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REMINDER VOLUME 21 - BULLETIN #245
TO:
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ALL CLEARING MEMBERS
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FROM:
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BUSINESS SYSTEMS GROUP
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DATE:
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December 4, 2001
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SUBJECT:
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ATOM Tax Year 2001 1099 Production
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On Wednesday, December 5, 2001, the Board of Trade Clearing Corporation will produce the Firm 1099 – Misc. Information Register (BFR00062). The report details Firm Payer information and Reportable and Nonreportable payments by broker. The Reportable section is broken down between dollar amounts under $600 and over $600. Brokers listed in either of these two groups may receive a 1099 Misc. statement. The Nonreportable section lists Invalid Data, brokers listed in this section will not receive a 1099 Misc. Statement. The Firm 1099 – Misc. Information Register (BFR00062) will be updated overnight if your firm enters tax adjustments on the prior day. The report is available in INFOPAC (Chicago).
Cover Page: Payer Information
The Payer information section provides all tax information currently on file for your firm at the Board of Trade Clearing Corporation. This section also provides the firm's ATOM tax status. Firm's ATOM tax status indicates if 1099 – Misc. Statements will be printed and filed with the IRS for all brokers or for brokers with $600 or more. Please verify the accuracy of the information provided.
Section: Reportable Forms 1099 - Misc Group: Under $600
This section provides Broker tax information currently on file at the Board of Trade Clearing Corporation and the Year to Date 1099 Misc. Compensation Amount under $600. ATOM 1099 processing allows firms the option of excluding amounts less than $600 for reporting to the IRS. If firms select this feature no 1099 statements will be generated for Broker Code and Tax ID combinations that have less than $600 of 1099 compensation as of 7:00 PM, Friday, January 11, 2002. Additionally amounts less than $600 as of 7:00 PM Wednesday, February 13, 2002 will not be reported to the IRS.
Firms should be aware that this processing will not result in tax adjustments being made by the Clearing Corporation. If firms choose not to report dollar amounts less than $600, those amounts will be retained in the ATOM system; the printing and reporting of 1099 information will be suppressed.
(over)
If firms wish to select this feature, the attached form must be completed and returned to Business Systems by Friday, December 14, 2001. Firms can deliver, e-mail or fax the form to the following address:
BSG@botcc.com
141 W. Jackson Blvd.
Suite 1430
Fax Number: 786-0152
Section: Reportable Forms 1099 - Misc Group: $600 and Over
This section provides all Broker tax information currently on file at the Board of Trade Clearing Corporation and the Year to Date 1099 Misc. Compensation Amount for $600 or more. This section provides your firm with a list of Brokers that will receive 1099 Misc. Compensation Statements for $600 or more from your firm. Tax adjustments can be made to individual Brokers to increase or decrease dollar amounts to be printed on the 1099 Misc. Statements and reported to the IRS.
Section: Nonreportable Group: Invalid Data
This section provides all Broker tax information currently on file at the Board of Trade Clearing Corporation and Year to Date 1099 Misc. Compensation Amount paid. This section includes brokers with negative dollar amounts or zero dollar amounts. They are considered nonreportable and no 1099 Misc. Statements will be produced. Tax adjustments made by your firm to individual Brokers reducing the dollar amount to zero result in a Nonreportable status and no 1099 Misc. Statement will be produced. Nonreportable Group, Invalid Data also includes brokers that have not signed up for ATOM. Invalid Brokers are indicated by all 999's in the Tax Id Number, no Payee Name and no Payee Address.
Each section of the 1099 – Misc. Information Register (BFR00062) provides a group total and section total. A grand total for all sections is provided on the last page of the report.
1099 Production
Firms are asked to indicate by Friday, December 14, 2001 their preference in the production of 1099 statements on the attached form.
Should you have any questions, please call or e-mail one of the following Business Systems Analysts:
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ATOM
BOARD OF TRADE CLEARING CORPORATION
TEFRA YEAR-END 2001 1099 PROCESSING REQUEST FORM
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FIRM NAME
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______________________
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FIRM NUMBER(S)
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___________
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CONTACT NAME
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______________________
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TITLE
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__________________
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TELEPHONE NUMBER
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______________________
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DATE
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__________________
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Please check one of the following:
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Print 1099 Statements and report all 1099 information to the IRS.
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Print 1099 Statements and report to the IRS only brokerage dollar amounts that are $600 or more.
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Do not print 1099 Statements or report 1099 information to the IRS.
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Please indicate the number of sets:
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Number of sets of ATOM Broker 1099 Statements (Note: 1099 Statements are priced at $2.00 per set.)
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PLEASE RETURN REQUEST FORM TO BUSINESS SYSTEMS, SUITE 1460 OR
FAX TO 786-0152, BY FRIDAY, DECEMBER 14, 2001
E-Mail - BSG@botcc.com
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