State 1099 and W-2 Form Mandates
1099 Reporting Software and Outsourcing Solutions
The IRS developed the
Combined Federal/State Filing (CF/SF)
program almost 20 years ago giving clients
the opportunity to submit one file to the IRS which can also be forwarded to whatever participating state(s)
the client selects. States participate and withdraw from the CF/SF every year and the list of participating
states remains about 30 states in total.
Many states now require you to upload data to their Department of Revenue even if that state belongs to the CF/SF
program and you electronically filed or plan to transmit data through the CF/SF program to that participating state.
Outsourcing...
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Alabama (Form 1099-K)
The Wholesale to Retail Accountability Program, or WRAP, was enacted during the 2017
regular session of the Alabama Legislature. This legislation requires payors to file
duplicate federal form 1099-K information returns with the Alabama Department of Revenue or
a duplicate of all information returns related to taxpayers or participating payees with an
Alabama address.
Alabama is a member of the Combined Federal/State program. Regardless, if you efiled or plan to data
through the CF/SF program, you have to file a copy of the 1099-K information returns electronically through
https://myalabamataxes.alabama.gov as well. We have a MAT logon and can file efile on your behalf.
Illinois (Form 1099-K)
Illinois participated in the CF/SF for years. You could upload one file to the IRS and select Illinois
to also receive that data. Then Illinois withdrew from CF/SF and developed their own website, their own
system for uploading and receiving data and their own mandates.
In tax year 2019, Illinois issued
bulletin 2020-14
which requires Form 1099-K issued to a payee with an Illinois address to be filed
through the
Illinois FIRE Electronic Transmission program
. The due date is March 31.
The file that you transmit to Illinois is similiar but not identical to the IRS file.
Also, you must transmit your data to Illinois E-services website using HTTPS protocol and POST method.
Illinois provides this free uploading and download tool:
You upload. Wait. Then download the results and the first line of the file will let you know if
the file was accepted or rejected.
Quirks exist with this Illinois FIRE System! If a recipient name is 40 characters or less or more than 42
characters in length, all is well. If the recipient name is exactly 41 characters, then the first 40 characters
are considered to be the recipient name and 1 character is the "continuation of recipient name". And a recipient
name or continuation of name can not be 1 character in length and will be rejected. Therefore, any recipient name that is 41
characters exactly is rejected by the Illinois FIRE System. I spoke with a representative from the Illinois Department of Revenue
in June of 2020 and they said they are not modifying their
system so our software has been modified to warn users of a recipient name that is exactly 41 characters in length.
Florida (Form 1099-K)
Florida requires every payment settlement entity, their electronic payment facilitators,
or contracted third parties to file an annual 1099-K (Merchant Card and Third-Party Payments Information Report)
with the Department of Revenue. All returns must be filed electronically using the Florida Department of
Revenue website. Florida is not a member of the Combined Federal/State Filing program.
Wisconsin (Forms 1099-MISC, 1099-R, W-2)
The state of Wisconsin still participates in the CF/SF program. Wisconsin says:
Persons who participate in the Combined Federal/State Filing Program are not required to file Forms 1099 with the Wisconsin Department of Revenue. The department receives this information from the IRS. Exception – Any Form 1099 reporting Wisconsin withholding, must be filed with the department by January 31.
If the recipient is from Wisconsin and you withheld, then you skip filing through the CF/SF program
and upload directly to the Wisconsin DOR using this link:
https://www.revenue.wi.gov/Pages/OnlineServices/w-2.aspx
It is the same file you would transmit to the IRS with one revision, you have to add the state code.
Form W-2 can also be transmitted to the Wisconsin DOR.
Related...
1099 Illinois FIRE mandate, 1099 IL FIRE mandate, Illinois FIRE mandate, Wisconsin withholding mandate,
Wisconsin 1099 withholding, WI 1099 withholding mandate, Alabama WRAP, Alabama Form 1099-K
