Do-It-Yourself 1098T's using Banner

Presented by: Judy Kay CraftSouth Texas College of Law

April 13, 2010Session ID 1007

2

Session Rules of Etiquette

• Please turn off your cell phone/pager

• If you must leave the session early, please do so as discreetly as possible

• Please avoid side conversation during the session

Thank you for your cooperation!

Session ID 1007

3

Do-It-Yourself 1098T's using Banner

• Thanks to Banner, processing 1098T's is no longer an annual nightmare which consumes a programmer analyst 's man month.

• End user now runs all the procedures from copying tax rules to a new year to printing the student notifications with only a little help from Information Systems

• Information Systems handles the electronic filing to the IRS to limit access to the database server

• The pitfalls and short cuts of STCL's journey towards no-sweat 1098's should help not only those who want to DIY, but also those who still outsource notifications

Session ID 1007

4

Session Agenda

• What’s a “STCL” (stĭk′əl)?

• Current Process Flow

• Our Path to Progress

• Important References

• Questions & Answers

Session ID 1007

What's a "STCL" (stîk΄əl)?About South Texas College of Law

6

What's a "STCL" (stîk΄əl)?

• It's an acronym for South Texas College of Law

Session ID 1007

About South Texas College of Law

• South Texas College of Law is private, non-profit ABA accredited law school

• Located in downtown Houston, it is in walking distance of municipal, county, state, and federal courts

• Founded in 1923 as a YMCA night law school, but became independent of the Y in 1967

• "Stand alone" law school which accomodates full and part time students, admitting classes in both fall and spring

• STCL has very active advocacy teams which have won 102 national championships to date.

7Session ID 1007

Current Process Flow

9

Current Process Flow

• Copy tax reporting rules to new tax year using TSATAXR

• Run TSP1098 in Test mode• Review the error report and correct missing addresses

and SSN's. • Spot check selected students with TSATAXN to check

for reporting problems. • Run TSP1098 in official mode• Make sure TSA1098 has up to date information• Run TSR1098 "S" mode to print the student notifications• Mail to students by deadline• Run TSR1098 for IRS file notification

Session ID 1007

• Must understand tax reporting rules first!• Tax Rules have a Tax Reporting Code and a Tax Year

10Session ID 1007

STOP

Tax Reporting Codes

• Tax Reporting Codes are in TTVREPT• Each tax year must have a CB (Qualified Charges) rule • Each tax year must have a SG (Scholarships & Grants

rule• All other rules use supplemental report codes, and

aren't required by the IRS• We have 2 supplemental codes left over from our legacy

system. • P07 Student Payments & Loans• U01 Unqualified Charges• These codes help match the TSATAXN reports with

Student AR for error checking

11Session ID 1007

Tax Reporting Codes TTVREPT

12Session ID 1007

TSATAXR: Tax Reporting Rules

13Session ID 1007

TSATAXR – the blocks

• Key Block— Tax Report Code — Tax Year

• Terms & "Header" Block— Terms in tax year — Future Term Indicator— Enable Self Service 1098T

• Category Code Block— sum radio buttons— Category Code

• Exclusions Detail Codes• Detail Code Block

— sum radio button— Detail Code

14Session ID 1007

Tax Rules – Keep It Simple

• Tax Rules are based on Detail Codes and/or Detail Category Codes

• Each AR transaction has a detail code• Can define tax rules by individual detail code, but hard

to maintain• Each detail code has a category• Defining categories so that no detail codes need to be

excluded from a tax rule is easierExample: We had also Financial Aid originated payments

as category FA. To define the SG rule using category FA, we then had to exclude all the loan detail codes

Solution: added new category FAL for loans

15Session ID 1007

Loans in category FA detl exclusions from SG rule

16Session ID 1007

Loans in category FA, detail added to P07 rule

17Session ID 1007

After category FAL no exclusions SG rule

18Session ID 1007

After category FAL less detail in P07 rule

19Session ID 1007

Copying tax rules Fig 1 of 4

20Session ID 1007

Copying tax rules to new tax year

• Start with the old year in the key block, use options menu to get to copy rules (fig 1)—Make sure you copy the CB & SG rules or you'll get an

error when running TSP1098• Enter new tax year (fig 2)• All existing terms will be copied to the new rule• All future term radio buttons will be cleared (fig 3)• Delete the terms not in this tax year

—Don't do anything to the terms that were future• Insert the rest of the terms for new year (fig 4)

—You can't change term records that exist on the form.—Don't try to delete & then insert the former future terms–

Oracle error• Don't forget to flag future terms

21Session ID 1007

Copying Tax Rules Fig 2 of 4

22Session ID 1007

Copying Tax Rules Fig 3 of 4

23Session ID 1007

Copying tax rules Fig 4 of 4

24Session ID 1007

Run Tax Notification Process – Test Mode

• TSP1098 uses the tax rules and the table TBRACCD ( form TSADETL) is the form functional users recognize) to populate TTBTAXN ( form TSATAXN) for the tax year.

• It has 11 parameters, most of them are institution specific— I save parameter sets YYYYT & YYYYO for each year and

use the previous set to build the next one• Parameter 1 must be T for test• Parameter 2 must be the desired tax year• Parameter 3 should be B both for re-run indicator, since

you may be updating students and tax rules during testing

• This is when you need Banner Tax Relief Act (TRA) 1098-T Reporting Handboook

25Session ID 1007

Reviewing the Error Report

26Session ID 1007

But the .lis just has the parameters

27Session ID 1007

Checking the .log – oops missing tax rule

28Session ID 1007

TSATAXN

29Session ID 1007

TSATAXN – detail of charges billed

30Session ID 1007

TSATAXN Detail of Adjustments to Prior Charges

31Session ID 1007

TSATAXN – Detail of Scholarships and Grants

32Session ID 1007

Repeat if necessary until Good to Go!

• Until TSP1098 is run in official mode you can re-run it as needed

• You may need to change tax rules, if new details or categories were missed

• You may need to change prior year tax rules if there are problems with prior year adjustments— this is a good reason to simplify the tax rules, so it is

easier to maintain several years of tax rules• Make address, SSN corrections in SPAIDEN, not on

TSATAXN— every time you run TSP1098, it rebuilds TTBTAXN, which

is what TSATAXN displays

33Session ID 1007

TSA1098

34Session ID 1007

TSA1098 – Updating Institution Data

• Note the Transmitter Code— This is what the IRS calls a TTC — In Publication 1220 you will find FIRST TIME FILERS

QUICK REFERENCE GUIDE on page 2— Form 4419 (included in 1220) is the Application for filing

forms electronically— This can take up to 30 days, but you will get a nice letter

with your TTC. My packet also included the brochure Publication 3609

• Note the Transmitter name & contact name & phone— Whoever is named here needs to read Publicatoin 1220,

Part A, Section 11: Penalties Associated with Information Returns.

—Also, the transmitter should be on Form 4419

35Session ID 1007

Good to Go - Run TSP1098 in Official Mode

• Once missing addresses are corrected and ineligible (foreign students, auditing students, etc) are accounted for, and the the spot checked student accounts reconcile with TSATAXN, you are ready to run in official mode

• Use your test saved parameters and change parameter 1 to 'O'

• You can run Official Mode again to add new students, but it will recalculate if and only if you have made changes to tax rules

• What if I want to go back to test mode?— Have your DBA run a SQL change found in the appendix

of the Banner 1098 Handbook

36Session ID 1007

TSATAXN - Excluding ineligible students

37Session ID 1007

TSR1098 – Printing Student Notifications

• Printer Control – Select the printer with the forms!• We use Formfusion from Evisions, so use Special Print

Parameter• 18 Parameters, so use saved parameter set

— parameter 2 = 'O'— parameter 3 = 'S'— These set notification sent to student flag in TTBTAXN

(TSATAXN)

• This step can be skipped if you've outsourced printing & filing, but self service will not reflect sent status

38Session ID 1007

TSR1098 – Producing IRS electronic file

• Once again, used saved parameter sets—parameter 2 = 'O'—parameter 3 = 'I'—parameter 8 = 'Y'—parameter 11 = 'O'—parameter 18 = your OPE ID code— these set IRS notification flag in TTBTAXN (TSATAXN) and

create the file for the IRS• File for IRS is irs1220.dat

— I have the DBA email it, because it is on the database server

— IRS Publication 3609 gives step by step instructions for logging in to FIRE and uploading the file

39Session ID 1007

FIRE – IRS File Information Returns Electronically

• http://fire.irs.gov—Have schools TCC (tracking code) & TIN (tax id) handy— turn off popup blocking for browser session—make sure cookies are enabled

• if first time, create login & pin— else log in

• follow the menu for file transmittal

40Session ID 1007

Our Path to Progress

Our Path to Progress – Conversion Year

• No one was enrolled IN BANNER during the tax year, except for the future year spring enrollees

• Had to convert all prior 1098 records & load into TTBTAXN

• Had to create prior year tax rules to match the "converted years"

• This was by trial & error, at first just converted 1 year back—very embarassing to find out from the students that they

were missing

42Session ID 1007

Our Path to Progress – All Banner Data

• All Banner data much easier

— 3 man weeks vs 6 man weeks of conversion year

• Tax rules were still complicated

• Prior tax rule issues

• TSATRAF format had to be converted to outsource

format

43Session ID 1007

Our Path to Progress – More Category Codes

• Split FA category code

—FA for scholarships & grants

—FAL for loans

—FAW for tuition waivers

• Split FEE category code

— FMS qualified misc fees

—FMX unqualifed misc fees

44Session ID 1007

Our Path to Progress – No more outsourcing

• Evisions Form Fusion so numbers could hit boxes

— form folder caused majority of problems

• IRS filing suprisingly easy

— transmitted one test file, one original file, no errors

— with outsource, had to transmit multiple test files

• My time reduced to less than 1 man-week

• 2009 tax year was even faster

45Session ID 1007

Important References

Important References

• Banner Tax Relief Act (TRA) 1098-T Reporting Handbook— Chapter 2 Process Flow— Appendix

• IRS Publication 1220: Guide for Electronic Filing— revised each tax year

• IRS Instructions for 1098-E and 1098T — revised each tax year

• IRS Publication 3609 Filing Information Returns Electronically— revised each tax year

• Banner Accounts Receivable User Guide

47Session ID 1007

Questions & Answers

49

Questions & Answers

• Please ask questions. I love questions.

Session ID 1007

50

Summary

• Keep Tax Rules Simple by using category codes that need no exclusions

• Copy Tax Rules from year to year• Save TSP1098 & TSR1098 parameter sets• Make notes in Banner Tax Relief Act (TRA) 1098-T

Reporting Handbook• If you DIY, review current IRS 1220: General Instructions

for Forms 1099, 1098, 3921, 3922, 5498, and W-2G• Transmitting the IRS file is easy, once you have the TCC

number • Don't Panic. The 1098-T Reporting Handbook Appendix

has the SQL statements so your DBA can reset notification flags

Session ID 1007

Thank You!Judy Kay Craftjcraft@stcl.edu

Please complete the online class evaluation formSession ID 1007

51

SunGard, the SunGard logo, the Open Digital Campus, Banner, Luminis, and PowerCAMPUS are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. © 2009 SunGard. All rights reserved.

© 2010 SunGard. All rights reserved.

Session ID 1007