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					                            WVFIMS Administrative Policy State ment Numbe r 35


SUBJ ECT:         PURCHA SING CA RD PURCHA SES A ND IRS FORM 1099 REPORTING

DATE:             January 20, 1999 (updated February 1, 2005)

PURPOS E:         To establish procedures for “Service” purchases using the Purchasing Card

PROCEDURE:

The purpose of the following policy is to provide guidance for the use of the State of West Virg inia Purchasing Card (Pcard )
and IRS Forms 1099 reporting. All other existing Pcard rules and regulations remain in effect.

The Internal Revenue Service (IRS) ru les and regulations require the issuance of IRS Forms 1099 to certain recip ients based
upon the types of payments made to these recipients and their business designation. If the issuer of IRS Form 1099, a state
agency, fails to co mply with IRS rules and regulations, the IRS can issue monetary and other penalties for non -compliance
and/or reporting.

For Pcard purchases, the detailed vendor information is not stored in WVFIMS in a format that permits IRS Forms 1099
reporting, as is the practice for WVFIMS Invoice payments. As a result of the inability to report Pcard purchases, there are
limitat ions on the type of purchases that may be made with the Pcard.

Goods may be purchased from any vendor. However, “Services” may only be purchased from a v endor who is a
governmental entity (GO), non-profit organization (NO), or corporation (CO). Corporat ion does NOT include medical
corporation (MC) or attorney corporation (AC).

You can inquire on the WVFIMS Vendor File to determine if you can use your Pca rd for “service” purchases. Each
WVFIMS Vendor has a business designation code which indicates their status for IRS Forms 1099 reporting. As a general
rule, “Service” purchases utilizing the Pcard may only be made for the follo wing business designations:

                                     GO       Governmental Entity

                                     NO       Non-Profit Organization

                                     CO       Corporati on

Note: Other restrict ions apply with the above designation codes, see page 2 of this policy.

“Service” purchases with the Pcard are NOT permitted with the fo llowing W VFIM S Vendor business designation codes
under any circumstances:

MC       Medical Corporation                  AC       Attorney Corporation                    IN   Individual
SO       Sole Proprietorship                  EM       Emp loyee                               PA   Partnership
ES       Estate/Trust

To determine if a vendor is eligible for “Serv ice” purchases with the Pcard, you should perform a WVFIMS Vendor Inquiry.
The following procedures will assist you in determin ing if the vendor may be used for “Serv ice” purchases.
                                    To access the WVFIMS Vendor Inquiry Screen

Fro m the W VFIMS Main Menu, type the option number for W VFIM S Inquiries and press <ENTER>
Fro m the W VFIMS Inquiries Screen, type the option number for Vendor Inquiry and press <ENTER>
Type the WVFIM S Vendor Identification Nu mber and press <ENTER>
                                                          <OR>
Type the partial name of the vendor and press <ENTER> to access a browse screen for your selection. Type the letter “S”,
for select, to the left of the desired vendor and press <ENTER>
                                                          <OR>
Type the FEIN/SSN of the vendor and press <ENTER>. You may be presented with a browse screen if mult ip le vendors
exist with the same FEIN/SSN. If so, type the letter “S”, for select, to the left of the desired vendor and press <ENTER>
You will be presented with the W VFIMS Vendor Inquiry Detail Screen


                                   WVFIMS VENDOR INQUIRY DETAIL SCREEN

 ID: FI#3004                                STATE OF W EST VIRGINIA                                            02/01/05
 WVFA278A                      FINA NCIA L INFORMATION MANA GEM ENT SYSTEM                                     14:48:52
                                     VENDORS - VENDOR INQUIRY DETAIL
  VENDOR ID: 0000123456
  NAM E: PURCHA SING STORE INC

  NEW VEND ID:               LAST UPDATED: 09/21/1998           BEP-W CC DEFAULT: N
  FEIN OR SSN: F (F OR S)    VENDOR STATUS : Y                  B/T CODE:
  FEIN SSN : 551234567       BRANCH CODE: 00                    B US INESS DES IGNATION: CO
  DOING BUSINESS AS:
  CONTA CT NAME(FIRST,M I,LAST): JOE FIMS
  PHONE NUMBER: 304 555-1234 EXTENSION: 123
  STREET ADDRESS: 2215 M ERCHANDISE ST                                 CITY: CHARLESTON
  ADDR TYPE: R (R OR O)     STATE: W V    ZIP -CODE: 25302 4326        COUNTRY: USA

  MAILING DATE: 11/05/97                               MAIL RESPONS E DATE: 05/13/1998
  OVERRIDE A DDRESS: N                                 SUBRECIPIENT: N
  NEXT: ___
  PF1 =HELP   PF3 =END          PF4 =M ENU        PF5 =PRINT W 9 REQ LETTER



The WVFIM S Vendor Inquiry Detail Screen enables you to inquire on WVFIM S vendor information which may be used as a
determining factor in qualify ing a vendor for “Service” purchases using the Pcard. The h igh -lighted areas above are
instrumental in the decision making process and are described below:

Vendor Status:            The vendor status MUST be Y for yes

Business Designation:     The vendor business designation MUST be either CO (Co rporation), NO (Non -Profit
                          Organization), or GO (Govern mental Entity) for you to be able to use the Pcard for “Serv ice”
                          purchases.

Mail Response Date:       The mail response date MUST be a valid date. This date indicates that a W -9 is on file fro m the
                          vendor. A W-9 is a payor’s request for Taxpayer Identificat ion number (FEIN/S SN). This
                          informat ion confirms the vendor’s business designation code, address, etc. Also, if you see a date
                          of 01/01/01, wh ich appears to be a valid date but is not for these purposes, then you CAN NOT
                          use the vendor for “Service” purchases, because a W -9 is not on file.
If ALL three of the criteria are met, then you are permitted to use the Pcard for “Service” purchases. Otherwise, you will n ot
be permitted to use the Pcard. If you have any questions concerning whether a vendor is eligib le for Pcard p urchases, if you
inadvertently use the Pcard to purchase “Services” from an inappropriate vendor, or if you would like to use a vendor who is
not in the WVFIMS Vendor File, p lease contact either your agency Purchase Card Coordinator or:


                                    Joan Chapman
                                    Depart ment of Admin istration
                                    Financial Accounting & Reporting Sect ion
                                    WVFIMS Vendor File

                                    2101 Washington Street, East
                                    Building 17, 2nd Floor
                                    Charleston, WV 25305

                                    Phone: (304) 558-4587

                                    Fax:     (304) 558-9173

                                    Email: jchapman@wvadmin.gov

				
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