or N
•
Exempt Box 4 - Y or N
•
Multiple forms - Y or N
•
Property address
•
Sale number
•
1099 reporting year
•
Close date
•
Gross proceeds
•
Mortgage type
•
Totals for number of escrows and total sales price
If printing the seller information, the following information is also included: •
Seller’s payee number
•
Seller name and address
•
Seller Tax ID number and Type of TIN: S(social security number) or E(employer identification number)
•
W9 on file - Y or N
•
Seller’s gross proceeds (only applicable if multiple sellers) - NOTE: If the gross proceeds for the seller do not equal the gross proceeds for the escrow, a message to that effect will print below the seller’s address
•
Totals showing number of 1099-S forms required, and Box 2 totals
Select this option and the following screen will display: ES 1099 Reporting
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PRINT ORDER E(ESCROW NUMBER) A(ADDRESS) C(CLASS) Enter E to print the report in escrow number order (you will be prompted to enter a beginning/ending escrow range or leave blank for all), A to print the report in property address order, or C to print the report in class order you will be prompted to enter a beginning/ending class or leave blank for all.
OPTIONS A(ALL) F(FLAGGED FOR 1099S FORMS) Enter A to print all escrows regardless if they have been flagged to receive a 1099-S form, or F to only print escrows that are flagged to receive a 1099-S form.
REPORTING YEAR Enter the current reporting year. NOTE: The year may be left blank to allow you to find escrows that do not have a reporting year (the reporting year is zero). Use option 10 (F/M 1099S Fields) to correct the year - if the year is not corrected those escrow records will not be included in the build program and 1099-S forms will not be produced.
PRINT SELLER INFORMATION Enter Y to print the seller information (recommended) or N to exclude the seller information.
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Missing EIN/W9 List (ES-9-13) This report is used to print a list of sellers that do not have a federal identification number (employer identification or social security number) in the Payee file for the current company or all companies that process Broker-Held Escrow. NOTE: Print this report and correct any missing federal identification numbers PRIOR to building the 1099 file. The report prints the following information for each payee: •
If printing the seller information, the following information is printed: o Seller’s payee number, name, and address o Seller’s Tax ID number and Type of TIN: S(social security number) or E(employer identification number) o W9 on file - Y or N and date sent/received o Seller’s gross proceeds (only applicable if multiple sellers) - NOTE: If the gross proceeds for the seller do not equal the gross proceeds for the escrow, a message to that effect will print below the seller’s address.
•
If printing the escrow information, the following information is printed: o Escrow number; o 1099S - Flagged to receive 1099-S form? Y or N o Property address o Close date o Multiple 1099S forms? Y or N o Gross proceeds
Select this option and the following screen will display:
C(CURRENT COMPANY) A(ALL COMPANIES) Enter C(print missing EIN’s for the current company) or A(print missing EIN’s for all companies).
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1099 REPORTING YEAR Enter the current reporting year. NOTE: The year may be left blank to allow you to find escrows that do not have a reporting year (the reporting year is zero). Use option 10 (F/M 1099S Fields) to correct the year - if the year is not corrected those escrow records will not be included in the build program and 1099-S forms will not be produced.
OPTIONS A(ALL) F(FLAGGED FOR 1099S FORMS) Enter A to print all escrows regardless if they have been flagged to receive a 1099-S form, or F to only print escrows that are flagged to receive a 1099-S form.
PRINT ORDER E(ESCROW NUMBER) A(ADDRESS) C(CLASS) Enter E to print the report in escrow number order (you will be prompted to enter a beginning/ending escrow range or leave blank for all), A to print the report in property address order, or C to print the report in class order you will be prompted to enter a beginning/ending class or leave blank for all.
COMPARE W9 FLAG? If Y is entered in this field and a seller is flagged to receive a 1099-S, has a federal ID number or social security number entered, but the W9 on File field in the Payee file is N, the seller will still be printed.
PRINT SELLER INFORMATION Enter Y to print the seller information (recommended) or N to exclude the seller information.
PRINT ESCROW INFORMATION Enter Y to print the escrow information (recommended) or N to exclude the escrow information.
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