How do employers fill out 1099R (1099-R Forms)

This tutorial can be used by businesses and tax professionals wanting to fill out 1099-R forms (Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.).

This tutorial assumes that you have either downloaded a FREE demo of 1099R Software called W2 Mate, or you’ve already purchased W2 Mate. If you have not installed W2 Mate yet, please do so by downloading a FREE trial from the link below:

1099 Software FREE Download

Now to the steps for filling out 1099R forms:

1. Open W2 Mate software (W2 Mate prints 1099-R and other 1099 tax forms).
2. Navigate to the “1099 / 1098 Recipients” page.
3. Click the new “New 1099 / 1098 Recipient” button. This will bring up the new recipient dialog. Please fill out all information. You will need to select “Form 1099-R” as the type of 1099 forms received.
4. Repeat step 3 for each recipient you want to add.
5. Click on the “1099 & 1098 Forms” icon from the left toolbar. This will take you to the 1099s screen.
6. Under “Form Type” click select and change the form to 1099-R.
7. Fill out the money amounts for each 1099-R recipient.
8. Click Save before you move between records.
9. Click the print button. This will bring up the print 1099-R forms dialog.
10. Select the recipients you want to print and type of copy. You can print all copies on white paper (no need for laser forms) except for copy A which you need to print on pre-printed forms.

That’s it!

To learn more about W2 Mate visit the 1099 software page or visit http://www.realtaxtools.com/

Can I print 1099 DIV copy B on plain paper?

I get this question a lot from many business owners. The quick answer is Yes, you can use 1099 DIV Software in order to print a number of form 1099-DIV copies on regular white paper. I suggest using software called W2 Mate (http://www.w2mate.com/) which is capable of doing just that.

Now to the long answer. If you take a look at "IRS Publication 1179 General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S" you will see this paragraph:

"If you do not use the official IRS form to furnish statements to recipients, you must furnish an acceptable substitute statement. To be acceptable, your substitute statement must comply with the rules in this section. If you are furnishing a substitute form, see Regulations sections 1.6042-4, 1.6044-5, 1.6049-6, and 1.6050N-1 to determine how the following statements must be provided to recipients for most Forms 1099-DIV and 1099-INT, all Forms 1099-OID and 1099-PATR, and Form 1099-MISC or 1099-S for royalties. Generally, information returns may be furnished electronically with the consent of the recipient. See Section 4.5.1."

A substitute form recipient statement for Forms 1099-INT, 1099-DIV, 1099-OID, or 1099-PATR must comply with the following requirements:

• 1.Box captions and numbers that are applicable must be clearly identified, using the same wording and numbering as on the official form. Note. For Form 1099-INT, if box 3 is not on your substitute form, you may drop "not included in box 3" from the box 1 caption.
  



• 2. The form recipient statement (Copy B) must contain all applicable form recipient instructions provided on the front and back of the official IRS form. You may provide those instructions on a separate sheet of paper.
  



• 3. The form recipient statement must contain the following in bold and conspicuous type: This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported.
  



• 4. The box caption "Federal income tax withheld" must be in boldface type on the form recipient statement.
  



• 5. The form recipient statement must contain the Office of Management and Budget (OMB) number as shown on the official IRS form. See Part 5.
  



• 6. The form recipient statement must contain the tax year (for example, 2011), form number (for example, Form 1099-INT), and form name (for example, Interest Income) of the official IRS Form 1099. This information must be displayed prominently together in one area of the statement. For example, the tax year, form number, and form name could be shown in the upper right part of the statement. Each copy must be appropriately labeled (such as Copy B, For Recipient). See Section 4.4 for applicable labels and arrangement of assembly of forms. Note. Do not include the words "Substitute for" or "In lieu of" on the form recipient statement.
  



• 7. Layout and format of the form is at the discretion of the filer. However, the IRS encourages the use of boxes so that the statement has the appearance of a form and can be easily distinguished from other non-tax statements.