The Combined Federal State Filing Program (CF/SF) was developed to facilitate the reporting of individual income to the states utilizing the forms submitted to the IRS.
This has worked exceedingly well for the 1099 series of forms. By just checking a box in our program the information was automatically forwarded to the states that
participated in the program. Not all states require the forms since they have no state income tax. You should always confirm all Federal and States compliance issues
with your tax professional, CPA or tax attorney.
With the addition of the 1099 NEC form the IRS has attempted to resolve some issues with reporting deadlines but has created many more by not including the NEC form in the CF/SF, AND may not be able to include it until 2022! This has taken everyone by surprise and we have been working diligently to find a solution for our customers.
Many states, 33 currently, require payers to file the 1099 NEC directly to the states. When uploading 1099 NEC file(s) we will be able to process your file(s) and determine which forms to send to the states based on our research and give you a price immediately - please see the pricing list below.
Currently we are aware that 33 states require direct report of the 1099 NEC forms. Please see the list below. This is subject to change due to this being an evolving situation.
We will accept records from the 33 states under the following conditions:
1) The state identified in the recipient address is on the list of 33 states.
2) There is no withholding in box 5.*
3) If required, the state ID is present and in the correct format in Box 6.
4) If required, the state income is present and in box 7.
5) If there is a reconciliation required (GA, NE, WV and VA), permission will have to be given via a pop-up message to complete the reconciliation as all zeros.
* - If a person has withholding, you are responsible for filing that information to the states.
If any of the above conditions are not met the process will be cancelled and a list of errors displayed.
Replacements for Rejected filings (we will notify you by email) should be done in a separate copy of the original 1099Express Source file and a new CSV file should be generated and uploaded thru the website. To correct a filed individual, you must contact the state and find out how they want you to do the correction.
Open up the 2020 program. Click on 'Options' -> 'Set Direct State Filing'.
Select the 'Create DataFile to Send 1099-NEC to ALL STATES' -> 'Create CSV'. Using the file selection, find and add all files to the list that you want to send for direct state filing and click 'OK'
A message saying your CSV file was generated will appear. You can find the file on your 'C' drive 'E2020\MyFiles'.
|Number of Forms||Price per Form|
|1 to 50||$ 1.81|
|51 to 100||$ 1.33|
|101 to 250||$ 1.10|
|251 to 500||$ 1.00|
|501 to 1,000||$ 0.90|
|Over 1,000||$ 0.85|
* - If requested, we can work to process and build the csv file and submit it to the states. There is an $85 labor fee for this service that will be added to the cost of eFiling.
The following states can be e-filed thru this process. This list is still being researched and updated as new data becomes available.
|Rhode Island (Paper Only)||RI★|
State/Tax Id is required for filing with the states as indicated below:
★ - State/Tax Id is required for filing to states even if there is no withholding.
☆ - State/Tax Id is required if withholding is present. State/Tax Id is not required if withholding is not present.
✪ - Wisconsin State/Tax Id is required if the given company has a State/Tax Id for Wisconsin associated with it. Leaving State/Tax Id blank will result in the Wisconsin's default Id (036888888888801) being inserted.
If the box holding a state is colored Orange, as of 1/21/2021, we have removed the state from our filing list. The state has indicated that they only want forms that have withholding. We do not file any state withholding (Information for this change was received from SOVOS).
1/22/2021 - Rhode Island has been removed from our filing list due to a reconciliation that we can not perform.
2/22/2021 - Added additional information on filing to Wisconsin.