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 2016 and subsequent tax years, 1099 reports must be submitted electronically and follow new transmission protocols that replace outdated magnetic media reporting requirements. Magnetic media such as reel tapes, track cartridges and/or CD-ROM are not permitted. Data transfers, data entry and file upload options are offered through MassTaxConnect, the Massachusetts Department of Revenue’s (DOR) state-of-the-art, electronic system for filing and paying taxes in the Commonwealth.
Transmitters and/or Third Party Agents with files greater than 2MB must bulk file using Secure File Transfer Protocols (SSH). Contact DOR, Operations Support Unit at 617-887-5030 for additional details and procedures for bulk filing 1099 Reports.
NOTE: Form MA 1099-HC, Individual Mandate Massachusetts Health Care Coverage, must be filed electronically, without regard to the number of reports/returns. For more information on how to file Form MA 1099-HC electronically, please contact DOR, Operations Support Unit at 617-887-5030.
3. Is there a registration process to file Form 1099 Reports in Massachusetts?
Transmitters who are required to file 1099 Reports with DOR must have an active login and password to MassTaxConnect. If you need assistance with accessing MassTaxConnect, please contact DOR’s Contact Center for assistance at 617-887-6367.
4. How do I request an extension of time to file information returns, 1099 Reports?
Requests for extension of time to file information return, 1099 Reports must be made in writing accompanied by both the Federal Form 8809 and the IRS letter of approval on or before January 31. You may email your request for an extension of time along with attachments directly to DOR’s, Operation Support Unit: email@example.com or fax requests directly to 617-660-8946.
5. Does Massachusetts provide its own Form 1099 specifications?
DOR does not publish specifications for 1099 Reports. DOR accepts 1099 Reports and files created using specifications published in IRS Publication 1220 with certain modifications explained below.
Generally, Form 1099 Reports, including dollar thresholds and corrected returns, follow federal guidelines outlines in the IRS Publication 1220.
NOTE: Form MA 1099-HC, Individual Mandated Massachusetts Health Care Coverage, must be filed electronically, without regard to the number of reports/returns. For more information on how to file Form MA 1099-HC electronically please contact DOR's Operations Support Unit at 617-887-5030.
6. 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.
7. Does Massachusetts contribute to the Combined Federal/State Filing (CF/SF) Program?
However, automatic participation is not granted unless transmitters provide notification of participation along with a copy of the IRS letter of approval letter. Please submit written notification via email and attach IRS letter of approval to: firstname.lastname@example.org or fax directly to MDOR’s, Operation Support Unit at 617-660-8946.
For detailed information on the Combined Federal/State Filing program, refer to IRS Publication 1220 or contact IRS/IRB customer service at 1-866-455-7438, Monday through Friday, 8:30AM to 4:30PM EST
IMPORTANT TO NOTE FOR MASSACHUSETTS FILERS: Regardless of participation status within the IRS Combined Federal/State Filing Program (CF/SF) Massachusetts Department of Revenue requires individuals or institutions who issue Forms 1099-INT, 1099-Div, 1099-MISC to transmit directly to the MDOR, in addition to the IRS Combined Federal/State Filing program (CF/SF).
8. When Are 1099 Reports Due?
NEW for TY2016 Informational Form 1099 Reports have changed. The new January 31 deadline applies to certain types of 1099 Reports. If filing Form 1099-Misc and reporting amounts in Box 7: Nonemployee Compensation, the new filing deadline of January 31 applies. If you don't have amounts in Box 7, then the deadline remains March 31 for electronic filings.
Background on Due Dates
In an effort to combat fraud, The Protecting Americans from Tax Hikes (PATH) Act of 2015, was passed by Congress and signed by President Obama in December. The act revises the filing deadline for Form W-2 and certain types of Form 1099.