This article gives an overview of the 1099 process in Breeze.
New for 2022
Starting with the 2022 tax year, you can no longer file paper forms with the IRS (1096s and 1099s, copy A). You need to eFile these forms; however, you still need to generate hard copy forms for owners and vendors. For eFiling, you need a FIRE system transmitter control code from the IRS. For more information, go to .
Also, paper forms for owners and vendors need to be printed on blank paper. Preprinted forms do not work.
You do not need to purchase any tax forms but must have an IRS supplied FIRE system TCC (Transmitter Control Code), plain blank paper, and standard W-2 / 1099-MISC window envelopes to mail copy B to recipients.
Basic Workflow for 1099s
The basic workflow in Breeze is as follows:
Extract 1099 data.
Run reports to validate the extracted data.
Generate 1099 paper forms (Copy B) for vendors and owners.
E-file 1099 forms (Copy A) to the IRS.
Types of 1099 Data
On most of the 1099 screens, you can select different types of 1099 data to work with. Two of the screens are shown below.
The following table explains each data type:
NEC/MISC Vendor by Mgmt. | 1099 data for Vendors where the payer is the Property Management Company. (For generating 1099-NEC and/or 1099-MISC) |
NEC/MISC Vendor by Owner | 1099 data for Vendors where the payer is the Owner. (For generating 1099-NEC and/or 1099-MISC) |
MISC Owners by Mgmt. | 1099 data for Owners where the payer is the Property Management Company. (For generating 1099-MISC) |
Interest by Mgmt. | 1099 data for Interest where the payer is the Property Management Company. (For generating 1099-INT) |
Interest by Owner | 1099 data for Interest where the payer is the Owner. (For generating 1099-INT) |
We recommend that you go through the basic workflow (extract data, run reports, generate forms) for one data type at a time.
Plan Your Work
We recommend the following course of action:
Read the and make sure your DB is ready for 1099s.
Determine which data types apply to your business, and how you are going to file.
For each datatype, go through the basic workflow (extract data, run reports to verify the data, generate 1099 forms and electronic files).
Mail the paper forms to the vendors and owners.
Send the electronic files to the IRS.
Starting Breeze in the Middle of the Year
If you started using Breeze in the middle of the year, Breeze will not have a complete record of all the payments you made. In this case, you can use records and calculations made outside of Breeze, enter the data manually, and then use Breeze to generate the 1099 forms.
1099 Functions in Breeze
This section gives an overview of each 1099 menu item. (The menu is located at Accounting > IRS Forms.)
Update Payables For 1099 | As part of the 1099 process, you may need to look at individual transactions (payables) to determine which ones are included in 1099 calculations and which ones are not. On this screen, you can include payables and exclude them, as appropriate. |
Combined Federal/State Code | The IRS established the Combined Federal/State Filing (CF/SF) program “to simplify information returns filing for payers. Through CF/SF, the IRS electronically forwards information returns (original and corrected) to participating states” (IRS Publication 1220). You can use Breeze to submit 1099 data that the IRS can forward to participating states. By default, Breeze now recognizes participating states. |
Add 1099 Transmitter | Add a transmitter vendor to your DB -- a vendor that can submit e-Files to the IRS. A transmitter vendor is a vendor who has a Transmitter Control Code (TCC) from the IRS. You can set up your property management company as a transmitter vendor or you can use a third party vendor (typically a tax preparation company). |
Step 1 of 4 - | Prepare the 1099 data for e-filing and printing the forms. To extract the data, Breeze checks each payment record and calculates the totals that appear on each 1099. You can then run reports to check the data. |
Step 2 of 4 - Extracted Data Report | Run reports to verify the 1099 data that was extracted. You can use the report in different ways:
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Step 3 of 4 - Generate 1099 Forms | Generate paper 1099 forms. All Breeze clients need to generate 1099 paper forms for their owners and vendors. |
Step 4 of 4 -Generate e-File | Generate the electronic files that can be submitted to the IRS. Starting with tax year 2022, all clients will eFile Copy A forms with the IRS. |