1099 REPORTING GUIDELINES FOR PAYORS

DISCLAIMER: This information is provided as a courtesy and is not a substitute for professional tax advice. Payors should consult with qualified tax professionals regarding their specific obligations.

Your Tax Reporting Obligations

As a payor, you are legally required to issue Form 1099-NEC to any non-employee official who you paid $600 or more during the calendar year. This is an IRS requirement that applies regardless of whether payments were processed through your payment processor, paid directly, or paid in cash at events.

Important Deadlines

• January 31st: Form 1099-NEC must be furnished to recipients (officials)
• January 31st: Form 1099-NEC must be filed with the IRS
• Note: The IRS may assess penalties for late or missing filings

Ref Insight 1099 Data File

To assist with your tax reporting obligations, Ref Insight offers a secure 1099 Data File containing:

• Official's full legal name
• Official's complete mailing address
• Official's Tax ID number (SSN/EIN)
• Total amount paid according to invoice records in our system
• Payment breakdown by type

Ref Insight has a built-in system for securely collecting and storing officials' Tax IDs, legal names, and addresses. This information is automatically included in the 1099 data file when it is generated, eliminating the need for you to separately collect this sensitive information.

This data file can be requested by emailing [email protected]. There is a $99 charge for the preparation and secure delivery of this file. The data file will be delivered via secure email link requiring a passcode and is formatted to be compatible with most tax filing systems.

Filing Options

You have several options for fulfilling your 1099 filing requirements:

1. Internal Processing: Use our data file with your accounting software to prepare and file 1099 forms directly
2. Accountant Assistance: Forward our data file to your accountant or tax professional
3. Third-Party Services: Use services such as Tax1099.com or TaxBandits.com to process and file forms
4. Payment Processor: If you use Routable (our integrated payment partner) for processing payments, you may be able to work with them for streamlined filing (additional fees may apply)

W-9 Collection: Routable offers an online W-9 collection tool that allows you to request formal W-9 forms from officials through their secure interface. Officials can complete these forms electronically, helping ensure you have proper documentation for tax filing purposes.

Important Note: While payment processors like Routable may issue 1099-K forms in certain situations based on their own reporting obligations as payment processors, this does NOT replace or eliminate your obligation to issue 1099-NEC forms to officials you've paid $600 or more. These are separate reporting requirements with different purposes.

Important Notes

• Payor Responsibility: While we provide the data file as a courtesy, the legal obligation for filing accurate and timely 1099 forms rests entirely with you as the payor. We have limitations such as not knowing the full extent of payments you may have made throughout the year.

• Tracking Cash Payments: Ref Insight provides tools to document all payments, including cash. Each assignment in the system can have an associated invoice marked "Paid at the Field." Our "Postgame Workflow" is specifically designed to capture this payment information. We strongly encourage assignors and administrators to follow this workflow to properly document all payments, including cash transactions.

• Benefits of Proper Documentation: When all payments are properly documented in the system:

  • Officials can see accurate payment history throughout the year
  • Your 1099 Data File will be more comprehensive and accurate
  • Both payors and officials can track totals as the year progresses
  • The need for year-end reconciliation is greatly reduced

• Reconciliation: We strongly recommend comparing our data with your internal payment records before filing to ensure all payments are properly accounted for. Undocumented payments will not be included in the data file.

• Compliance: The IRS requires timely and accurate filing of all required 1099 forms

• State Requirements: Some states have additional filing requirements beyond federal 1099s

• Minor Officials: Special considerations apply for officials under 18 years of age (see section below)

Special Considerations for Minor Officials (Under 18)

For officials under 18 years of age:

1. Tax Reporting Status: Minors may still need to receive 1099-NEC forms if they earned $600 or more, as age does not exempt them from income reporting requirements.

2. Parent/Guardian Communication: All tax-related communications should include the minor's parent or guardian. This includes delivering 1099 forms.

3. Form Addressing: Consider addressing the 1099 with "Parent/Guardian of [Minor's Name]" in addition to the minor's name.

4. Privacy Concerns: Take extra precautions when handling minors' personal information, including Social Security Numbers and address details.

5. Documentation: Keep clear records of all payments to minors, as these might face additional scrutiny.

6. SafeSport Compliance: Ensure all communications comply with SafeSport requirements, using appropriate channels and including parents/guardians on all correspondence.

Many minor officials may be claimed as dependents on their parents' tax returns, but they are still responsible for reporting their own income. The $600 reporting threshold applies regardless of age.

Common Questions

Q: What if I don't have an official's Tax ID? A: The official should have provided this information when registering with our system. If missing, you should request it using IRS Form W-9.

Q: What if an official worked for multiple organizations within our association? A: You only need to issue a 1099 based on what your organization paid directly. Each legal entity that paid $600+ must issue its own 1099.

Q: What if we paid officials through multiple methods (system, cash, check)? A: You must combine all payment methods when determining if an official meets the $600 threshold.

Q: Do we need to issue 1099s to officials who are minors? A: Yes. Age does not exempt someone from receiving a 1099-NEC if they meet the $600 threshold. Follow the guidelines in our "Special Considerations for Minor Officials" section.

Getting Help

• For questions about accessing your 1099 Data File, contact Ref Insight Support
• For tax filing questions, please consult with a qualified tax professional
• For technical issues with third-party filing services, contact their support teams directly