By Patrick Trask, CPA, MST
With 1099 filing season under way, please be advised that Massachusetts requires filing of all Form(s) 1099 in addition to the normal Federal filing.
Any individuals or businesses that issue any forms in the 1099 series (1099-MISC, etc.) are required to file an annual report of interest, dividends and other taxable income. The income must be recorded on the same basis as required by the federal government under the Internal Revenue Code. Although Massachusetts participates in the federal-state combined filing program, you are still required to submit forms 1099 to the Massachusetts DOR.
1099 reports must be filed in "machine-readable form" if you file 50 or more of a particular 1099 form. A "machine-readable form" includes electronic data transfer and file uploads through Webfile for Business. Form MA 1099-HC must be filed electronically regardless of the number of reports you are filing. Massachusetts is no longer accepting 1099 reports via magnetic media methods.
Paper filers are required to use Federal Form 1096 as a cover sheet. Paper reports should be mailed to:
Massachusetts Department of Revenue
Form 1099 Reporting
P.O. Box 7045
Boston, MA 02204
The 1099 reports are due on or before the last day of February following the close of the calendar year. Extension requests must be made in writing (or faxed to 617-887-5929), be accompanied by Federal Form 8809 and submitted by February 28th. Massachusetts generally accepts the Form 1099 specifications set forth by the IRS. However, Massachusetts does use different specifications for 1099 reports on interest from bonds and mutual funds. Further information may be obtained at http://www.mass.gov/dor/businesses/filing-and-reporting/form-1099-reporting.html
Failure to properly comply with the Massachusetts filing requirements for 1099 reports may result in penalties and interest. If you have any questions, please contact a DGC representative at 781-937-5300.
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