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, 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 instead of 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 stay at $20,000 and 200 transactions.