Maine Released 2021 Electronic Specifications for Forms 1099 and W-2G

Paul Ogawa
December 6, 2021

Maine recently released 2021 Electronic Specifications for Forms 1099 and W-2G. The most notable changes include:
• Added sections: Due Date (pg. 3) and Forms Required (pg. 4).
• Penalty: Any person who is required to file an information return in accordance with 36 M.R.S. §5242 and who fails to do so on or after January 31, 2022, or who willfully furnishes a false or fraudulent return of information, is subject to a penalty of $50 for each such failure. Generally, returns of information include Forms W-2, Forms 1099, and other similar forms containing tax information necessary for filing Maine income tax returns.
• Deadline: The deadline for 2021 1099 and W-2G forms is January 31, 2022. Last year the forms were due on February 1, 2021.
• Payers required to submit forms 1099 and W-2G.
o Previously:
 Payer required to file with the IRS 250 or more of any one of the 1099 forms (other than 1099G) must electronically file those 1099 Forms that include Maine withholding direction with MRS.
 A payer who files less than 250 1099 forms with the IRS but who did not report payee withholding information as required with Form 941ME must electronically file those 1099 Forms that include Maine withholding directly with MRS.
 Only 1099 Forms that include Maine withholding are required to be included in the file, 1099 Forms with no withholding will be ignored.
o Now:
 A payer required to file electronically with the IRS any type of 1099, including 1099-G, must report form to MRS for Maine residents and recipients of payments sourced to Maine.
 Any payer who withheld Maine income tax from any payee and did not report it on Form 941-ME must report annual payee statement information with MRS for all payees who are Maine residents or who receive Maine source income.
• T Record Changes:
o Column 29 – Foreign Entity Indicator. Enter 1 if transmitter is foreign entity. Previously, blank.
• A Record Changes:
o Column 28-45. Previously Column 28-43.
o Column 46-51. Previously Column 44-51.
• B Record changes:
o Column 247-258 added for ‘Payment Amount H’. Previously, Column 247 used for ‘Foreign Country Indicator’.
o Column 259-270 added for ‘Payment Amount J’.
o Column 271-286 added, but to be left blank.
o Column 287 added for ‘Foreign Country Indicator’, which was previously located at Column 247.
o Column 288-327 added for ‘First Payee Name Line’.

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Author

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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