© 2020 American Payroll Institute, Inc. State Requirements for Filing Form 1099-MISC and New Form 1099-NEC By: Jim Medlock, CPP, Payroll Compliance Educator at Medlock & Associates Ereporting ffective for tax year 2020, the IRS has moved the of nonemployee compensation (NEC) from Form 1099-MISC, Miscellaneous Income, Box 7, to Form 1099-NEC, Nonemployee Compensation, Box 1. Prior to tax year 2020, NEC could be reported to state tax agencies by filing Form 1099-MISC. IRS file format Form 1099-MISC is filed using the IRS’s Filing Information Returns Electronically (FIRE) system using the FIRE system’s Combined Federal/State Filing (CF/SF) Program. For tax year 2020, Form 1099-NEC is not part of the CF/SF Program. This means that the IRS will not share the Forms 1099-NEC filed by organizations enrolled in the CF/SF Program with the 30 states participating in the CF/SF program. When filing Forms 1099-NEC using the FIRE System, the file must be in the format defined in IRS Publication 1220. Many states require the filing of Form 1099-NEC using this file format. Based on letters received by APA’s Government Relations Task Force’s State and Local Topics Subcommittee, the following table was developed providing information for each state’s requirements for filing Form 1099-NEC electronically or magnetically. Note: Where information for Form 1099-NEC is not yet known or finalized, the reporting information provided is for Form 1099-MISC (or Forms 1099 generally). States with filing due dates of January 31, 2021, will accept filing on February 1, 2021, as timely because January 31 is a Sunday. States with filing due dates of February 28, 2021, will accept filing on March 1, 2021, as timely because February 28 is a Sunday. The following states do not have an income tax and were not included in the chart: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. State Due Date Electronic/Magnetic Media Filing Required File Format Additional Information AL 1/31 AL tax withholding, 3/15 with no AL withholding Yes, if at least 25 Forms 1099 (electronic filing only) IRS format AL anticipates that it will accept Form 1099-NEC AZ 1/31 Electronic filing required IRS format AZ has not yet determined if Form 1099-NEC will be required AR 1/31 Yes, if at least 250 Forms 1099 CD, DVD, or USB flash drive accepted IRS format Report NEC on Box 1 of Form 1099-NEC, but use code 07 CA 1/31 Yes, if at least 250 Forms 1099 (electronic filing only) IRS format CA has not yet determined if Form 1099-NEC will be required CO 1/31 (will accept Form 1099-NEC beginning 1-5-21) Yes, if at least 250 Forms 1099 electronic filing via Revenue Online IRS format CO Form DR 1106 filed when CO withholding reported on federal Forms 1099 CT 1/31 Yes, if at least 25 Forms 1099 (electronic filing only) Dynamic Web Import (does not use IRS formatted file) or Bulk Filer format (uses IRS format) CT plans to accept Forms 1099-NEC electronically and on paper paper forms with Form CT-1096 DE 1/31 Yes, if at least 250 Forms 1099 (electronic filing only) IRS format Form 1099-NEC reporting required where forms issued to DE residents (regardless of where services were performed) or to nonresidents for work performed within DE DC 1/31 Yes, if at least 25 Forms 1099 (electronic filing only) IRS format Positions 747-748 will be blank for 1099-NEC submissions December 14, 2020 Volume 22 Issue 24
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