Verifying 1099 Data Text Files
After you export 1099 data to a text file, correct any records, if necessary, and verify that the file contains the information that you intend to submit to the IRS. For electronic filing, you submit the text file electronically by using the Internet through the IRS FIRE system. The text file contains data from the 1099 Electronic Media table (F04515OW) and is written in ASCII format.
https://www.irs.govPrint the contents of the text file and use the document to verify that the text file contains the correct number of records and total amounts for the payers and the suppliers.
Specifically, you must verify this information:
The text file contains the correct number of records for each type of 1099 form.
The information for each record is correct.
The information in these fields is correct:
Tax ID number (TIN)
USD amounts
The information for each record type in this table is correct. If the total of one record does not match the total of another, the IRS will reject the electronic file and can impose penalties on your company.
Record Type
Description
T
The T record shows this data for the transmitter in the text file:
Payment year.
This is the year that you specified in the Write Media program (P04515).
Transmitter's TIN.
This is the TIN that you specified in the Address Book Revisions program (P01012).
Transmitter's name.
This is the name that you specified in the Address Book Revisions program (P01012).
Company name and mailing address.
This is the company name and mailing address that you specified in the P01012 program.
Contact name.
This is the 1099 contact name that you specified on the Who's Who form for the transmitter company.
Contact's phone number and 0extension.
This is the phone number that is associated with the 1099 contact name record on the Who's Who form for the transmitter company.
Vendor Indicator (this will be V for returns created with JD Edwards EnterpriseOne software).
For JD Edwards EnterpriseOne software, this field contains a V.
Number of B records.
The T record must be the first record on the tape, and the first A record must follow it.
A
The A record shows this data for each payer (company) in the text file:
1099 reporting year
Reporting entity's tax ID
Name/address
Type of 1099 return
Boxes reported
Each 1099 payer must have an A record in the text file.
B
The B record shows this data for each payee (supplier) in the text file:
Supplier name
Supplier address
Tax ID
Supplier number
Amount for each 1099 Box
CUSIP number (this is applicable only for 67 TOR records)
Each 1099 supplier must have a B record in the text file.
C
The C record shows the number of B records and the total of all of the amounts for each 1099 Box in the B records for the preceding payer (company). Each payer (company) must have a C record in the text file.
The IRS will reject the electronic file if, for a payer (company), the number of suppliers and total amount on the C record does not equal the number of suppliers and total amount on the B records. For example, if the B record contains 15 suppliers and a total of USD 10,000, the C record must contain 15 B records and a total of USD 10,000.
F
The F record shows the number of payers (companies) in the text file. The number of payers in the F record must match the number of A records.
K
The K record shows the total number of payees and the total payment amount for a state in the text file. Ensure that the state code in the text file is valid.
Each participating state has a separate K record.