Corrections to '09 DCP/ACRE Direct CCC-1099G Reporting Notice Issued

UNITED STATES DEPARTMENT OF AGRICULTURE

Farm Service Agency
Washington, DC 20250
For: State and County Offices

Corrections to 2009 DCP and ACRE Direct CCC-1099G Reporting
Approved by: Associate Administrator for Operations and Management

1 Overview

A Background

The 2009 advance direct payments were issued without applying all the provisions of the Food, Conservation, and Energy Act of 2008, and related regulations. Notice DCP-222 advised that all previously issued 2009 advance direct payments would be processed as overpayments on System 36, and be offset from the 2009 final direct payments. Normal CCC-1099G processing does not reduce the income reported by the amount of an overpayment or refund.

Note: Similar actions will be taken for the 2009 NAP payments that were issued using Online Payments before the NAP web application was available.

LIP and LFP non-automated payments will appear correctly on 2009 CCC-1099G’s. A similar process will be developed to avoid duplicate reporting of LIP and LFP payments when the automated software is available, which may not be until 2010.

B Purpose

This notice informs State and County Offices of:
· actions that are being taken to provide correct CCC-1099G reporting for 2009 DCP and

ACRE direct
· how the information will be displayed on the Financial Inquiries web site.

Disposal Date
April 1, 2010

Distribution
State Offices; State Offices relay to County Offices

Notice FI-2931
Notice FI-2931

C Contact

State Offices with questions about this notice should contact either of the following:
· Jackie Pickens, FMD, by:
· e-mail at Jackie.Pickens@wdc.usda.gov
· telephone at 703-305-1310
· Debra Deane, FMD, by:
· e-mail at Debra.Deane@kcc.usda.gov
· telephone at 816-926-5988.

2 Displaying and Reporting 2009 DCP Advance and Final Payments

A CCC-1099G Reporting

FSC has taken action to ensure that CCC-1099G reporting to producers and the IRS will be accurate for the 2009 DCP and ACRE. DCP advance direct payments will be removed from the Producer Payment Reporting System (PPRS), which is the source of CCC-1099G information.

The 2009 DCP or ACRE final direct payments certified and signed in NPS after October 9, 2009, will reflect the producer’s total 2009 DCP or ACRE direct entitlement, and will be processed into PPRS.

In addition, FSC will monitor 2009 DCP and ACRE final direct payments and initiate corrective actions for any unusual situations to ensure that year-end reporting is accurate.

B Financial Inquiries

The Financial Inquires web site serves as a useful tool to view a producer’s FSA financial activity. All State and County Office employees with a valid e-Authentication ID and password have access to Financial Inquiries. Customers with a level 2 e-Authentication ID may log into the Financial Inquires web site to view the details of their financial activity.

For the 2009 DCP or ACRE, only the final DCP or ACRE entitlement amount will be displayed in the CCC-1099G/Refund Reports inquiry type of Financial Inquires. Refund amounts associated with the DCP overpayment process will be suppressed and not displayed when either of the inquiry types is selected.

Inquiries by Payments, Collections, Debts, and Customer Account types in Financial Inquiries will display all activity generated by the DCP advance payments and DCP or ACRE direct final payments.

Note: Instructions for using Financial Inquires are found in 1-FI, Part 6.5.