Finding Text
2022-002: Form 1099-MISC was not issued to certain dairy farmer recipients U.S. Department of Agriculture; Agricultural Marketing Service Pandemic Market Volatility Assistance and Education Program (ALN 10.183) Federal Award Year: 2021-2022 Finding: The Organization did not issue a Form 1099-MISC to those dairy farmer recipients who did not provide the Organization with the necessary information to complete and issue the form by the Internal Revenue Service (IRS) deadline date, January 31, 2023. Criteria: Pursuant to the PMVAP agreement with the Agricultural Marketing Service of the USDA, the Organization is required to issue a Form 1099-MISC to each dairy farmer who received a PMVAP payment by the IRS deadline date. Condition: The Organization did not issue a Form 1099-MISC to those dairy farmer recipients who did not provide the Organization with the necessary information required to complete the form by January 31, 2023. Cause: Certain dairy farmer recipients did not provide the necessary information required in order for the Organization to issue a Form 1099-MISC. Effect: The Organization did not issue a Form 1099-MISC to certain dairy farmer recipients by January 31, 2023. Questioned costs: None. Context: One of the 60 dairy farmer recipients subjected to testing did not receive a Form 1099-MISC due to the recipient not providing the necessary information to the Organization by January 31, 2023. Recommendation: We recommend the Organization continues to work with the dairy farmer recipients to track down the necessary information in order to issue the Form 1099-MISC. View of responsible officials: Management agrees with this finding.