Agencies of the State of Kansas are considered to be a single payer by the
Internal Revenue Service (IRS) and payment information is required to be filed
by one transmitter. In addition, federal laws and regulations require the
filing of information returns to be submitted by magnetic media or
electronically. In order to comply with the reporting requirements of the IRS
and to avoid the assessment of penalties, the Division of Accounts and Reports
will transmit all 2002 calendar year 1099 information returns for the State of
Kansas on magnetic media or electronically.
Some payments by state agencies are IRS reportable but are not included in
the Statewide Accounting and Reporting System (STARS) or required data is not
provided by STARS. These payments require unique reporting procedures. Such
expenditures include certain interest payments, State Fair premiums and
purchases of real property.
Locally administered interest payments exceeding $10 are to be reported on
Form 1099-INT. An example of these payments is interest paid from trust funds to
clients by institutions like the Department of Social and Rehabilitation
Services and the Department of Corrections.
IRS regulations require the State of Kansas to report on Form 1099-S any
purchases of real property exceeding $600. Additional requirements for this form
include a description or address of the property and the closing date of the
purchase transaction. (Rental and construction costs are not to
be included).
State Fair premiums are to be reported on form 1099-MISC.
Procedures for handling 1099 information returns for calendar year 2002 are
as follows:
- Agencies that have made expenditures as described, will be responsible for
the preparation and delivery of the appropriate 1099 forms to the payees
prior to January 31, 2003. Do not mail forms directly to the IRS or
to the Kansas Department of Revenue.
- Agencies reporting applicable purchases of real property may submit the
IRS and/or the State of Kansas copies of the 1099-S forms to the
address below, and the Division of Accounts and Reports will submit this
information to the IRS.
For those agencies with other expenditures to report, the DA-43 form
(http://www.da.ks.gov/ar/forms/),
should be used if you have fewer than 20 records. If you have 20 or more records to submit they
should be submitted as a text file in the attached format shown on the Non-STARS record layout form.
You may submit a text file for fewer than 20 records if you want. All data
should be remitted by February 15, 2003 to:
Division of Accounts and Reports
Central Accounting Services Section
900 SW Jackson, Room 351-S, LSOB
Topeka, Kansas 66612-1248
Attention: Don Beck
If you are submitting a text file you may submit the file via diskette or
e-mail the file as an attachment to don.beck@da.state.ks.us.
- Agencies may submit data to the Division of Accounts and Reports on
magnetic media in lieu of paper. However, the Division of Accounts and
Reports should be contacted for proper reporting format. In addition, a
completed Transmittal Form 4804 is necessary, as well as, the following
information on the Media Label: operating system/hardware, type of returns,
number of payees, and transmitter's number for media.
- The Division of Accounts and Reports will consolidate the data received
from state agencies on magnetic media. The media will be forwarded to the
IRS National Computer Center prior to February 28, 2003.
- If any agency finds it necessary to issue a corrected information return,
the payee should be provided a copy as soon as possible. The IRS copy of the
corrected form (marked "corrected") should be forwarded promptly
to the Central Accounting Services Section of the Division of Accounts and
Reports.
DB:db
Attachment: Non-STARS record layout form
