Change of Default 1099 Setting in REsource

Effective Date: 
Wednesday, October 25, 2023 - 10:00am

Currently, whenever a new seller is added in the Seller tab of Order Entry in Resource, the checkbox "Do Not Generate 1099" is checked by default. The original procedure was that after the closing, if the transaction is reportable for 1099 purposes, then the closer or some other person would uncheck the checkbox. Unfortunately, too frequently that procedure has not been followed and a number of transactions that are reportable are being missed in our 1099 reporting.

Since the exemptions from reporting are optional (26 CFR §1.6045-4(a)), it is more accurate for the default setting of the checkbox to be unchecked, and if the transaction does qualify for an exemption from reporting, then the checkbox may then be checked.

Effective immediately, upon adding a new seller in Resource, the checkbox "Do Not Generate 1099" will be set to be unchecked.

Posted on: Wed, 10/25/2023 - 9:51am