The Changing Nature of State Reporting for 1099-NEC/MISC

This ebook compiles the basics of state reporting requirements for 1099-NEC and 1099-MISC, including the following:

• A breakdown of the CF/SF program requirements versus the DSR requirements
  · Which states participate in each?
  · What are the potential downsides for each program?
  · If a state participates in one, does that mean they cannot participate in the other?
• Discussion on recent changes to reporting requirements and what it may mean for certain states
  · How many states require 1099-NEC be filed to them directly?
  · Which states have issued guidance on the reporting requirements?
• An explanation of common state filing issues
  · What are they and how can you avoid them?
  · Are all states facing the same issues?
• Background on state backup withholding, including state-specific examples
  · What is the range of withholding rates?
  · Is it applied at the state or federal level?

The digitization of tax compliance and reporting is unavoidable. Additionally, businesses face increased filing complexity and lowered thresholds for e-filing. Small- to medium-sized organizations are especially seeing great challenges in meeting all 1099 form requirements. It’s important to understand that homegrown solutions or manual efforts cannot continue to keep pace with the changes.

The issuing and filing of 1099-NEC and 1099-MISC forms is an essential part of tax reporting. When you have a better understanding of the types of required reporting, why it is required and how those details impact your company, you can better achieve and maintain state reporting compliance.