With the release of Publication 1220 for tax year 2021, we were made aware that the IRS has added Form 1099 NEC to the Combined Federal State Filing (CF/SF) program. It will be up to the state agencies whether or not to make a change to participate in CF/SF and not continue to require direct reporting. A number of states are beginning to release guidance on direct reporting of the 1099-NEC and we anticipate there will be many more to come.
Our team of tax and regulatory experts are closely tracking regulatory changes on the federal and state level including any new direct to state reporting requirements for the 1099-NEC. Sign up now to receive regular email updates on blogs published by Sovos to keep you ahead of this rapidly evolving tax year 2021 reporting issue.