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DISCLAIMER:  1099 PRO IS NOT LEGALLY PERMITTED, OR QUALIFIED, TO PROVIDE TAX ADVICE.  ANY INFORMATION INCLUDED BELOW A) COULD BE INCORRECT, B) COULD BE OUT OF DATE, C) IS SUBJECT TO CHANGE, D) SHOULD BE USED FOR RESEARCH PURPOSES ONLY, AND E) SHOULD BE CONSIDERED CONFIDENTIAL TO 1099 PRO CUSTOMERS ONLY.  1099 PRO SUPPORT PERSONNEL CANNOT PROVIDE ANY FURTHER INFORMATION ON THE SUBJECT.

The 1099 Pro Service Bureau will not include the 1099-NEC as part of the Combined Federal State Filing Program (CF/SF).  In order to perform 1099-NEC state filing, via the Service Bureau, customers must purchase the additional 1099-NEC state filing service (described below).

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.

IMPORTANT NOTES (TAX YEAR 2021):

  • Service Bureau, State Reporting Add-On
    • The 1099 Pro Service Bureau provides an add-on option where the Service Bureau can perform state direct reporting on your behalf.  Reporting consists of:
      • 1099-NEC Originals for Tax Year 2021.
      • Corrections, or other form types, are not supported.
    • The add-on option is all or nothing (per each upload).  1099 Pro cannot pick & choose individual states.
      • Reporting will be provided only for supported states, as listed in the "Supported by 1099 Pro Service Bureau" column in the chart at the bottom of this page, and per the states' reporting thresholds:
        • Y = Supported
        • Y - Only If No Withholding = Supported only for records that do not have state tax withheld.
        • Y - Customer Must Submit Reconciliation Form Separately = Supported.  However, the customer is responsible for the extra action of submitting the state reconciliation form directly to the state.

          • NOTE:  Reconciliation Forms are submitted to the states directly NOT to 1099 Pro.

            StatusStatesCount
            Fully Supported - AR, CA, ID, KY, MA, MI, MD, MN, MO, MS, ND, OH OK, OR, SC15
            Supported, Requires Customer to Submit Reconciliation Form -AZ, CO, DC, DE, GA, NC, NE, NJ, UT, VA, VT, WI12
            Supported, As Long as No Withholding -AL, CT, KS, MT4
            Not Supported - AS, GU, HI, IA, IN, LA, MP, NM, PA, PR, RI, VI, WV13
            Reporting Not Required - AK, FL, IL, ME, NH, NV, NY, SD, TN, TX, WA, WY12
  • What To Do if the State is Not Supported by the Service Bureau
    • First, check to see if you have any tax records for the unsupported states AND whether or not those records exceed the reporting threshold for those states.  If you don't, then you do not have a reporting requirement in those states!
    • If you do have tax records that are in unsupported states and that exceed the state reporting thresholds then consider purchasing, or upgrading to, the 1099 Pro Enterprise Software, or Corporate Suite software. 
      • The 1099 Pro Enterprise Software, and Corporate Suite software, both provide the ability to create your own state files (paper or electronic) that you can then submit directly to the state, per the requirements.
        • This is the available option for reporting to:
          • States that are not supported by the Service Bureau
          • States that you perform withholding in but are labeled "Y - Only if no withholding"
        • 1099 Pro recommends the 1099 Pro Enterprise software for any customer with less than 20,000 records.
        • The Enterprise software will require a separate installation and setup.  The 1099 Pro Professional software can be updated directly to the 1099 Pro Enterprise Software without losing data.
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