The 1099 Reporting System produces 1099-MISC statements for distribution to Claws system investors, creates an electronic file for upload to the IRS F.I.R.E. program and produces 1099-MISC filings for several states.
At end of year, the user extracts the reporting year’s payment records from the Claws production system and uploads the information into the 1099 system. The extraction process can be used multiple times and can pull either a single payee or all payees. Existing 1099 records can be deleted as part of the extract process prior to creating new records.
The user can send a 1099-MISC statement to any investor in the Claws system, even if the investor is exempt by the IRS from 1099 reporting. Exempt investors are not included in the IRS upload.
Users can supplement Claws 1099-MISC statements and filings by entering additional payment information from external sources.
Investors receive a custom 1099-MISC statement that lists all payments to the investor along with check numbers and payment dates. The statements show investors how their payments are split between working interest income and royalty income.