Form 1099-A is used to report the acquisition or abandonment of any secured property. There are two exceptions to note: 1) certain types of property held for personal use (most often a primary household vehicle) or 2) if the property is held outside the U.S. and the borrower has submitted a statement to the lender claiming a foreign person exemption. Form 1099-A should be provided to each borrower for money in connection with your trade or business or if the property has been abandoned.
Finding the Right Software Tool
Typically, firms that use form 1099-A are also required to report other 1099 business filing forms, pointing up the need for a comprehensive accounting software. The W-2/1099 Forms Filer from Advanced Micro Solutions (AMS) offers software support for all your w-2, w-3, and 1099 filing requirements. This software provides a menu-driven platform with intuitive functionality across a full range of data management features.
- Data Entry: Information can be entered either through a spreadsheet or a screen that resembles the actual form. These options deliver better data entry efficiency while reducing errors. Users can import data from any number of common files.
- Data Printing & Reporting: Reports include tables, worksheets, client letters, recipient lists, and mailing labels. Use encrypted PDF files for security. Use SSN/TIN hash totals to verify data accuracy. Easy form alignment and large-batch print jobs allow for automated, error-free printing. With the Software-Generated Forms module, you can print many of your own filing forms.
- More Features: Free network installation and multiple PC installation (site license may apply). Supports up to 1,999 payers/employers. Payer backup and restore.
AMS is an excellent solution for all your filing needs, including form 1099-A.
1099-A Form vs. 1099-C Form
One of the reasons this form is so rarely used is because it’s often included within the 1099-C form, rendering form 1099-A filing moot. As a result, you may be unfamiliar with form 1099-A.
Here’s how they differ: Secured property is property that has been offered as part of a loan agreement. Thus, when it’s abandoned—including home foreclosures and repossessed vehicles—it’s almost always done so for the purposes of a partial or complete loan repayment. This cancellation of debt is accounted for with form 1099-C. The information for boxes 4, 5, and 7 on that form take care of the tax accounting for the acquisition or abandonment of this property.
It is interesting to note that the connection between 1099-A and 1099-C is so strong that the IRS actually publishes the filing instructions for each form in the same document.
While our Forms Filer software provides support for all your 1099 forms filing, AMS also provides comprehensive software solutions for a wide range of accounting and payroll service needs. With custom and modular software packaging, we can provide more cost-effective solutions that are also tailored for your firm’s priorities.
The best way to understand how our software works is to download our free software demo. When you’re ready to purchase your software, you can do easily and securely online, or you can talk to our Sales and Information team at (800) 536-1099. Either way, you’ll also have access to our customer support resources and the same standard of excellence we’ve been offering our W2, 1099, and payroll clients for more than 30 years. If you want to ensure you correctly file form 1099-A, AMS is the answer.