Registered Name for Federal ID for 1099 Reporting

Due to IRS changes that occurred in October 2023, some AGRIS users have found they must now report 1099 forms to the IRS using the IRIS system.
This change of reporting required corrections in the name ID description format being reported to the IRS.
In preparation for this need, AGRIS has enhanced the REGISTERED NAME FOR FEDERAL ID format as of V24.0.0 SU3 (released Nov 2024)
It is in your best interest to begin updating the REGISTERED NAME FOR FEDERAL ID to the new format before reporting to the IRIS system.
If you move to version 25, you also must update the REGISTERED NAME FOR FEDERAL ID regardless of FIRE/IRIS reporting format.

NOTE: As of Dec 2024, the FIRE system is still in place and the best method to use for filing.
The FIRE system is scheduled to retire in Tax Year (TY) 2026/Filing Season (FS) 2027. All reporting will go to the IRIS system after 2027.

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Registered Name for Federal ID

• To limit fines for having your name description not match the tax ID.
  The IRS (Internal Revenue Service) IRIS 1099 reporting system validates the name description with their Tax ID Number.
  A warning is received that the name description does not match what the IRS has on file.
  Does this mean that the IRS rejects the file? According to their website….no….but if there are too many instances of this, they will fine you.
  They do NOT list the amount of the fine or a number for “How many is too many?”
  So, to not be fined, you can now clean up your REGISTERED NAME FOR FEDERAL ID to limit this possibility.

• To prepare for a time when the IRS FIRE reporting system is no longer in use.
  Do we have a sundown date for FIRE reporting? Yes.
  The FIRE system is scheduled to retire in Tax Year (TY) 2026/Filing Season (FS) 2027. All reporting will go to the IRIS system after 2027.
  But if your IRS login expires or you lose the ID.ME login, you would have to start over with an IRIS login.
  FIRE system would no longer be available to you.

There are three options for updating. Choose one.

• Single instance method = Name/Address Maintenance > View/edit Name > Select name

• Multiple instance method = Name/Address Maintenance > Update Names

• Name/address Import Update

AGRIS > Name/Address Maintenance > View/Edit Name > Select Name
Contact Information > Select Tax Entity type (this is key to changing the format)
Select Business (Tax ID format XX-XXXXXXXX) or Individual (Tax ID Format XXX-XX-XXXX)

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Tax Entity Type

Depending on the selection, you will key in the Business Name as on their W-9 form or the Individual Name as on their Social Security Card.
Whatever Name Description being used in AGRIS can stay for your search functions and reporting.
The 1099 reporting will use the Registered Name Description for Federal ID. This description should match their official Tax ID Name Description.

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Individual - Registered Name Description - old data to new data

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Business - Registered Name id - Old Data to New Data
40-character limit on business 1 field, any overflow goes to Business 2

AGRIS > Name/Address Maintenance >Update Names
Key in Range of Name Id’s to limit what is changed.
Answer YES to Update Registered Name?
Each name in the filter range will pull up, one and the other, to update the Tax Entity type and the Registered Name Description.

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Update Name function window

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Each name in the filter will be brought up to edit the Tax Entity Type and the Registered Name Description…..without searching for each name id.

The Tax Entity Type and all new name elements have been added to the reports definition so that they can be included as desired. In addition, the new fields have been included in the existing Name/Address Export File and Name/Address Export Spreadsheet to facilitate making these updates via the imports. There is also a new standard report, Name/Address Export/Import Spreadsheet that generates NAMA1 records already set up to import in order to easily update the registered names.

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Standard Name/Address import files
BE SURE TO CHECK COLUMNS AR, AS, AT FOR CORRECT DATA
If left blank, the import will DELETE the data from your name/address.

The Name Import now supports updating the tax entity type and registered name data directly on the NAMA1 record in addition to the existing way using the NAMA2 record. If the NAMA1 record is used, it takes priority over the NAMA2 record if also present. The new fields are in columns BK through BR. Details can be found in Reports > File Layouts for Imports > NAM NAME/ADDRESS.

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WARNING:
Be sure to update columns AR = 2 & columns AS = 40-N and columns AT = 40-N except for position 32 and 33 (which should be Y).
Do NOT leave columns AS and AT blank. AGRIS reads blanks as YES and will wipe out all data for each field the Y/N represents.
Print out the AGRIS > Maintenance > File Layouts for Imports > Nam > Name Address Import for layouts of what each Yes/No represents.

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columns AR thru AT - these flags tell AGRIS what columns to import of the CSV file import.