Can I Have a Negative Payment Amount?
Yes, but only in certain cases. Each payment amount must be reported in U.S. dollars and cents, with the last two positions representing cents. The 1099FIRE software will automatically strip out dollar signs, commas, and decimal points when formatting the data.
Negative Payment Reporting
A negative payment amount is only allowed on specific forms: Form 1099-B, Form 1099-OID, and Form 1099-Q. To report a loss, place a minus sign (–) in the left-most position of the payment amount field.
Large Payment Amounts
If your payment amounts exceed the 12 field positions allotted, the IRS requires you to submit an additional Payee “B” Record for the extra amount. The records cannot be exactly the same or the IRS may flag them as duplicates.
Example:
-
For Form 1099-K reporting $12,000,000,000.00:
-
The first “B” record would show $8,000,000,000.00
-
The second “B” record would show $4,000,000,000.00
-
In this case, one substitute Form 1099-K can be sent to the recipient to show the total aggregated amount across multiple “B” records.