1099-MISC, 1099-INT Reporting & Backup Withholding
The Bureau of Accountancy (BOA) plays a central role in overseeing the City of New York’s compliance with IRS’ 1099-MISC, 1099-INT and Backup Withholding information reporting requirements. As the Citywide Backup Withholding and 1099 System Administrator, BOA staff:

• Assists taxpayers with questions or problems related to Backup Withholding, 1099-MISC and 1099-INT forms issued by the City’s Financial Management System;
• Assists taxpayers who believe they should have received a 1099-MISC or 1099-INT form, but did not;
• Advises over 140 City agencies on Backup Withholding and 1099 procedures and reporting guidelines;
• Issues annual 1099 filing instructions to be followed by City agencies;
• Holds training sessions for City Agencies;
• Coordinates changes and modifications to the City's Backup Withholding, 1099-MISC and 1099-INT reporting system; and
• Monitors Internal Revenue Service announcements and publications for changes to the Internal Revenue Code that impact Backup Withholding and 1099 reporting.

For Tax Year 2008, BOA staff answered over 500 calls from taxpayers and City agencies.
Contact Us: 1099-MISC & 1099-INT Hot Line & E-Mail Address
If you are a 1099 recipient, or a City Agency with a 1099-MISC or 1099-INT related question or problem, you have the option of leaving a message on our 1099 Hot Line or sending an e-mail with the 1099 issue. A Comptroller’s staff member will attempt to respond to your inquiry within 1 business day.

• Hot Line Number: (212) 669-8160
• E-Mail Address: 1099Info@comptroller.nyc.gov

Other 1099 Contacts

• Department of Education: If you received a Form 1099 from the New York City Department of Education, please call their 1099 hot line at (718) 935-2930.
• School Construction Authority: If you received a Form 1099 from the New York City School Construction Authority, please call (718) 472-8314.
• Board of Elections: If you received a Form 1099 from the Board of Elections, please call (212) 487-5326.
• Department of Finance: If you received a Form 1099 from the Department of Finance, please call (718) 935-6069.
• Law Department, Worker’s Compensation: If you received a Form 1099 from the Law Department in connection with Worker’s Compensation, please call (718) 222-2136.

1099-MISC and 1099-INT Form Generation Procedures for NYC
If an inconsistency is found on a 1099 form, as a 1099 recipient, your first course of action, before contacting BOA, is to contact the City agency that you provided services to, to attempt to resolve the problem and clarify any questions. 1099 recipients should contact BOA staff at the numbers listed above only if they cannot satisfactorily resolve their issue with the City agency.
Two primary factors determine whether or not you receive a Form 1099-MISC.

• The first factor depends on your business entity. The IRS has determined that individuals, sole proprietors, partnerships, trusts, limited liability companies, estates, resident/non-resident aliens, and joint ventures to be eligible for 1099 reporting. Exceptions apply to corporations and certain corporations who supply medical or legal services.
• The second factor depends on the type of payment made to you. Generally, payments for services categorized under rentals (Box 1), employee death benefits (Box 3), medical and health care payments (Box 6), non-employee compensation (Box 7), and gross proceeds paid to an attorney (Box 14) are reported on Form 1099-MISC. The City of New York reports a majority of it's payments under non-employee compensation (Box 7) for services rendered as professional services. These services include auditors, consultants, actuaries, and business services such as repairs, mechanical, and temporary personnel.

Payments reported on Form 1099-INT primarily involve interest generated from late payments to vendors.
The City of New York issues consolidated forms for payments classified under 1099-MISC and 1099-INT forms. The consolidated forms reflect reportable income from all City agencies (with the exception of the Department of Education and School Construction Authority). City agencies are primarily responsible for all payments reported on 1099 forms.
The City of New York complies with IRS stipulated minimum income amounts (known as reporting thresholds) for each 1099 box on Forms 1099-MISC and 1099-INT. Forms 1099 will not be generated if the following minimum combined reporting thresholds are not met:

Backup Withholding
The Internal Revenue Service requires that payers (such as the City of New York) to withhold 28% in tax, called Backup Withholding, when payees do not submit their correct Name/TIN combination. The IRS will notify the City of Name/TIN mismatches, which will prompt the generation of B-Notices from the Comptroller’s Office to payees.

• 1st B-Notice and Required Documentation: 1st B-Notices are sent to payees who appear on the IRS Backup Withholding notification for the 1st time. A Backup Withholding Substitute Form W-9 is attached to the 1st B-Notice. Completion of this form is requested from these payees along with a copy of their social security card (if applicable).
• 2nd B-Notice and Required Documentation: 2nd B-Notices are sent to payees who appear on the IRS Backup Withholding notification for the 2nd or 3rd time in a consecutive year. IRS Letter 147C or certified Form SSA-7028 is requested from these payees along with a 2nd B-Notice Attachment.

If the requested documentation (Backup Withholding Substitute Form W-9, IRS Letter 147C, or certified Form SSA-7028) is not returned within 30 business days, then 28% withholding will begin on the 31st day for 1099 reportable payments. 1099 reportable payments are deemed eligible for Backup Withholding according to IRS regulations.

If the requested documentation (Backup Withholding Substitute Form W-9, IRS Letter 147C, or certified Form SSA-7028) is returned within 30 business days, then the City’s payee database will be updated to reflect corrected information and Backup Withholding will be removed from the payee’s record.

Contact Us: Backup Withholding Hot Line
If you are a B-Notice recipient, or a City Agency with a Backup Withholding related question or problem, you have the option of leaving a message on our Backup Withholding hot line. A Comptroller’s staff member will attempt to respond to your inquiry within 1 business day.

• Hot Line Number: (212) 669-8233

Announcements
Public:

• Correction of 2008 1099-MISC & 1099-INT Forms
  Please send an e-mail at 1099Info@comptroller.nyc.gov or call our 1099 Hot Line at (212) 669-8160 if there are any questions or issues on the reported information.

City Agencies:

• Updates to Contact Information
  In preparation for calendar year 2009, the Tax Reporting and Payee/Vendor Validation Units at the Bureau of Accountancy are in the process of updating the Comptroller's Agency Contact List.

If you have not completed or submitted a form, please contact the 1099 Hot Line at (212) 669-8160.

• Correction of 2008 1099-MISC & 1099-INT Forms
  The correction period for Calendar Year 2008 Forms 1099 is closed.  Please refer to 1099 Instructions or contact the 1099 Hot Line for further information.
  
  
• Agency Training
  ILT434 (FMS 1099-MISC & INT Tax Reporting) will be held at FISA's training center in August and September in preparation for calendar year 2009 forms.  Please contact your Agency FMS Training Coordinator to enroll.

Last updated: May 2009