1099 Pro v2022.13.01

IMPORTANT

• 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.