enc3 Specifications for 1099 Reporting

Transcription

1 Form enc Format ( ) North Carolina Department of Revenue P. O. Box Raleigh, NC (877) toll-free enc3 Specifications for 1099 Reporting Submit all information returns to North Carolina, whether NC income tax has been withheld or not withheld for the following forms: 1099-R Distributions from Pensions, Annuities, Retirement or Profit-sharing, etc MISC Miscellaneous Income 1099-G Certain Government Payments NC-1099PS Personal Services Income Paid to a Nonresident (treat as 1099-MISC return) NC-1099-ITIN Compensation Paid to an ITIN Contractor (treat as 1099-MISC return) NOTE: Form W-2G Certain Gambling Winnings (NC Lottery Commission only) must still be submitted via CD as this form is not yet available for the new electronic filing methods. Part VII of Session Law includes changes to the withholding law which are designed to increase tax compliance and help the Department combat tax fraud. The changes affect the manner in which Form NC-3 and the Department's copies of W-2s, 1099s and other withholding statements are filed and when they are due. The changes are effective for taxable years beginning on or after January 1, For tax year 2015, the changes apply only to information returns required to be filed in As amended, G.S requires Form NC-3 and copies of withholding statements to be filed on or before January 31 of the succeeding year and in electronic format as prescribed by the Secretary of Revenue. The Secretary may, upon show of good cause, waive the electronic submission requirement. To implement this legislation, the Department is currently developing three new electronic filing (enc3) options for taxpayers: (1) web file upload (2) bulk transmittal, and (3) web online entry (not available for Jan 2016 filing). These new methods will replace the current filing options of filing via paper. The Department encourages electronic filing (web file upload or bulk transmittal are preferred); however CD submission will still be accepted. Paper filing option should only be utilized if the taxpayer does not have access to a computer. Bulk Transmittal All NC-3, W-2, and 1099 formats can be found on the TIGERS website. Web File Upload See below for the Web File Upload specifications. The file must meet the requirements for filing Federal 1099 information as specified in Internal Revenue Service Publication Although North Carolina participates in the IRS Combined Federal/State Filing 1

2 Program, returns which report NC income tax withheld must be filed directly to North Carolina Department of Revenue. CD ROM and Paper Please refer to the DP-43 and posted on the department s website at Web File Upload Specifications for 1099s From the NC DOR webpage, you ll be able to access the enc3 Application. NC DOR is utilizing the same W-2 and 1099 file layouts for Tax Year 2015 which were used in Tax Year The specifications for these files can be found at the following location ( NC-3 information will be manually keyed into the website, but NC DOR will accept file uploads for W-2s and 1099s (including 1099R, 1099MISC, 1099G, NC-1099-ITIN, NC-1099-PS). The file creation process for the taxpayer will be the same for Tax Year 2015 as it was for Tax Year 2014, but the taxpayer will now have the ability to upload an electronic file to the NC DOR website rather than copy the file(s) to a CD. 1. Refer to IRS Publication 1220 and create the file as follows: Transmitter T Record Location Field Length Specification 1 Record Type 1 T 2-5 Payment Year 4 YYYY Transmitter s TIN Test File Indicator 1 Enter T if Test Data, otherwise leave blank Transmitter Name 40 Alpha Numeric Transmitter Name 40 Left Justify Company Name Company Name Address City State 2 Postal Abbreviation Zip code 9 Zip Contact Name Contact Phone Number & Ext Contact Record Sequence Vendor Indicator 1 V Vendor I In-house Vendor Name Vendor Mailing Address Vendor City Vendor State Vendor Zip Code Vendor Contact Name Vendor Contact Phone & Ext 15 Payer A Record Location Field Length Specification 1 Record Type 1 A 2

3 2-5 Payment Year 4 YYYY Combined Federal/State Filer 1 1 if participating, blank if not Payer s Taxpayer Id. Number (TIN) 9 Federal EIN/TIN, Type of Return 2 Left-justify, blank fill A 1099-MISC, NC-1099PS or NC-1099-ITIN R W Form W-2G F 1099-G Amount Codes 16 Pub 1220 or 7 for NC-1099PS or NC-1099-ITIN First Payer Name Line Second Payer Name Line Transfer Agent Indicator 1 1 = yes, 0 (zero) = no Payer Shipping Address Payer City Payer State Payer Zip Code 9 left-justify, blank fill Blank or CR/LF 2 Payee B Record 1 Record Type 1 B 2-5 Payment Year 4 YYYY Corrected Return Indicator 1 G - 1st Correction C 2 nd Correction Blank for Original Return Note: C, G, and non-coded records must be reported using a separate Payer A Record 11 Type of TIN Payee s TIN Payment Amount 1 12 Unemployment Compensation (1099-G) Rents (1099-MISC) Gross Distribution (1099-R) Gross Winnings (Form W-2G) Payment Amount 2 12 State or Local Income Tax Refunds, credits, or Offsets (1099-G) Royalties (1099-MISC) Taxable Amount (1099-R) Payment Amount 3 12 Other Income (1099-MISC) Capital Gain (1099-R) Payment Amount 4 12 Federal Income Tax Withheld (1099-G, 1099-MISC and 1099-R) Payment Amount 5 12 Reemployment Trade Adjustment Assistance (RTAA) programs (1099-G) Fishing Boat Proceeds (1099-MISC) Employee Contributions (1099-R) 3

4 Payment Amount 6 12 Taxable Grants (1099-G) Medical and Health Care Premiums (1099-MISC) Net Unrealized Appreciation (1099-R) Payment Amount 7 12 Agriculture Payments (1099-G) Nonemployee Compensation (1099_MISC) Gross Income Paid for Personal Services in North Carolina (NC-1099PS) Gross Income Paid for Personal Services in North Carolina (NC-1099-ITIN) Payment Amount 8 12 Substitute Payments (1099-MISC) Other (1099-R) Payment Amount 9 12 Market Gain (1099-G) Fill with zeroes (1099_MISC) Total Employee Contributions (1099-R) Payment Amount A 12 Crop Insurance Proceeds (1099-MISC) Traditional IRA/SEP/SIMPLE Distribution (1099-R) Payment Amount B 12 Excess Golden Parachute Payments (1099-MISC) Payment Amount C 12 Gross Proceeds Paid to Attorney (1099-MISC) Payment Amount D 12 Section 409A Deferrals (1099-MISC) Payment Amount E 12 Section 409A Income (1099-MISC) Payment Amount F 12 November Payments (1099-K) Exempt Interest Dividends (1099-DIV) Payment Amount G 12 December Payments (1099-K) Specified Private Activity Bond Interest Dividends (1099-DIV) First Payee Name Line Second Payee Name Line Payee Mailing Address Payee City Payee State Payee ZIP Code 9 left-justify, blank fill Distribution Code (1099-R only) 2 Enter the appropriate Distribution Codes as required in Pub for 1099-R only NC Personal Services (NC1099PS) 2 PS NC-1099PS NC Personal Services (NC-1099-ITIN) IT NC-1099-ITIN State Withholding Account Number Vested (1099R-NC Dept of State Treasurer) 1 V ONLY for NC Dept of State Treasurer State Income Tax Withheld 12 4

5 Combined Federal/State Code 2 blank if not participating, 37 for NC Blank or CR/LF 2 Records and fields not specifically mentioned may be considered optional. (Record length must be 750). 2. Alphanumeric fields should be left justified and blank filled. Amount fields are right-justified, zero-filled, dollars and cents, decimal implied. 3. Multiple payers/companies may be filed on a volume. A single completed Form NC-3 Annual Withholding Reconciliation must be included in the package for each payer. 4. Amount fields (Payment Amounts 1-9 and A-E plus State Income Tax Withheld) are required. Where dollar amounts are zero, enter zeros. Blanks are not a valid entry. 5