NOTE: SOFTWARE MUST BE AT LEAST ON v2022.08.21 TO APPLY THIS UPDATE.
- The 1099 Pro Service Bureau will include the 1099-NEC as part of the Combined Federal State Filing Program (CF/SF). To complete 1099-NEC state filing for the 20+ states that require the 1099-NEC to be filed directly, you must select the "1099-NEC State Direct" service (details here).
Many states, that implemented their own 1099-NEC filing mandates, are still requiring state direct filing as opposed to allowing filers to use the IRS CF/SF Program. This is because most states have already built their reporting portals and direct reporting provides the data to states earlier in the year which is a critical tool in combating tax fraud.
- 1099-K threshold
- In late December 2022 the IRS released guidance that the implementation of the reduced $600 threshold for 1099-K reporting will be delayed until tax year 2023. As a result, the federal threshold for the 1099-K reporting for tax year 2022 will remain unchanged at $20,000 and 200 transactions.
- State Electronic Filing is now enabled for all forms (Enterprise Only).
- Service Bureau is now enabled for State Direct filing uploads.
- Service Bureau:
- Replacement process option is now available. (22)