Thursday, November 17, 2011 – Integrated Data Management Systems, Inc. (http://www.idmsinc.com/), a leading provider of W-2 and 1099 software, today announced that they have launched the 2011 version of the company’s Account Ability Tax Form Preparation software. Account Ability has helped small and medium size businesses comply with IRS and SSA reporting requirements for more than 25 years. The free trial version has been posted to IDMS’s download page (http://www.IDMSInc.com/Downloads.php).
Account Ability includes electronic reporting, plain paper filing and taxpayer identification number (TIN) matching for the entire family of information returns (1098, 1099, 3921, 3922, 5498, W-2G) and annual wage reports (W-2, W-2C). Account Ability complies with IRS Publication 1220, SSA EFW2/EFW2C reporting specifications and sections 6039, 6050W of the Internal Revenue Code.
Account Ability is a robust network ready software package which, together with its entire database, resides on your computer, not that of some online service. Therefore, users can enter as many returns as desired without ever incurring extra charges, as is common with most online processing systems.
Recipient returns are either typed into windows that resemble actual tax forms or imported from spreadsheets, IRS/SSA compliant transmittals and delimited text files. The Import Mapping Utility, which is included for free, facilitates the job of converting delimited text files to a format compatible with Account Ability.
Recipient copies can be printed on ordinary copy paper, preprinted forms, pressure seal forms, or electronically delivered using Account Ability’s innovative FileCabinet™ eDelivery Software (http://www.IDMSInc.com/FileCabinet.php). Account Ability also offers an optional Print and Mail Service (http://www.IDMSInc.com/PrintMail.php) to help eliminate the headaches associated with the once-a-year bulk print job required for tax compliance.
Account Ability is in a class of its own. What sets Account Ability apart from any of its counterparts is its wealth of online help, ease of use, excellent technical support, low price and inclusion of all of the following returns:
Form 1098 - Mortgage Interest Form
Form 1098-E – Student Loan Interest Statement
Form 1098-T – Tuition Statement
Form 1098-C – Contributions of Motor Vehicles, Boats, and Airplanes
Form 1099-A – Acquisition or Abandonment of Secured Property
Form 1099-B – Proceeds from Broker and Barter Exchange Transactions
Form 1099-C – Cancellation of Debt
Form 1099-CAP - Changes in Corporate Control and Capital Structure
Form 1099-DIV - Dividends and Distributions
Form 1099-G – Certain Government Payments
Form 1099-H - Health Coverage Tax Credit (HCTC) Advance Payments
Form 1099-INT - Interest Income
Form 1099-K – Merchant Card and Third Party Network Payments
Form 1099-LTC - Long-Term Care and Accelerated Death Benefits
Form 1099-MISC - Miscellaneous Income
Form 1099-OID - Original Issue Discount
Form 1099-PATR - Taxable Distributions Received From Cooperatives
Form 1099-Q - Payments From Qualified Education Programs
Form 1099-R - Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Form 1099-S - Proceeds From Real Estate Transactions
Form 1099-SA- Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
Form 3921 - Exercise of an Incentive Stock Option Under Section 422(b)
Form 3922 - Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c)
Form 5498 - IRA Contribution Information
Form 5498-ESA - Coverdell ESA Contribution Information
Form 5498-SA - HSA, Archer MSA, or Medicare Advantage MSA Information
Form W-2G - Certain Gambling Winnings
Form W-2 - Wage and Tax Statement
Form W-2C - Corrected Wage and Tax Statement
Account Ability 1099 and W2 Tax Form Preparation Software is definitely the most complete, cost effective 1099 and W2 software solution on the market today.
For more information, visit either
or call IDMS Account Ability at 1-800-582-5831
Integrated Data Management Systems, Inc. (IDMS), developers of the industry-leading Account Ability Tax Form Preparation Software, has partnered with Data Fabrication, developers of PDFBlaster, to deliver Account Ability FileCabinet – an end-to-end W-2 and 1099 electronic delivery system. The FileCabinet system is analogous to a virtual file cabinet consisting of an unlimited number of filer specific drawers (eDrawers), each capable of holding an unlimited number of employee W-2 and recipient 1099 returns (eStatements).
Information returns – 1098, 1099, 3921, 3922, 5498 − and annual wage reports – W-2, W-2C − printed to the FileCabinet printer are automatically converted to encrypted PDF eStatements before being electronically delivered (eDelivered) to a filer’s eDrawer for secure access via the web. The FileCabinet then notifies each recipient that he/she has a return ready for viewing, printing, or downloading. All of the compliance required by IRS for electronic delivery is handled by the FileCabinet, so you needn’t worry.
What’s really convenient about this solution is that the Account Ability software is capable of importing IRS Pub 1220 and SSA EFW2 compliant transmittals with just a couple of mouse clicks. So, if your host system can eFile, then you can also eDeliver.
IDMS Account Ability
The 2011 Year-end Tax Season is rapidly approaching so I wanted to let all users of Sage Pro Series know about an exciting new W2 and 1099 tax form solution. Data Fabrication, developers of PDFBlaster for Pro Series, has partnered with Integrated Data Management Systems, Inc. (IDMS), developers of the industry-leading Account Ability Tax Form Preparation Software, to deliver Account Ability FileCabinet – an end-to-end W2 and 1099 processing solution for users of Sage Pro Series Payroll and Accounts Payable.
In the past, the electronic delivery (eDelivery) of information returns (1098, 1099, 3921, 3922, 5498) and annual wage reports (W2, W2C) via the web as electronic statements (eStatements) was only possible for large corporations armed with web developers, software programmers, database administrators and network engineers. Until now! The innovative Account Ability FileCabinet system makes the entire process of creating eStatement PDFs, posting them to a secure website, notifying the recipient and managing electronic consent as easy as Click..Print..eDeliver.
The Account Ability FileCabinet system is analogous to a virtual file cabinet consisting of an unlimited number of filer specific drawers (eDrawers), each capable of holding an unlimited number of eStatements.
Information returns and annual wage reports printed to the FileCabinet printer are automatically converted to encrypted PDF eStatements before being eDelivered to a filer’s eDrawer for secure access via the web.
What’s really convenient about this solution is that the Account Ability FileCabinet system automatically reads and imports the W2 and 1099 electronic media files created by the Pro Accounts Payable and Payroll modules with only a few mouse clicks. The following link shows just how simple the process is:
Benefits of using eDelivery include:
* eDelivery can save as much as 90% over traditional mailing costs
* Online delivery provides access to tax statements earlier than the traditional mail process
* Online delivery eliminates the chance that the tax statements will get lost, misdirected or delayed during delivery or misplaced after initially receiving it
* Access is available at the secure www.mypdftaxforms.com web site any time of day or weekends. Users can receive tax statements even while traveling or on assignment away from their home address.
* Multiple copies can be printed at the user’s convenience
* Receiving tax statements electronically helps the environment
To learn more about the FileCabinet system, visit
For pricing information, visit
Pro Series users are going to love the convenience and cost savings associated with eStatement eDelivery!
As amended by Section 403 of the Tax Relief and Health Care Act of 2006, section 6039 requires corporations to file an information return with the IRS, in addition to providing employees with an information statement, following a stock transfer. Returns required by §1.6039-1(a) of these final regulations and information statements required by §1.6039-2(a) of these final regulations must be made using Form 3921, Exercise of an Incentive Stock Option Under Section 422(b). Returns required by §1.6039-1(b) of these final regulations and information statements required by §1.6039-2(b) of these final regulations must be made using Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c).
Account Ability (try it now) includes electronic filing and plain paper filing for the entire family of information returns, annual wage reports, aggregate forms 3921, 3922, traditional forms 3921, 3922, and pressure seal forms 3921, 3922. Account Ability’s free Import Mapping Utility facilitates the job of importing data from spreadsheets, delimited text files and data extractions from Equity Edge® by E*TRADE Financial Corporation.
Form 3921 – Exercise of an Incentive Stock Option (ISO) Under Section 422(b)
For each transfer made during the previous year, the employer must provide to the IRS on Form 3921 the following:
- Name, address and EIN of the company transferring the stock
- The name, address and EIN of the company whose stock is being transferred
- Name, address and social security number of the recipient of the stock transfer
- Date of option grant
- Exercise price per share
- Date of option exercise
- Fair market value per share on the date of exercise
- Number of shares transferred.
Form 3922 – Transfer of Stock Acquired Through an Employee Stock Purchase Plan (ESPP) Under Section 423(c)
For each transfer made during the previous year, the employer must provide to the IRS on Form 3922 the following:
- Name, address and social security number of the recipient
- Name, address and EIN of the company whose stock is being transferred
- Date of option grant
- Fair market value per share on the grant date
- Exercise price per share
- Date of option exercise
- Fair market value per share on the date of exercise
- Date the legal title to the shares was transferred
- Number of full and partial shares that were transferred.
Statements to participants for ISOs and ESPPs
Under the new law, statements still must be furnished to participants with regard to both ISOs and ESPPs. These statements must be provided by January 31, and it is anticipated that either delivery by mail or electronically generally will be permitted.
The deadlines to file Forms 3921 and 3922 with the IRS are February 28 for paper filers and March 31 for electronic filers. The deadline for distributing the statements to employees is still January 31.
You are required to file Forms 3921 and 3922 electronically if you have 250 or more returns to file with the IRS. This is a per-form requirement. So if you have 251 Forms 3921 to file and only 249 Forms 3922, then you only have to file the Forms 3921 electronically. Likewise, if you have 249 of each to file, then you don’t have to file any of the forms electronically. But you can always file electronically on a voluntary basis.
Penalties for Late Filings
- $15 per form if you file within 30 days of the deadline (maximum of $75,000 per year)
- $30 per form if you file by August 1 (maximum of $150,000 per year)
- $50 per form if you file after August 1 or never complete the filing (maximum of $250,000 per year)
- At least $100 per form if the late filing or failure to file is due to intentional disregard (no annual maximum). It could be very expensive to intentionally disregard these filings.
In addition, if you fail to distribute the employee statements, you can be subject to an additional penalty of $50 per statement (maximum of $100,000 per year). The same penalty for intentional disregard applies–so if you intentionally disregard both filing the return and distributing the employee statement, then the minimum penalty is $200 per transaction with no maximum.
Significant changes are required for the 2011 Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, to reflect Internal Revenue Code section 6045(g), which was enacted by Public Law 110-343, the Emergency Economic Stabilization Act of 2008. Effective January 1, 2011, section 6045(g) requires securities brokers and certain other entities to report to each customer, and to the IRS, the customer’s basis in their securities sales and other dispositions.
Account Ability Tax Form Preparation software prepares information returns 1098, 1099, 3921, 3922, 5498, W2G and annual wage reports W2, W2C quickly and easily. Account Ability includes electronic filing, plain paper filing and electronic delivery.
Section 6050W of the Internal Revenue Code requires information returns to be made for each calendar year by merchant acquiring entities and third party settlement organizations with respect to payments made in settlement of payment card transactions and third party payment network transactions occurring in that calendar year. This requirement to make information returns applies to returns for calendar years beginning after December 31, 2010.
Under new section 6050W, any payment settlement entity making payment to a participating payee in settlement of reportable payment transactions must make a return for each calendar year to be filed with the Service, and furnish a statement to the participating payee, setting forth the gross amount of such reportable payment transactions, as well as the name, address, and taxpayer identification number (TIN) of the participating payees.
2011 Form 1099-K, Merchant Card and Third-Party Payments, is a new information return that payment settlement entities will use to report the gross amount of merchant card or third-party payments.
Notice 2011-71 provides guidance under section 6050W of the Internal Revenue Code regarding the documentation and reporting obligations of payment settlement entities that are United States payors making payment outside the United States to an offshore account.
Notice 2011-71 will be in IRB 2011-37, dated September 12, 2011.
The 2011 release of Account Ability will include Form 1099-K and comply with IRS Sec 6050W. Account Ability prepares information returns (1098, 1099, 3921, 3922, 5498, W2G) and annual wage reports (W2, W2C) electronically, on laser and generic dot matrix printers. Account Ability includes Bulk TIN Matching at no extra charge.
Try Account Ability today for free by visiting
April 14, 2011 – Notice 2011-38 announces an extension and modification of the pilot program announced in Notice 2009-93, 2009-51 I.R.B. 863, which authorized filers of certain information returns to truncate an individual payee’s nine-digit identifying number on specified paper payee statements furnished for calendar years 2009-2010, if the filers met certain requirements.
Account Ability complies with IRS Notice 2011-38, which extends and modifies IRS Notice 2009-93, which created a pilot program allowing filers of information returns to truncate an individual payee’s nine digit identifying number (e.g. XXX-XX-1234). IRS Notice 2011-38 extends the pilot program as to paper payee statements furnished for calendar years 2011 and 2012. This notice also modifies the requirements announced in Notice 2009-93 by excluding Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, from the pilot program as it is an “acknowledgement” required by section 70(f)(12), rather than a payee statement.
● Print W-9 forms for recipients with invalid or missing TINs
● Electronically file with IRS via IRS FIRE
● Electronically file with SSA via SSA BSO
● Electronically file with their state
● Print recipient and filer copies on ordinary blank paper
● Print recipient and filer copies on pressure seal forms
● Print recipient and filer copies to PDF
● Edit returns prior to processing
● Print detailed control reports
● And more!
Assume the authoring software desires to process forms 1099-MISC. The application creates a simple text file, say C:\1099RETURNS.TXT, which contains the recipient returns to be processed. Finally, a call is made to “AADM C:\1099RETURNS.TXT”. The end user now loads Account Ability and merges C:\1099RETURNS.TXT
It is that simple.
What about end user technical support?
IDMS Account Ability provides free unlimited technical support to all licensed users via email, remote desktop, or toll free 1-888-IDMSINC (436-7462).
Is there a cost to the software developer?
There is no cost to the developer. End users, however, will need to purchase a copy of Account Ability for the current reporting year.
About IDMS Account Ability
IDMS Account Ability has been providing W-2 and 1099 processing software to professional tax preparers for over 25 years. IDMS Account Ability also offers a complete line of discounted W-2 and 1099 laser forms, laser checks, professional tax presentation supplies and outsourcing services.
If you are interested in partnering with IDMS Account Ability, send your contact information to
For more details visit