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Payables has predefined the region abbreviations and the descriptions for all U.S. States, the District of Columbia, and some U.S. Territories. Payables has also predefined the region codes for those tax regions that are participating in the Internal Revenue Service's current Combined Filing Program. You must enter a region code for all tax regions that you wish to use for the Combined Filing Program reporting and that Payables has not already defined. You cannot update the predefined region abbreviations, descriptions, or region codes.

You can use this window to define your income tax regions for those states that are participating in the Combined Filing Program. You can select one of these tax regions for each of your 1099 supplier sites in the Supplier Sites window. Depending on how you define your Payables options, Payables uses either the supplier site's tax region or the system default tax region as the default region for each of the invoice distributions for your 1099 supplier. When you submit your 1099 reports, Payables uses the tax region from the invoice distributions to determine to which tax authority Payables should report the payments.

In the United States, you usually define the various states as your income tax regions. If you are participating in the Combined Filing Program, the Internal Revenue Service then automatically forwards each state's 1099 B records to each state on the tape.

In this window, define your income tax regions so that they conform to the Internal Revenue Service codes. You can use the 1099 Supplier Exceptions Report to identify any 1099 suppliers with state abbreviations that do not conform to the income tax regions you define here.

Defining Income Tax Regions

Prerequisites

   If you are doing business within the United States, refer to federal or state tax publications to obtain information regarding the 1099 reporting requirements for each participating tax region. For example, you need to identify the reporting limits for each of your income tax regions. You also need to define region codes for all states that have recently started participating in the Combined Filing Program.

   Enable your Combined Filing Program Payables option. See: Payables Options.

   To define income tax regions:

1. In the Income Tax Regions window, enter the region Abbreviation you are defining or locate the region Abbreviation you are updating. Enter the region's Internal Revenue Service Code.

Enter a Description for the region if it is not predefined.

2. Enter for the Reporting Limit Amount the minimum amount Payables uses to determine whether to report on a supplier's payments. If you do not enter an amount, Payables assumes the limit is zero.

Select the Method that Payables uses to compare actual payments to the Reporting Limit Amount:

• Compare Individually. Compare to the Reporting Limit Amount the sum of payments for each 1099 MISC Income Tax type.

• Compare Sum. Compare to the Reporting Limit Amount the sum of payments for all 1099 MISC Income tax types.

• Same as Federal. Ignore the region Reporting Limit Amount, and instead use the Federal reporting limit, which Payables has predefined as $600.

3. Save your work.

See Also

1099 Reporting Overview