IRS Form 1099 Requirement The IRS Form 1099 is an information return required by the IRS to be completed by all businesses for any reportable transactions made during the calendar year. Civil Air Patrol files these on behalf of all wings, regions and units at the national level.
In order to determine which transactions are reportable, an IRS Form W-9 must be obtained from every vendor that Civil Air Patrol engages in business. Reportable transactions are not limited to NHQ level. All Region, Wing, and Unit transactions must also be examined to determine whether or not they are reportable. In order to do this, each Wing is responsible for obtaining the necessary information from vendors.
Each Wing must request that all vendors complete an IRS Form W-9.
W-9 Request Letter - Example W9 Request Letter.pdf
IRS Form W-9 - http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=3
Once this information is received, Wing personnel must determine whether the vendor has reportable transactions. Please see the 1099 PowerPoint presentation for more information on what is reportable. Wing Financial Analysts are also available to provide guidance.
1099 PowerPoint - 1099s.ppt It should be noted that awards and scholarships given to members are reportable items. Flight scholarships are also reportable, even if no money has changed hands. It is the Wing’s responsibility to track all flight scholarships given and to provide that information to NHQ. Wing’s should also notify all members who receive awards and scholarships that the items may be taxable to the member.
Flight Scholarship Letter - IRS Letter re Scholarships.pdf All information must be submitted to NHQ no later than January 15th for payments made the preceding calendar year, not fiscal year. The information should be submitted on the 1099 Information Request Form.
1099 Information Request Form - 1099 Information Request.xls Reporting requirements also exist for raffles and donations of motor vehicles.
Please notify your Wing Financial Analyst of any raffle or donation that your Wing receives as soon as possible. The IRS deadline for reporting these items is not an annual requirement, but a case by case requirement.
All IRS reporting will be handled by NHQ. It is the responsibility of each Wing to provide NHQ with the necessary information in a timely manner so as to avoid late charges and penalties. Wings are also responsible for the accuracy of information obtained. Any wing that incurs late charges or penalties will be held responsible for the charges.