California to Require 1099-NEC Reporting Beginning with Tax Year 2020

Paul Ogawa
February 1, 2021

The California Franchise Tax Board (“FTB”) recently published its January 2021 issue of the Tax News bulletin which outlines certain tax and regulatory updates. In this bulletin the FTB announced a new filing requirement for Form 1099-NEC beginning in tax year 2020. Payers are required to report nonemployee compensation payments on Form 1099-NEC to the California FTB if the recipient is a California resident or part-year resident, or if the source of the 1099 transaction was in California. Form 1099-NEC must be filed with the FTB directly even if it is filed with the IRS and is due to the state by March 31, 2021 for electronic submissions and February 28, 2021 for paper submissions.

To review the FTB Tax News bulletin, click here. To see the general 1099 filing requirements for California, click here.

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Paul Ogawa

Paul Ogawa is a Senior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.
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