1. Who must file Form 1099 Reports?
Any individuals or institutions who issue Forms 1099-INT, 1099-Div, 1099-MISC or any other forms in the 1099 series (each type referred to generically as a "1099 form") are required to file with the Commissioner an annual report of interest, dividends and other income taxable under G.L. c. 62. The income must be reported on the same basis as is required by the federal government under the Internal Revenue Code.
2. How Do I Submit 1099 Reports to DOR?
For tax year 2009 and subsequent tax years, 1099 reports must be filed in "machine-readable form," which includes file uploads through MassTaxConnect and electronic data transfer (SSH) for files greater than 2MB. The machine-readable threshold for 1099 forms has been changed to 50 or more and is consistent with a similar threshold as that for Massachusetts W-2 reporting requirements.
If you are submitting less than 50 1099 reports, you are still encouraged to submit these electronically. However if you are submitting in a hard-copy paper format, the mailing address is: Massachusetts Department of Revenue, PO Box 7045, Boston, MA, 02204.
If submitting 1099 reports in a paper format, be sure to include with the state copies a photocopy of the US Form 1096, Annual Summary and Transmittal of US Information Returns.
NOTE: Form MA 1099-HC, Individual Mandate Massachusetts Health Care Coverage, must be filed electronically, without regard to the number of reports/returns. Click here for information on how to file Form MA 1099-HC electronically.
3. Is there some form of registration process to file Form 1099 Reports in Massachusetts?
If you are submitting a 1099 file, whether via MassTaxConnect upload or electronic data transfer (SSH), you must be registered for MassTaxConnect.
4. Can I submit 1099 Reports Using Magnetic Media?
The Commissioner has the authority to require annual reports from entities doing business in the state in such form as she may from time to time prescribe per G.L. c. 62C, § 8. 1099 reports will no longer be accepted via magnetic media methods, as this technology is no longer supported by most IT vendors.
5. When Are 1099 Reports Due?
Persons filing 1099 reports must submit such forms on or before the last day of February following the close of the calendar year.
6. How do I request an extension to file?
Extension requests must be made in writing or faxed to 617-887-5525, accompanied by the Federal Form 8809 by February 28.
7. Does Massachusetts provide its own Form 1099 specifications?
No. Massachusetts accepts the Form 1099 specifications found in IRS Publication 1220 with certain modifications explained below. Generally, Form 1099 information, including dollar thresholds and corrected returns, follow federal guidelines.
8. What modifications to the Form 1099 specifications in IRS Publication 1220 are to be made for Massachusetts?
There are modifications to be made for municipal bond interest as explained below.
For Interest from BONDS:
Use the 1099-INT format to record earnings on each state or local bond. Report the income as if it were taxable for federal purposes. Note: A return is due for each bond on which interest is paid.
Report payment amounts in positions 67-78 of the payee "B" record. Right-justify and zero-fill.
For Interest from MUTUAL FUNDS:
Use the 1099-INT format to record earnings from mutual funds, money market funds, and unit investment trusts. Report the income as if it were taxable for federal purposes.
Use positions 44-46 of the "A" record to report the percentage of mutual fund portfolio income distribution attributable to bonds issued by Massachusetts, Puerto Rico, Guam and the Virgin Islands, rounded to the nearest whole number - e.g. 25.4% would be reported as 025 and 25.5% would be reported as 026. Report payment amounts in positions 67-78 of the payee "B" record. Right-justify and zero-fill.
9. Does Massachusetts participate in the Federal-State Combined Filing Program?
Yes. However Massachusetts still requires 1099s be filed directly to DOR per the instructions above, regardless of the Combined Filing Program.