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Los Angeles, CA (PRWEB)
August 09, 2017
1099 Pro, Inc., http://www.1099pro.com, recently released 1042-S Pro – 1042-S software for tax year for 2017. The 1099 Pro development team appears to be ahead of the pack with its efficient implementation of the many IRS form and compliance changes related to 1042-S reporting. With this early release, Withholding Agents can get a head start on inputting or importing 1042-S data by utilizing the 1042-S Pro business rules & validations – which are designed to help ensure proper IRS reporting.
The 2017 IRS compliance related changes are numerous and include both new and updated requirements. Most notably, a 10-digit unique form identifier is required on all forms in order to distinguish between multiple 1042-S records that are submitted by the same Withholding Agent. This requirement is present for both Original and Amended forms and is designed to distinguish which 1042-S record should be updated when the records submitted have the same TIN/Account. Fortunately, it appears that 1099 Pro’s 1042-S software auto-generates these fields as necessary. Amended 1042-S forms must also include an amendment number in addition to the unique form identifier number that is associated with the original form. 1042-S Pro also generates the amendment number, and sequentially updates any additional amendments, per IRS guidelines.
On a deeper level, the IRS also issued many IRS code changes for tax year 2017. Most notably, these are 1) QUALIFIED DERIVATE DEALERS (QDDs) – now face new withholding requirements including Chapter 3 Exemption and Status codes as outlined in Revenue Procedure 2017-15, 2) BOX 1 INCOME CODE 54 has changed from “Other Income” to “Substitute Payments – Interest from Certain Actively Traded or Publicly Offered Securities”, 3) INCOME CODE 23 “Gross Income – Other” may be appropriate to report payments of income if no other income code applies: Filers are encouraged to review Treasury Regulations section 1.1441-6(c)(2), 4) CHAPTER 4 EXEMPTION CODES now include a code for payments not subject to Chapter 4 withholdings and for which no other codes apply, 5) EXCLUDED PAYMENTS…