Real Business Solutions

1099 payers can use our 1099 software to meet the state 1099 filing requirements either on paper or through electronic filing. You can read more about this software and download a free 1099 software demo by visiting the 1099 tax software page.

Thirty six states require 1099 forms reporting for various types of non-payroll compensation and other miscellaneous income. While the 1099 filing requirements and dollar reporting thresholds may vary, the requirement to file a state return is generally contingent on the reporting requirements for the state in which the 1099 recipient resides. The states not requiring tax filing for 1099 forms are Alaska, District of Columbia, Florida, Illinois, Iowa, Louisiana, Nevada, New Hampshire, New York, Oregon, South Dakota, Tennessee, Texas, Washington and Wyoming

For the states below the payer is required to print a state copy of the 1099 form and mail it to them.

STATE TAXING AGENCIES

You can easily meet the State 1099 Filing Requirements using our 1099 software. Start today by downloading a free demo.

Businesses in Oregon State can use our 1099 software to report 1099s electronically. The software can also print Oregon 1099 form on regular paper. To learn more about our 1099 reporting software, please go to www.realtaxtools.com .

Effective for calendar year 2011, businesses with 250 or more of any one type of 1099 information return are required to report return information electronically.

The Oregon Department of Revenue will follow the same file specification for the 1099 forms  information as the Internal Revenue Service.

The transmittal due date is March 31, 2012. Forms 1099-MISC, 1099-G, 1099-R, and W-2G are filed electronically only; paper 1099s or other forms of media are not accepted.

Our 1099 e-filing software complies with IRS Publication 1220 (Specifications for Filing Forms 1098, 1099, 5498, and W-2G. Electronically).

Payers issuing fewer than 250 information returns may also file their 1099s electronically if they choose, but will be required to file electronically starting with the due dates below:

   For payers that issue 100 or more but less than 250, electronic filing begins with 2012 forms due in 2013.

   For payers that issue more than 10 but less than 100, electronic filing begins with 2013 forms due in 2014.

 Start by downloading our W2 Mate software and see how easy it’s to prepare Oregon state 1099 forms.

Businesses in Oregon can use our W2 Software to report W-2 information electronically. A free demo of our W2 reporting software can be downloaded from the w2 software download page.

Oregon W-2 Filing requirements

Effective for calendar year 2010, businesses with 50 or more employees and all payroll service providers are required to report W-2 information electronically.

The Oregon Department of Revenue will follow the same file specification for the W-2 forms information as the Social Security Administration.

The transmittal due date is March 31, 2011. Forms W-2 are filed electronically only; paper W-2s or other forms of media are not accepted.

Visit the Social Security Administration’s website for more information about their EFW2 format.

Employers that do not use a payroll service and have fewer than 50 employees may also file their W-2s electronically if they choose, but will be required to file electronically starting with 2011 forms.

To learn more about W2 E-Filing, please visit our website at www.realtaxtools.com .

Businesses in Baltimore City can use our payroll tax software to automatically calculate Baltimore City Tax and Maryland state withholding. The software gives users everything they need to prepare Baltimore payroll and print payroll checks. A free demo of the software can be downloaded by visiting the Maryland payroll software page.

Effective January 1st, 2011 the Baltimore city income tax rate will increase to be 3.2%, the old rate was 3.05%. This rate change will be automatically reflected in the payroll withholding tables that ship with our payroll software.

Below is a list of the Maryland local income tax rates for tax year 2010:

To learn more about our small business payroll software, please visit www.realtaxtools.com .

1099 Reporting changes made by the Health Care Bill

Our 1099 reporting software gives accountants and businesses all the tools they need for printing and e-filing 1099’s and W2’s. You can read more about this software from the 1099 software page.

The IRS is seeking comments regarding expanded 1099 reporting requirements with respect to the reporting of payments made in the course of the payor’s trade or business. The new reporting requirements are in section 6041 of the Internal Revenue Code (the Code), which was amended by section 9006 of the Patient Protection and Affordable Care Act of 2010. Very generally, these amendments expand existing information reporting requirements to apply to payments made to corporations and to include certain payments of gross proceeds and with respect to property. The new reporting requirements under these amendments apply to payments made after December 31, 2011.

Section 6041 generally requires information returns to be made by every person (payor) engaged in a trade or business who makes payments, as defined in section 6041(a), aggregating $600 or more in any taxable year to another person (payee) in the course of the payor’s trade or business. The information returns must be filed with the Internal Revenue Service and corresponding statements must be sent to each payee. Form 1099-MISC, Miscellaneous Income, is generally used for this purpose, although Form W-2, Wage and Tax Statement, is generally used for payments to employees.

The Act amended section 6041(a) to add payments of “amounts in consideration for property” and “gross proceeds” to the list of payments subject to reporting. However, the Act retained existing exceptions in section 6041(a) for “payments to which section 6042(a)(1), 6044(a)(1), 6047(e), 6049(a), or 6050N(a) applies,” and “payments with respect to which a statement is required under the authority of section 6042(a)(2), 6044(a)(2), or 6045.” These excepted payments include most interest, dividends, royalties, and securities and broker transactions.

The Act also added new section 6041(h) regarding the application of section 6041 to payments made to corporations. Existing regulations under section 6041 generally except payments to corporations, exempt organizations, governmental entities, international organizations, and retirement plans from reporting under section 6041. See Treas. Reg. §1.6041-3(p). New section 6041(h) provides that, notwithstanding any regulation prescribed by the Secretary before the date of enactment, for purposes of section 6041, the term “person” includes any corporation that is not an organization exempt from tax under section 501(a). Thus, under new section 6041(h), payments to corporations that are not tax-exempt may be subject to information reporting.

Finally, the Act added new section 6041(i) authorizing the Secretary to prescribe such regulations and other guidance as may be appropriate or necessary to carry out the purposes of section 6041, including rules to prevent duplicative reporting of transactions. Also, section 6041(a) provides generally that information returns under section 6041 shall be furnished under such regulations and in such form and manner, and to such extent, as may be prescribed by the Secretary.

The Treasury Department and the Internal Revenue Service intend to issue guidance that will implement these changes to section 6041 in a manner that minimizes burden and avoids duplicative reporting. This notice requests comments regarding possible approaches to the section 6041 guidance that will assist in achieving those goals.

For example, the Treasury Department and the Internal Revenue Service have already issued a proposed regulation that would allow a broad exception from section 6041 information reporting for payment card transactions that would otherwise be reportable under section 6050W of the Code, effective for payments beginning in 2011. This proposed regulation is expected to be finalized later this summer. Thus, business purchases made with payment cards will be exempt from information reporting under section 6041.

The Treasury Department and the Internal Revenue Service request comments on additional circumstances in which duplicative reporting might otherwise occur under section 6041 and another Code section, such as section 3402(t), and on rules that would prevent such duplicative reporting. Specific comments are also requested regarding the burden associated with implementing the new reporting requirements for different types of taxpayers and businesses.