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.