State of Utah Producers Account Number

[kct820748]

During the final review TurboTax keeps giving me an error saying the State of Utah ID number input for 1099-MISC needs to be 14 characters ending with WTH, and won't let me continue.  While that is true for most income reported on 1099-MISC, it is not true for royalty income.  The State of Utah income tax form, TC-40W, specifically says that for Utah Mineral Withholding Tax (box 2 on form 1099-MISC) the Utah ID number should be 14 characters ending in WMP.

https://tax.utah.gov/forms/current/tc-40-minipacket.pdf

I can trick TurboTax into accepting it by changing the extension to WTH, but wonder if that will flag an error with the IRS.

Has anyone else seen this issue?

[kct820748]

Also, I have found that if taxes paid to the state is entered in boxes 16-18 under 1099-MISC, the state return pulls that data in and combines it with the same taxes paid data reported from Utah form TC-675R. That doubles the amount of state taxes paid reported for mineral production, resulting in an error in the calculation of taxes owed.  The state has caught the error in years past and I have had to file amended returns until I figured out what was happening.

[gparob]

I am experiencing the same issue now.  This would be an easy fix if Intuit would accept the WPM account type for residents of Utah.  WTH and WPM are two different types of withholding accounts.  One is for income, the other is for ROYALTIES.  This error has tripped me up every year.  I'm really tired of it.  Intuit can do much better that this.  

[MonikaK1]

Yes, if you enter Utah state withholding from a Form 1099-MISC in the Federal section, and add Utah state withholding from a Form TC-675R in the Utah state return interview, TurboTax will include both withholding figures. I have reported the issue with the duplicated withholding from the two forms for investigation. 

To help us troubleshoot this issue, you can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions for TurboTax Online users: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing, determine what is going on in your return, and provide you with a resolution.

If you are using TurboTax Desktop:

1. From the black bar at the top of your screen, select Online
2. Click Send Tax File to Agent
3. Click Send on the message that pops up
4. TurboTax will create a "sanitized" copy of your return information with no personal info
5. Post the 7-digit token number here in this thread

In the meantime, users could opt not to enter the Utah state withholding on Royalty income reported on a Form 1099-MISC if it duplicates the amount on Utah Form TC-675R.

Regarding the Utah payer's state ID issue:

The Utah instructions for entering state withholding for a Form 1099 state that the last three characters of the payer's state ID number need to be "WTH". The Utah instructions for entering state withholding for a Utah Form TC-675R state that the last three characters of the payer's state ID number need to be "WMP". It is the reporting form used that determines which letters to enter for the last three characters.

The Utah instructions for entering Form W-2 and Form 1099 include the following regarding the Withholding Account Number: The first eleven characters are numeric and the last three are “WTH.”  If form W-2 or 1099 does not include this number, contact the employer or payer to get the correct number to enter on TC-40W, Part 1. 

The Utah instructions for entering Mineral Production Withholding reported on either Form TC-675R or from Utah Schedule K-1 include the following regarding the Mineral Withholding Account Number: The first eleven characters are numeric and the last three are “WMP.” If form TC-675R does not include this number, contact the payer to get the correct number to enter on TC-40W, Part 2. 

@kct820748 

@gparob 

[gparob]

token number is 1103093

[MonikaK1]

Thank you for the token number.

I have reviewed the file. Please check the Form 1099 entries in the Federal section. It appears as if two Forms 1099 have user entries in the Federal section with the same amounts of Royalties and UT withholding. Because the ID numbers are removed, I can't see if they were from different entities.

I didn't see any entries in the Utah return for Form TC-675R in the token file, but I made test entries and confirmed that any withholding entered in that Utah form is added to the Utah withholding entered in Form 1099 in the Federal section.

That issue has been reported for further investigation.

 [Edited 03/24/23| 9:37am PST]  (edited) 

@kct820748 

[gparob]

I actually own two parcels of land with mineral leases on both of them.  This is why I  have received two form 1099 misc .  So, I believe it is correct. Don't you agree?

[MonikaK1]

Thank you for the clarification. I had asked about the 1099's only because there were two with the same dollar amount.

We will provide an update in this thread regarding the duplicated withholding issue when available.

[gparob]

Let us not forget that for all intents and purposes I have correctly completed my tax return.  The issue most concerning to me at this point is being unable to submit my taxes electronically.  This is due to the edit program that rejects withholding numbers that are not WTH.  We have both agreed that WMP is a valid withholding type this is affecting both my FEDERAL and STATE tax returns.

Intuit guarantees the function of the software to enable correct calculation and submission of my taxes.  The submission deadline is quickly approaching.  

When would it be reasonable to assume that I can submit my taxes?

[MonikaK1]

As per my original reply:

The Utah instructions for entering state withholding for a Form 1099 state that the last three characters of the payer's state ID number need to be "WTH". The Utah instructions for entering state withholding for a Utah Form TC-675R state that the last three characters of the payer's state ID number need to be "WMP". 

It is the reporting form used that determines which letters to enter for the last three characters. Utah uses "WTH" for Forms W-2 and 1099, and "WMP for Form TC-675R.

Therefore, you should enter Form 1099 with "WTH" as the last three characters. This should allow you to e-file. We will follow up here with a status update on the duplicated withholding issue when available.

[akpaulus91]

I also cannot e-file because my 1099-MISC has letters STC at the end of the payer's state no.  Monika, are you saying here that we can enter WFH even though the form has different letters at the end of the value in box 17? 

[MonikaK1]

See this Utah state webpage for instructions for completing their mandatory state withholding form.

To claim credit for Utah withholding tax, complete TC-40W, page 1. Enter the following information:
Line 1 – Enter the employer/payer federal EIN (W-2 box “b,” or 1099).
Line 2 – Enter the employer/payer Utah withholding account number (W-2 box 15, or 1099).

For W-2's: The Utah withholding account number is a 14-character number. The first eleven characters are numeric and the last three are “WTH.” Do not enter hyphens. Example: 12345678901WTH.

For 1099's for Mineral Production and Pass-through Withholding: The Utah withholding account number is a 14-character number, 11 numeric and the last three are "WMP".

If form W-2 or 1099 does not include this number, contact the employer or payer to get the correct number to enter on TC-40W, Part 1. Failure to include this number on TC-40W may cause your withholding to be disallowed and delay any refund.

The letters STC are apparently used for Sales and Use Tax. See this TurboTax article for information on claiming sales taxes. 

Contact the payer with any questions as to why a particular code was used on their 1099. Failure to include the correct number on TC-40W may cause your Utah state withholding to be disallowed and delay any refund