The IRS recently released a new update to Publication 1220, the specifications for 1099 series forms and other related forms. The primary updates were in response to several errors that had been noted in the September release. A detailed list of changes found in the most recent version follows:
• Form 1099-H: Health Coverage Tax Credit (HCTC) Advance Payments removed
• Once transmitter is approved, issuer does not need to reapply unless they have discontinued filing for three years instead of two years
• Form 4419 must be used to update for legal name changes now
• Passwords cannot be changed more than 1 time in a 24-hour period
• FIRE secret phrase must not contain spaces
• Field position 12-20, foreign entities not required to have a TIN
• Removed 1099-H Health Coverage Tax Credit (HCTC) from “A” Record
• Field positions 328-367 were labeled as “Blank”, and the instructions stated to “Enter blanks.” This section has been updated to state “Second Payee Name Line” for the title. The instructions text now states, “If there are multiple payees (for example, partners, joint owners, or spouses), use this field for those names not associated with the TIN provided in positions 12-20 of the “B” Record, or if not enough space was provided in the First Payee Name Line continue the name in this field. Do not enter address information. It is important that filers provide as much payee information to the IRS as possible to identify the payee associated with the TIN. See the Note under the First Payee Name Line. Left justify the information and fill unused positions with blanks.”
• Corresponding box in the “B” record diagram have been changed to reflect the change to “Second Payee Name Line”
• 1099-H Removed from listing of “B” Record pages. All sections shifted to account for removal.
• Field Position 548 separated from 548-662 blanks entry and made the FATCA Filing Requirement Indicator for Form 1099-MISC Payee “B” Record again. Field description states, “Enter “1” (one) if there is FATCA filing requirement. Otherwise, enter a blank.” 549-662 remain as blank spaces at length of 114 characters.
• Payee “B” Record for 1099-NEC has been updated for field position 547. NO longer reads “use Type of return “A” in Field Positions 26-27…” Now reads, “use type of return “NE” in Field Positions 26-27…”
• Field Positions 747-748 no longer blank. Now used for Combined Federal/State Code. Text reads: Enter the valid CF/SF Code if this payee record is to be forwarded to a state agency as part of the CF/SF Program. Enter the valid state code form Part A. Sec. 12, Table 1, Participating States and Codes. Enter Blanks for Issuers or states not participating in this program. Corresponding boxes in record diagram also updated. See 2nd image for each release.
• Possible omission error of number “1” in code section for Type of Wager Code for Field Position 547. Code “1” was previously listed for Horse Racetrack (or off-track betting of a horse track nature). That space is now empty.
• Missing record field positions for Payee “B” Record layout position chart
• Extension of time, Field Positions 6-14 – Sentence added to Field Description block: For foreign entities that are not required to have a TIN, this field may be blank; however, the Foreign Entity Indicator in position 187 must be set to “X.”
To view the complete Publication, click here.
