6039 Compliance -Read
As amended by Section 403 of the Tax Relief and Health Care Act of 2006,
6039 requires corporations to file an information return with
the IRS, in addition to providing employees with an information statement,
following a stock transfer. Account Ability complies with these amendments
by including electronic and plain paper filing for Form
3921, Exercise of an Incentive Stock Option Under Section
422(b), and Form 3922,
Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under
Section 423(c). The Import
Mapping Utility facilitates the job of importing data from
spreadsheets, delimited text files and data extractions from Equity Edge®
by E*TRADE Corporate Services.
Section 6050W Compliance -
Under new section 6050W, any payment settlement entity making payment to
a participating payee in settlement of reportable payment transactions must
make a return for each calendar year to be filed with the Service, and furnish
a statement to the participating payee, setting forth the gross amount of
such reportable payment transactions, as well as the name, address, and
taxpayer identification number (TIN) of the participating payees. Form
1099-K, Payment Card and Third Party Network Transactions,
is a new information return that payment settlement entities will use to
report the gross amount of payment card or third party network transactions.
Client (Filer) Support
Depending upon the type of returns to be filed, a filer can be a Payer (1099-MISC,
1099-DIV, 1099-INT, 1099-OID, 1099-PATR, 1099-B, 1099-G, 1099-Q, 1099-R,
1099-LTC, W2G), a Lender (1099-A, 1098, 1098-E), a Creditor (1099-C), a
Filer (1097-BTC, 1099-K, 1099-S, 1098-T), a Trustee (5498, 5498-SA, 5498-ESA,
1099-SA), a Donee (1098-C), a Corporation (1099-CAP, 3922), a Provider (1099-H),
a Transferor (3921), or, an Employer (W2, W2C). To avoid this ambiguity,
Account Ability regards all filers as Clients. There isNO LIMIT on the number of clients (filers) one can enter. Your
entire database is stored on your computer, so you never have to pay costly
online processing fees per filer.
Account Ability regards those who receive the returns prepared by a filer
as Recipients (e.g. contractors, debtors, employees, borrowers,
transferors, students, winners, beneficiaries, participants, donors, etc.).
There is NO LIMIT on the number of recipient returns one can enter.Your entire database is stored on your computer, so you never have
to pay costly online processing fees per recipient/employee.
Filing via IRS FIRE and SSA Business Services Online
Account Ability includes electronic filing
of Information Returns (1099, 1098, 5498, 3921, 3922, W2G) and Annual Wage
Reports (W2, W2C) at no extra charge. Information Returns are easily uploaded to the IRS
FIRE System; Annual
Wage Reports to the SSA
Business Services Online (SSA BSO). Transmitters of Information
Returns are required to have a Transmitter Control Code (TCC) from
IRS. If you don't already have a TCC, Account Ability can assist you in
applying for one by preparing Form 4419, Application for Filing Information
Returns Electronically. Submitters of Annual Wage Reports are required
to have a User Identification Number (UID) from Social Security
Administration. If you don't already have a UID, you can register for one
online at SSA
Business Services Online.
Account Ability's Integrated Browser eliminates the need to remember
your TCC, EIN, User ID, Password and PIN required by IRS
FIRE and SSA
Business Services Online (SSA BSO).
Account Ability's Integrated
Just click the Fill-in
button to transfer this information from Account Ability's database to the
web page. The Fill-in button can also be secured with a
Federal/State Reporting - Read
The Combined Federal/State Filing (CF/SF) program was established to facilitate
the filing of Information Returns for the taxpayer. IRS/ECC-MTB will forward
this information to participating states free of charge for approved filers.
Separate reporting to those states is not required. The following Information
Returns may be filed under the CF/SF program: 1099-B,
1099-DIV, 1099-G, 1099-INT,
1099-K, 1099-MISC, 1099-OID, 1099-PATR,
1099-R and 5498.
Account Ability includes Combined Federal/State Filing at no extra charge.
For more information on CF/SF, as well as a list of participating states,
refer to the section on Combined
Federal/State Filing in Part A of IRS
Publication 1220. You will also find some questions and answers
regarding Combined Federal/State Filing on Account Ability's FAQ
State Wage (W2) Reporting
Most states will accept wage reports compliant with SSA EFW2 (formerly MMREF-1)
specifications. Account Ability includes an interface for these states at
no extra charge. To find out if your state accepts SSA EFW2 wage
reports, contact your states Dept. of Revenue (see the Resources
selection on the menu).
TIN (Taxpayer ID Number) Matching, Prints Form W-9, W-9S, First B-Notice
Account Ability includes IRS Bulk
TIN Matching at no extra charge. The Internal Revenue
Service’s Taxpayer Identification Number (TIN) Matching Program was
established for payers of Form 1099 income subject to the backup withholding
provisions of section 3406(a)(1)(A) and (B) of the Internal Revenue Code.
The Bulk TIN Matching
process accepts electronic transmittals containing up to 100,000 name/TIN
combinations for matching against the IRS name/TIN database. Account Ability
creates electronic transmittals pursuant to IRS Pub. 2108A. Account Ability
prepares forms W-9(W-9S)
for recipients (students) failing to match the IRS name/TIN database. A
can also be printed for each recipient subject to Backup Withholding.
on Laser and Inkjet Printers
Account Ability draws your returns on ordinary blank paper or fills in preprinted
government approved laser forms. Employee W2 and Recipient 1099-R forms
can be printed 4 returns (Copies B,C,2,2) on a single page. The Account
Ability Forms Division carries a complete line of preprinted
and blank laser tax forms and companion envelopes.
on Pressure Seal Forms
Account Ability includes the option to print the entire family of Information
Returns and Annual Wage Reports on blank pressure seal forms. The Account
Ability Forms Division carries a complete line of blank pressure
seal laser forms and pressure seal hardware.
to Portable Document Files (PDF)
Account Ability includes a free PDF WRITER (IDMSPDF) capable
of writing recipient returns to distinct PDF files. PDF naming conventions
include Taxpayer Identification Number (TIN), Recipient Account Numbers,
and Employee Control Numbers. This is an ideal solution for those desiring
to post a recipient's 1099 or W2 to a secure website. If you would like
to download IDMSPDF, visit our Download
Intelligent Mail® Barcoding and Address Verification
If recipient addresses are coded for Zip+4+Delivery Point, and you have
a USPS Mailer Id, Account Ability automatically prints the USPS Intelligent
Mail® barcode on the address portion of all pressure seal forms.
The Tools menu of each tax form includes an Address
Verification selection that interactively verifies a recipient's address
and mailing industry information with the US Postal Services website. To
learn more about Intelligent Mail® Services, visit the USPS
National Support Center.
Print First-Class Indicias on Pressure Seal Forms
If your company has a First-Class Permit, Account Ability can be configured
to print a First-Class Indicia on the address portion of each pressure seal
form. The Account Ability Forms Division
carries a complete line of pressure seal forms and pressure seal hardware.
Print Copy A W2, W2C, W3, W3C on Blank Paper
Social Security Administration will accept black and white laser drawn Copy
A returns prepared by Account Ability. These returns are included as Enhanced
Metafiles that can be drawn on ordinary copy paper. Sample output can be
viewed by clicking on the appropriate form: W2,
on Generic Dot Matrix Printers
If you prefer to use traditional continuous forms, Account Ability supports
generic dot matrix printers capable of printing at 10 cpi, 6 lpi. Both 1-Wide
and 2-Wide W2 formats are supported. The Dot Matrix Print Options dialog
provides an alignment utility that guarantees a perfect alignment with each
print session. The Account
Ability Forms Division carries a complete line of continuous
tax forms and companion envelopes.
Recipients from an ASCII Text File
Account Ability includes a FREEImport
Mapping Utility capable of converting any delimited (comma,
tab, pipe) text file you create (say with Excel®, Access®, DBase®, Informix®,
Oracle®, SQL, etc.) into a format compatible with Account Ability. Many
software applications (e.g. Property Boss, AutoMate, Peachtree, Intuit QuickBooks,
MAS90, Great Plains Software, etc.) are capable of exporting to spreadsheets
and delimited text files. The Import
Mapping Utility can be used to easily import these files into
IRS (Pub. 1220) and SSA EFW2 (formerly MMREF-1) Transmittals
Many of our larger customers already have in-house systems capable of reporting
their Information Returns and Annual Wage Reports electronically. What their
in-house systems lack, however, is the ability to either process correction
returns, generate recipient copies on laser, or electronically file at the
State level. Account Ability can import the Pub. 1220 or EFW2 transmittal
created by their in-house systems. Once imported, Account Ability can be
used to overcome any of these deficiencies.
Multiple Import Session Rollup of Recipient Returns
Some applications, such as Intuit's QuickBooks, are deficient in that they
cannot export a recipient's entire 1099 or W2 to a single file. They do,
however, have the ability to export the information to a variety of text
and/or Excel® files. Account Ability overcomes this deficiency by importing
and rolling up these files over multiple import sessions. The rollup feature
can actually import an entire payroll journal or cash disbursements journal
resulting in a single return for each recipient.
Filtering of Unwanted Returns
The Tools menu of each tax form includes a Filtering
option that can be used to VOID returns based upon the monetary constraints
you enter. This feature is extremely useful for filtering out recipients
who have not earned at least $600 of reportable income on Form 1099-MISC.
Form 1098-C includes the option to filter duplicate VINs.
IRS Instructions (PDF Format) Included with Each Form
While working on a tax form, click your mouse on the IRS instructions icon
displayed at the bottom of the main window and Account Ability displays
Official IRS Instructions for the active form.
Another Filer's Returns
This feature enables many users to work on a filer's returns in batches.
Each user works on his own batch of returns. When done, all batches are
imported into the master filer for processing.
Clients (Filers) from an ASCII Text File
If you can export your existing client database to a comma or tab delimited
ASCII text file, the Import Mapping Utility, which is included for FREE,
can be used to create a text file that Account Ability can import.
Filer and/or Recipient Information to an ASCII Text File
Regardless of which file or form you desire to export, Account Ability includes
an Export Options dialog that allows you to select any combination of fields
to be exported. The resulting file is a comma separated text file that is
compatible with Microsoft Excel® as well as any standard text editor. Exported
data is generic so that it can be merged with any mailing label application.
IDENTIFYING and CORRECTING Transactions
If you've ever corrected 1099, 1098, 3921, 3922, 5498, or W2G returns, then
you're aware of the stringent guidelines imposed by IRS. Depending upon
the type of correction to be reported, either 1 transaction (CORRECTING
transaction) or 2 transactions (IDENTIFYING and CORRECTING transactions)
may be required. Account Ability facilitates the correction process by automatically
creating the IDENTIFYING transaction and fetching the original return for
preparation of the CORRECTING transaction.
(Mask) Social Security Numbers on Information Returns
Account Ability complies with IRS
Notice 2011-38, which extends and modifiesIRS
Notice 2009-93, which created a pilot program allowing filers
of information returns to truncate an individual payee's nine digit identifying
number (e.g. XXX-XX-1234). IRS Notice 2011-38 extends the pilot program
as to paper payee statements furnished for calendar years 2011 and 2012.
This notice also modifies the requirements announced in Notice 2009-93 by
excluding Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes,
from the pilot program as it is an "acknowledgement" required
by section 170(f)(12), rather than a payee statement.
Taxpayer Identification Number Alert
Account Ability permits recipient records with the same taxpayer identification
number to be entered without warning. You can, however, instruct Account
Ability to alert you of a duplicate before it is recorded.
Stop Designation Utility
Many tax forms contain boxes that you'll probably never use. For example,
you may only use the Nonemployee Compensation box of Form 1099-MISC. The
interactive "Tab Stop Designation" dialog enables you to specify
the boxes you would like to use. Simply right-click your mouse on the caption
of any box and the Tab Stop Designation dialog is displayed.
1098 Mortgage Interest, Amortization, R/E Tax, Capital Reserve
If you prepare 1098 returns for cooperatives then you are going to love
this feature. Each 1098 can track a payer's shares, period of occupancy,
and percentage of maintenance paid. The Apportion selection
on the File menu of Form 1098 uses this information to
compute each payer's share of the total interest, total amortization,
total real estate tax, and total capital reserve fund for the cooperative.
Transmittals 1096, W3, W3C
Account Ability automatically totals a filer's returns when preparing summary
transmittals. Although IRS requires Transmittal 1096 to be printed on red
preprinted forms, an INFORMATION COPY can be printed in black and white
for your records. Social Security Administration will accept Account Ability's
laser drawn Transmittals W-3
Although no longer required by IRS, Account Ability still includes the ability
to print Form 4804 for your own records.
Forward Any Part of Your Database Each Year
Since it is not always desirable to roll forward all returns each year,
you decide which returns to roll forward. The "Roll Forward" dialog
also allows you to specify whether or not to initialize each return for
a new calendar year.
This is an analysis of returns processed for all filers during the prior
and current reporting years.
Reports to Verify Your Data
All tax forms include a detailed Control Report and Register Listing to
help verify your data.
Total a file in seconds for on screen viewing and printing.
Wage and Withholding Report
This report gives you a detailed analysis of each reporting state. State
and Local wages and withholding are clearly itemized for easy data verification.
FICA/Medicare Wages and Withholding
Compute FICA/Medicare wages and withholding for one or all employees.
Your Database in Seconds
Account Ability includes a sophisticated Backup and Restore Utility
capable of backing up a single client's returns or the entire Account Ability
database in seconds.
Levels of Security
Password protect any or all of your client's Information Returns and Annual
Wage Reports. In addition to specifying an optional master (administrative)
password at the client level, passwords can vary for each type of return
making it possible to distribute job loads among different departments in
your organization securely.
Indexes for Sorting
Choose from a variety of indexes by which to sort your returns. Whether
it be taxpayer id, recipient name, zip code, account number, etc., Account
Ability incrementally locates any return in seconds.