Tax reports

Tax reports

Required user roles View Payments & View Secure Details

The 1099 Preparation report is only for payers located in the United States who use the W-9 collection flow. This report provides you with the total submitted amounts of paid and partially paid bills for each payee together with the W-9 details of the payee, including the ones that are marked as submitted manually.

To download:

  1. Click the Reports tab to open the list of available reports.
  2. In the menu, under "Tax forms", select "1099 preparation". The right side of the screen populates with information related to the report.
  3. In the "Year" field, click Drop-down arrow and select a report year.
  4. In the "Payment type" field, filter the report by the payment type that you report: "Bank transactions" or "Card networks transactions" or "All transactions".
  5. By default, the "Aggregate records by TINTaxpayer Identification Number" option is selected. If you do not want to see the submitted amounts grouped by Tax identification number (TIN), then deselect this option.
  6. If you want the report to include payees with no payments, then select "Show payees with no payments".
  7. Click Download CSV.

NetNow payments are reported on the actual paid date and not the date of the original scheduled payment.

Mapping payments to 1099-MISC boxes: for payers using bills

If you are using the Bills module, Tipalti allows you to map your payments by pairing each expense accountThe general ledger (GL) account that is debited for the payment amount with a 1099-MISC box via CSV or API.

After mapping, all payments associated with the expense account are allocated to the corresponding 1099-MISC box. Each 1099-MISC box has a dedicated column in the 1099 Preparation report.

 

EXAMPLE
Bill for payee "John Smith" has two lines:
    - Line 1: 100 USD, expense account A (linked to 1099-MISC box "1")
    - Line 2: 300 USD, expense account B (linked to 1099-MISC box "2")

If the bill was fully paid during the year of the report, 100 USD will be allocated to box "1" and 300 USD will be allocated to box "2".
  • In the 1099 report, amounts paid using expense accounts that were not mapped to any 1099-MISC box display in a column called "Payments not mapped to any 1099-misc box".
  • Tax amount and delivery cost are not applicable to 1099-MISC forms. These amounts display in a column called "Non-applicable payments". This column also includes amounts paid using expense accounts that were mapped as "not applicable".
  • Vendor credits that were applied during the year of the report display as negative numbers.

Mapping based on 1099-MISC box proportions

Usually, bills or vendor credits are linked to only one 1099-MISC box. In rare cases, when bills or vendor credits are linked to more than one 1099-MISC box AND one of the following scenarios applies, Tipalti uses the proportions method for mapping.

Scenarios:

  • A bill/ vendor credit has a discount and was paid during the year of the report.
  • A bill/ vendor credit was partially paid during the year of the report.
  • A bill/ vendor credit was partially paid before the year of the report and then was paid again during the year of the report.

The proportions method is a mapping estimation. It is based on the proportion of the payee's payment amount that is allocated to each 1099 box (see example below). When this method is used for a payee's payment, Tipalti sets the value of the "Payments mapped by proportions" column to TRUE.

When the proportions method is used, we recommend that you verify the mapping for these payees before filing out the 1099-MISC form.

Example
Bill for payee "John Smith" has two lines:

    - Line 1: 100 USD, expense account A (linked to 1099-MISC box "1")
    - Line 2: 300 USD, expense account B (linked to 1099-MISC box "2")
    - Discount: 40 USD
    - Total bill amount: 360 USD

If the bill was fully paid during the year of the report, the discount will be applied to box "1" and  box "2" based
on the proportions in the bill.


In this example, the proportions of the bill are allocated in a 1:3 ratio. Therefore, the same ratio is used to allocate
the discount in the 1099 report:

    - Box 1 will be allocated 90 USD (100 USD for the line and 10 USD for the discount)
    - Box 2 will be allocated 270 USD (300 USD for the line and 30 USD for the discount)

Field descriptions

The IRSInternal Revenue Service updated the 1099-MISC form in 2020, so we updated the 1099 Preparation report to match the IRS's updates. Click here to see the changes we made to the report.

Below are descriptions of the report fields for both the new (2020) and old (pre-2020) formats. All amounts are in USD.

Each row may apply to multiple payees; however, field data that display for a single payee (e.g., SSNSocial Security Number, email address, etc.) are for the payee with the most updated W-9 in Tipalti.

field

description
Payer entity
  • The legal name of the payer entity (which is defined on the payee or bill) that is linked to the payment
  • Only displays if the payer has multiple entities
Ssn The payee Social security number (SSN)
Ein The payee Employer identification number (EIN)
Payees
  • The payees who received payments (payees are separated by a semicolon)
  • Includes payee ID ("Idap"), name and company (if applicable)
Payments total submitted amount* The total submitted amount of payments per income type for the payee
Card networks payments amount* The total amount paid to the payee via non-banking payment methods (e.g., Intercash)
Bank transactions amount* The total amount paid to the payee via banking payment methods (e.g., ACH, Check, Global ACH/Local bank transfer, Wire)
Number of payments* The total number of payments paid to the payee
January payments amount* The total amount of all payments made to the payee in January
February payments amount* The total amount of all payments made to the payee in February
March payments amount* The total amount of all payments made to the payee in March
April payments amount* The total amount of all payments made to the payee in April
May payments amount* The total amount of all payments made to the payee in May
June payments amount* The total amount of all payments made to the payee in June
July payments amount* The total amount of all payments made to the payee in July
August payments amount* The total amount of all payments made to the payee in August
September payments amount* The total amount of all payments made to the payee in September
October payments amount* The total amount of all payments made to the payee in October
November payments amount* The total amount of all payments made to the payee in November
December payments amount* The total amount of all payments made to the payee in December
Tax form type Type of tax form submitted by payee (see Tax form & entity types)
Tax form date signed The date the tax form was signed by the payee
Name Name of payee
Bizname Payee company name
Full address The payee's full address
Address Payee street address line 1
Address2 Payee street address line 2
City Payee city
State Payee state/ province
Zip Payee zip/ postal code
Ccorp Indicates if the payee company is a corporation that is taxed separately from its owners and is subject to corporate income tax
Scorp Indicates if the payee company is a corporation, which generally, is not taxed separately from its owners and is not subject to corporate income tax
Corp Indicates if the payee company is incorporated
Other Indicates if the payee company is a type of business other than a corporation
Other text A description of the payee's type of business that is not a corporation
Partnership Indicates if the payee company is in partnership with another company
Trust Indicates if the payee company is in trust with another company
Exempt payee code
  • The exemption code for the payee when the payee is exempt from backup withholding
  • Only applies to companies and not individuals
Exempt from FATCA reporting code
  • The exemption code for the payee when the payee is exempt from FATCA reporting
  • Only applies to companies and not individuals
Individual Indicates if the payee company is owned by a single individual (sole proprietor)
Llc Indicates if the payee company is a Limited Liability Company (LLC)
Llc type The type of LLC of the payee company
Created The date the payee signed the tax form
TIN status

The status of the payee Tax identification number (TIN):

  • Pending
  • Validated
  • Failed validation
Email address The payee email address from the iFrame (the payee whose W-9 details are shown in the row)
1099-MISC^
Payments not mapped to any 1099-misc box

Includes amounts paid for:

  • Expense accounts that were not mapped to any 1099-MISC box
  • Payments that were created via the payment CSV file (these payments are not linked to any bills)
Non-applicable payments

Includes amounts paid for:

  • Expense accounts that were defined as "non-applicable"
  • Tax amounts and delivery costs in the bill
Box 1 - Rents The amount paid for rents during the year
Box 2 - Royalties The amount paid for royalties during the year
Box 3 - Other income The amount paid for other income (services) during the year
Box 5 - Fishing boat proceeds The amount for fishing boat proceeds during the year
Box 6 - Medical payments The amount for medical payments during the year
Box 7 - Direct sales of consumer products for resale The amount for direct sales of consumer products for resale during the year
Box 8 - Substitute payments in lieu of dividends or interest The amount for substitute payments in lieu of dividends or interest during the year
Box 9 - Crop insurance proceeds The amount for crop insurance proceeds during the year
Box 10 - Gross proceeds paid to an attorney The amount for gross proceeds paid to an attorney during the year
Box 11 - Fish purchased for resale The amount for cash payments for the purchase of fish for resale purposes, from an individual or corporation who is engaged in catching fish
Box 12 - section 409A deferrals The amount for section 409A deferrals during the year
Box 13 - Excess golden parachute payments The amount for excess golden parachute payments during the year
Box 14 - Nonqualified deferred compensation The amount deferred that is included in income under section 409A
(NEC) 1 - Non Employee Compensationǂ

The amount paid for non-employee compensation during the year
(NEC) 2 - Direct sales of consumer products for resaleǂ The amount for direct sales of consumer products for resale during the year
Payments mapped by proportions Indicates (TRUE or FALSE) if payee payments were mapped based on 1099-MISC box proportions
Entity Type
  • The type of the payee entity
  • Valid values:
    • Individual
    • Ccorp
    • Scorp
    • Partnership
    • Trust
    • LLC
    • Other
Amount withheld by payer

  • Sum of amount withheld of all applicable 1099 payments

  • Allows comprehensive tax withholding payment information to display in the the 1099 prep report (applies in cases where the MaxWithholding = true in the payment file OR IgnoreTaxValidation = true in the payment file and the TIN validation has failed)
* The amounts in these fields are based on what you selected for the Payment type filter.
^ The fields in this section only display for payers using the Bills module. The amounts are based on the GL accounts mapped to these fields. The numbered fields correspond with the boxes on the IRS's new 1099-MISC form.
ǂThis field needs to be filled out on the 1099-NEC form.

field

description
Payer entity
  • The legal name of the payer entity (which is defined on the payee or bill) that is linked to the payment
  • Only displays if the payer has multiple entities
Ssn The payee Social security number (SSN)
Ein The payee Employer identification number (EIN)
Payees
  • The payees who received payments (payees are separated by a semicolon)
  • Includes payee ID ("Idap"), name and company (if applicable)
Payments total submitted amount* The total submitted amount of payments per income type for the payee
Card networks payments amount* The total amount paid to the payee via non-banking payment methods (e.g., Intercash)
Bank transactions amount* The total amount paid to the payee via banking payment methods (e.g., ACH, Check, Global ACH/Local bank transfer, Wire)
Number of payments* The total number of payments paid to the payee
January payments amount* The total amount of all payments made to the payee in January
February payments amount* The total amount of all payments made to the payee in February
March payments amount* The total amount of all payments made to the payee in March
April payments amount* The total amount of all payments made to the payee in April
May payments amount* The total amount of all payments made to the payee in May
June payments amount* The total amount of all payments made to the payee in June
July payments amount* The total amount of all payments made to the payee in July
August payments amount* The total amount of all payments made to the payee in August
September payments amount* The total amount of all payments made to the payee in September
October payments amount* The total amount of all payments made to the payee in October
November payments amount* The total amount of all payments made to the payee in November
December payments amount* The total amount of all payments made to the payee in December
Tax form type Type of tax form submitted by payee (see Tax form & entity types)
Tax form date signed The date the tax form was signed by the payee
Name Name of payee
Bizname Payee company name
Full address The payee's full address
Address Payee street address line 1
Address2 Payee street address line 2
City Payee city
State Payee state/ province
Zip Payee zip/ postal code
Ccorp Indicates if the payee company is a corporation that is taxed separately from its owners and is subject to corporate income tax
Scorp Indicates if the payee company is a corporation, which generally, is not taxed separately from its owners and is not subject to corporate income tax
Corp Indicates if the payee company is incorporated
Other Indicates if the payee company is a type of business other than a corporation
Other text A description of the payee's type of business that is not a corporation
Partnership Indicates if the payee company is in partnership with another company
Trust Indicates if the payee company is in trust with another company
Exempt payee code
  • The exemption code for the payee when the payee is exempt from backup withholding
  • Only applies to companies and not individuals
Exempt from FATCA reporting code
  • The exemption code for the payee when the payee is exempt from FATCA reporting
  • Only applies to companies and not individuals
Individual Indicates if the payee company is owned by a single individual (sole proprietor)
Llc Indicates if the payee company is a Limited Liability Company (LLC)
Llc type The type of LLC of the payee company
Created The date the payee signed the tax form
TIN status

The status of the payee Tax identification number (TIN):

  • Pending
  • Validated
  • Failed validation
Email address The payee email address from the iFrame (the payee whose W-9 details are shown in the row)
1099-MISC^
Payments not mapped to any 1099-misc box

Includes amounts paid for:

  • Expense accounts that were not mapped to any 1099-MISC box
  • Payments that were created via the payment CSV file (these payments are not linked to any bills)
Non-applicable payments

Includes amounts paid for:

  • Expense accounts that were defined as "non-applicable"
  • Tax amounts and delivery costs in the bill
Box 1 - Rents The amount paid for rents during the year
Box 2 - Royalties The amount paid for royalties during the year
Box 3 - Other income The amount paid for other income (services) during the year
Box 5 - Fishing boat proceeds The amount for fishing boat proceeds during the year
Box 6 - Medical payments The amount for medical payments during the year
Box 7 - Direct sales of consumer products for resale The amount for direct sales of consumer products for resale during the year
Box 8 - Substitute payments in lieu of dividends or interest The amount for substitute payments in lieu of dividends or interest during the year
Box 9 - Direct sales of consumer products for resale The amount for direct sales of consumer products for resale during the year
Box 10 - Crop insurance proceeds The amount for crop insurance proceeds during the year
Box 13 - Excess golden parachute payments The amount for excess golden parachute payments during the year
Box 14 - Gross proceeds paid to an attorney The amount for gross proceeds paid to an attorney during the year
Box 15a - section 409A deferrals The amount for section 409A deferrals during the year
Box 15b - section 409A income The amount for section 409A income during the year
Payments mapped by proportions Indicates (TRUE or FALSE) if payee payments were mapped based on 1099-MISC box proportions
Entity Type
  • The type of the payer entity
  • Valid values:
    • Individual
    • Ccorp
    • Scorp
    • Partnership
    • Trust
    • LLC
    • Other
Amount withheld by payer Sum of amount withheld of all applicable 1099 payments
* The amounts in these fields are based on what you selected for the Payment type filter.
^ The fields in this section only display for payers using the Bills module. The amounts are based on the GL accounts mapped to these fields. The numbered fields correspond with the boxes on the IRS's old 1099-MISC form.

Required user roles View Payments & View Secure Details

The 1042-S Preparation report is only for payers located in the United States who use the W-8 tax collection flow. This report provides you with the total submitted amount of payments per income type for each payee together with the W-8 details of the payee.

To download:

  1. Click the Reports tab to open the list of available reports.
  2. In the menu, under "Tax forms", select "1042-s preparation". The right side of the screen populates with information related to the report.
  3. In the "Year" field, click Drop-down arrow and select a report year.
  4. By default, the "Aggregate records by TIN" and the "Show payees with no payments" options are selected.
    1. If you do not want to see the submitted amounts grouped by Tax Identification Number (TIN), deselect "Aggregate records by TIN". By deselecting this option and keeping the next option selected, the report will include all payee tax forms regardless of whether payments were submitted or there were no payments while those tax forms were active.
    2. If you do not want to see information about payees with no payments, deselect "Show payees with no payments".
  5. Click Download CSV.

Please note the following in this report:

Field descriptions

The 1042-S Preparation report contains the following fields.

field

description
Payer entity
  • The legal name of the payer entity linked to the payment (if the payment has no entity, the entity linked to the payee displays)
  • Only displays if the payer has multiple entities
Idap Unique payee identifier (the payee ID)
Income type The income type applied to the payment (see Income types)
Income code The income code associated with the income type (see Income types)
Tax name The name of the payee on the tax form
Payee name Payee first and last name, and company name (if applicable)
Tax form type Type of tax form submitted by payee (see Tax form & entity types)
Tax form date signed The date the tax form was signed by the payee
Entity residence country
  • The country in which the payer entity resides (based on the payee's selected treaty country)
  • If the field is empty, the payee did not select a treaty.
US taxpayer identification number The tax payer's identification number (for payees residing in the US)
Foreign taxpayer identification number The tax payer's identification number (for payee's residing outside the US)
Ch. indicator A code identifying if a payment’s withholding tax rules fall under Chapter 3 or Chapter 4 of the Internal Revenue Code.
Ch. 3 exemption code A code explaining why no taxes are being deducted from your payment to the payee if they're a non-US person.
Ch. 4 exemption code A code used to specify the particular reason that a payment to a foreign entity or individual is exempt from FATCA withholding.
Ch. 3 status code

The status code of the payee under Chapter 3, according to the chapter 3 status that was entered on the W-8 form. It ensures the correct withholding tax rate when paying the payee.
Ch. 4 status code

It relates to FATCA regulations and doesn't apply to income codes 10, 11, 12, and 23.

You can add Chapter 4 status code info to the preparation form if you feel it applies to your 1042-S tax form.

LOB code The Limitation on Benefits (LOB) code for the LOB article of the treaty claimed by the payee
Street Permanent residence street that was entered on the W-8BEN or W-8BEN-E forms
State

Permanent residence state/ province that was entered on the W-8BEN or W-8BEN-E forms
City

Permanent residence city that was entered on the W-8BEN or W-8BEN-E forms
Zip

Permanent residence zip/ postal code that was entered on the W-8BEN or W-8BEN-E forms
Country

Permanent residence country that was entered on the W-8BEN or W-8BEN-E forms
Payment method Payee payment method
Payment method identifier An identifier for the payment method used
Withholding amount The amount withheld calculated from the portion of the payment that was US sourced
Payments total submitted amount The submitted amount includes only the portion of the payment that is US sourced
Withholding rate The withholding rate used to calculate the withholding amount

Required user roles View Payments & View Secure Details

The DAC7 preparation report allows you to download a report containing each payee’s unique identification number, tax form responses, financial account information, and payments grouped by quarter.

To download:

  1. Click the Reports tab.

  2. In the menu, under Tax forms, select DAC7 preparation.

  3. In the Year field, click Drop-down arrow and select a report year.

  4. Click Download CSV.

Field descriptions

The DAC7 preparation report contains the following fields.

FIELD

DESCRIPTION
Idap Unique payee identifier (the payee ID)
Payee name The payee's first and last name, and company name (if applicable)
Tax form date The date the DAC7 form was submitted by the payee
Tax name The name of the payee on the DAC7 form
Payee type Indicates if the payee is registered for tax purposes as an individual or entity
Government entity Indicates if the payee company is a government entity
Traded entity Indicates if the payee company is publicly traded or a related entity of a publicly traded company
Business registration number The payee’s business registration number
Date of birth The payee’s date of birth
Street Primary address street that was entered on the DAC7 form
City Primary address city that was entered on the DAC7 form
Zip Primary address zip/ postal code that was entered on the DAC7 form
Country Primary address country that was entered on the DAC7 form
TIN issuing country The country that issued the payee’s Tax Identification Number
TIN

The payee’s Tax Identification Number

There will be multiple TIN issuing country and TIN columns for payees with multiple TINs
Does not have EU/UK TINs Indicates if the payee marked they do not have an EU/ UK TIN
Country of birth The payee’s country of birth if the payee did not provide a TIN
City of birth The payee’s city of birth if the payee did not provide a TIN
VAT ID

The payee’s VAT ID

*There will be multiple VAT ID columns for payees with multiple VAT IDs
Does not have EU/UK VAT IDs Indicates if the payee marked they do not have an EU/ UK VAT ID
Permanent Establishment Country

The payee’s permanent establishment country

*There will be multiple permanent establishment country columns for payees with multiple permanent establishment countries
Payment method Payee’s payment method
Payment method identifier An identifier for the payment method used
Financial account holder Name on payee’s payment method account
Q1 net payments amount The total amount of all payments made to the payee in Q1
Q1 net payments currency The currency of "Q1 net payments amount"
Q1 fees The total amount of fees incurred by the payee for payments made to the payee in Q1
Q1 fees currency The currency of “Q1 fees”
Q1 withholding amount The sum of amounts withheld on payments made to the payee in Q1
Q1 withholding currency The currency of “Q1 withholding amount”
Q2 net payments amount The total amount of all payments made to the payee in Q2
Q2 net payments currency The currency of "Q2 net payments amount"
Q2 fees The total amount of fees incurred by the payee for payments made to the payee in Q2
Q2 fees currency The currency of “Q2 fees”
Q2 withholding amount The sum of amounts withheld on payments made to the payee in Q2
Q2 withholding currency The currency of “Q2 withholding amount”
Q3 net payments amount The total amount of all payments made to the payee in Q3
Q3 net payments currency The currency of "Q3 net payments amount"
Q3 fees The total amount of fees incurred by the payee for payments made to the payee in Q3
Q3 fees currency The currency of “Q3 fees”
Q3 withholding amount The sum of amounts withheld on payments made to the payee in Q3
Q3 withholding currency The currency of “Q3 withholding amount”
Q4 net payments amount The total amount of all payments made to the payee in Q4
Q4 net payments currency The currency of "Q4 net payments amount"
Q4 fees The total amount of fees incurred by the payee for payments made to the payee in Q4
Q4 fees currency The currency of “Q4 fees”
Q4 withholding amount The sum of amounts withheld on payments made to the payee in Q4
Q4 withholding currency The currency of “Q4 withholding amount”

Required user role None

The Manual documents activity report is only for payers located in the United States who use the W-8 collection flow. This log provides you with the audit trail of all documents uploaded (includes manual tax forms W-8IMY, W-8ECI, W-8EXP, 8233 and supporting documents).

To download:

  1. Click the Reports tab to open the list of available reports.
  2. In the menu, under Tax forms, select Manual documents activity. The right side of the screen populates with information related to the report.

  1. In the Date field, select either Range or Month.

  1. In the Document selection field, select one of the following:
    • All — if you want a report of all documents (reviewed and pending review)
    • Pending review — if you want to filter the report to show only documents pending review
    • Reviewed — if you want to filter the report to show only reviewed documents
  2. Click Download CSV.

Field descriptions

The Tax Form Documents report contains the following fields.

field

description
Submitted date The date the payee uploaded the tax form document to Tipalti
Document name The name of the tax form document
Idap Unique payee identifier ("Idap")
Payee name Payee first and last name
Tax form type Type of tax form submitted by payee (see Tax form & entity types)
Tax form date signed The date the tax form was signed by the payee
Review date The date the payer reviewed the tax form document
Review decision

The reviewer's decision after reviewing the tax form document:

  • Approved
  • Rejected
Reviewer The reviewer's email address