1099 MISC - Federal E-Filing and Print Options
Through Rentec, you can file your Federal 1099-MISC forms for owners and vendors electronically or use the service to print and mail your forms.
When you are ready to file go to the Settings Tab> Utilities> 1099 E-File and Print.
You have full E-file functionality with the IRS as well as a Mail Out To Recipients and Print option. In preparation we recommend the following:
- Edit your vendors and owners and verify you have the correct federal tax id number. For individuals, this is their social security number (SSN) and for a business, it would be their employer identification number (EIN). If you do not have an SSN or EIN number you can enter zeros. **Make sure to have a W-9 on file for each vendor and owner**
- Make sure the mailing address is accurate for each vendor and owner. The address is where their copy of the 1099 form will be mailed to which they will be using for the personal or corporate tax return. Military APO addresses are accepted, however, any other addresses outside of the US can not be used.
- Verify your numbers. It is never too early to begin auditing your data. Review the 1099 Tax Assistant (Reports Tab> Financial Reports> 1099 Tax Assistant) and make sure the numbers match your records. This is the same data used for the 1099 E File. This report and the 1099 E file system will utilize the rents received and vendor payments entered throughout the year.
- Your properties will need to be "active" in order to be included in EOY (End Of Year) reporting. If your properties have been archived, you will need to re-activate them in order to include them in your 1099 filings.
If the information is not complete, you'll be required to update it before being allowed to submit your forms.
Please note that our tool automatically enters the Rent Received totals for each of your owners rather than Distribution totals. If you believe that you are required to report the amounts distributed to your owners rather than the amount of rent received, then you will want to update these totals on our tool before continuing to the next step. The Distribution totals are displayed on the 1099 Tax Assistant report along with the Rent Received totals.
1099-MISC E-Filing and Print options are handled through an IRS approved 3rd Party (Nelco) who will bill separately for the service.
After using Rentec to submit your forms to Nelco, you will then be able to create an account with them and login to their website which will provide you with further options, such as Federally E-Filing your forms, using their Recipient Delivery service to mail out the forms, or both.
(If you are logged into the Nelco website and are not able to see the screen below, click on Manage Account and update your password. Nelco requires that your password be reset every year.)
It is extremely important to verify all information before E-Filing your forms. Once you have paid to E-File a form, neither Rentec or Nelco will have the ability to stop or make any changes to your submitted forms. After a form has been E-Filed, you will be required to contact the IRS directly and submit a change request with them in order to make any changes after submission.
While processing the forms, you will be able to preview them, and print out a summary report and a detail report ... however you will not have access to Print any 1099 MISC forms until after you've paid to E-File them or use the Recipient Mail & Online Retrieval service.
The following video walks you through the process of submitting your 1099-MISC tax forms with Rentec Direct through the Nelco Dashboard.https://www.youtube.com/watch?v=WJEdsoE6JHo&feature=youtu.be
Is a 1096 form required?
When you E-File through Rentec, the 1096 form is not needed. When paper filing, the 1096 form is used as a cover sheet to let the IRS know how many forms are being filed when you mail in your batch of 1099's. When E-Filing, the system electronically notifies the IRS as to how many forms are being filed and the 1096 is not required.
If you choose not to E-File and select the Recipient Mail & Online Retrieval service instead, this will send a copy of the 1099's to each of your vendors/owners. You will then be able to go to the Form Filing History section of Nelco website to review and print out the forms so that you can manually file them. If you are manually filing your 1099's, then a 1096 form will be required, however Rentec and Nelco do not provide you with a 1096 form.
Vendor: [x] Non-Employee vs. [x] Other
When editing your vendor accounts in Rentec, you can choose whether to mark your vendors as Non-Employee or Other on your 1099's.
With the 1099-MISC box checked, the vendor will be enabled to show up on 1099 reports and electronics 1099-MISC filing. To disable tax reporting for the vendor, uncheck the box. Select the 1099 filing type from the dropdown menu. Refer to the IRS 1099-MISC filing instructions for help selecting the filing type you should use.