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What state(s) are 1099s filed in?

Are 1099s filed in the state of incorporation (where required per or the recipients's state?


Topic Expert
Malak Kazan
Title: VP, Special Projects
Company: ERI Economic Research Institute
(VP, Special Projects, ERI Economic Research Institute) |

In addition to the filing with IRS, the 1099-MISC must be filed with the relevant state tax agency based on where the 1099-MISC recipient lives, not where your business is located. Also keep in mind some municipalities have income taxes in addition to federal and state taxes. The 1099-MISC must be filed with them as well. For example, if the company is based in Las Vegas (which has no state or local income tax) but have a contractor in Philadelphia,1099-MISC information to the Pennsylvania Department of Revenue and the City of Philadelphia as well as the IRS should be filed. Hope this helps.

(Controller) |

Two different tax advisors (both from respected regional firms) indicate that the state 1099s are filed in the state that that business is located. This seems to conflict with the advise from Malak (and separate advice from my former accounting manager). I'm not 100% certain who to believe, but will go with our tax advisors for now.

(Agent) |

DISCLAIMER: This answer is for discussion purposes only and anyone seeking tax advice should contact a qualified tax professional. Using advice obtained on discussion board sites is not adequate for purposes of obtaining qualified tax advice and can result in damage to you as a result of not seeking qualified professional advice.

Here is the IRS link to the PDF form where you can see the State boxes

Here are the 1099 instructions and I have cut out the instructions for the state boxes 16-18.

Boxes 16–18. State Information
These boxes, and Copies 1 and 2, are provided for your
convenience only and need not be completed for the IRS.
Use the state information boxes to report payments for up
to two states. Keep the information for each state
separated by the dash line. If you withheld state income
tax on this payment, you may enter it in box 16. In box 17,
enter the abbreviated name of the state and the payer's
state identification number. The state number is the
payer's identification number assigned by the individual
state. In box 18, you may enter the amount of the state
payment. Use Copy 1 to provide information to the state
tax department. Give Copy 2 to the recipient for use in
filing the recipient's state income tax return.

(Controller) |

Here's what our tax advisors (large regional firm) said with respect to filing 1099-DIV with states (...there were no state tax withholdings)..."When we file the forms to the IRS, the information will be forwarded to the states." Thus, it appears that one only needs to file with the IRS (at least in cases of no state withholdings and 1099-DIV). I wonder if this answer is correct -or- something done in practice despite the formal requirements.


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