KPMG report: Certain states currently accepting Form 1099-NEC under CF/SF program

An updated version of Publication 1220 issued by the IRS includes Form 1099-NEC into the “Combined Federal State Filing” (CF/SF) program

Certain states currently accepting Form 1099-NEC under CF/SF program

The updated version of Publication 1220 issued by the IRS in the fall of 2021 included a noteworthy change—the inclusion of Form 1099-NEC into the “Combined Federal State Filing” (CF/SF) program.

Form 1099-NEC was reintroduced for the 2020 tax year but was not originally included in the CF/SF program, leaving state agencies and taxpayers scrambling to get their processes updated ahead of the filing deadlines.

With the recent inclusion of Form 1099-NEC in the CF/SF program for the 2021 tax year, some states recently updated their guidance to note that they will accept the form when submitted through the CF/SF program. However, not all state agencies have caught up with the update. 

Read a January 2022 report [PDF 242 KB] prepared by KPMG LLP that includes a table listing states that currently accept Form 1099-NEC when there is no withholding to report.

 

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