North Carolina recently released an important notice with information regarding various updates to North Carolina’s withholding tax for information returns due in 2021. The document primarily discusses the state requirements for filing federal Form 1099-NEC with the state along with North Carolina Form NC-1099M, and the extension of the waiver of the administrative requirement to file federal Form 1099-MISC if the statement did not report North Carolina income tax withheld. The most notable details of the notice are detailed below.
Effective for information returns due to be filed on or before January 31, 2021, North Carolina will require paper or electronic filing of any federal Form 1099-NEC statement that reports North Carolina income tax withheld.
The waiver of the administrative requirement to file federal Form 1099-MISC if the 1099-MISC statement does not report North Carolina income tax withheld will be continued by the Secretary until further notice.
To view the complete notice, click here.