Tax & Accounting Blog

Form 1099: Pennsylvania has new requirement for 1099-MISC reporting for 2012

1042-S, 1099, 6050W, Information Reporting for Wealth Management, ONESOURCE, State Reporting, Tax Information Reporting, TIN Compliance, Trust Tax, Withholding Management August 15, 2012

A new Pennsylvania tax law requires Form 1099-MISC reporting of some types of payments, beginning with reportable payments made in calendar year 2012 (reported in 2013).  Pennsylvania is not a participating state in the IRS Combined Federal/State Filing Program, so reportable 1099-MISC information will have to be filed directly to the Pennsylvania Department of Revenue.

Prior to this change, the only Form 1099 required by Pennsylvania was the Form 1099-R reporting distributions from retirement arrangements, profit sharing, insurance contracts, etc..

Under an amendment to section 335 of the Pennsylvania tax code made by Act 85 (H.B. 761), Laws 2012, Form 1099-MISC filing is required from any payer who makes payments of income which (1) are from sources within Pennsylvania; (2) are payments of nonemployee compensation, or payments under an oil and gas lease; (3) are paid to a resident or nonresident of Pennsylvania, who is an individual, a single-member limited liability company, or an entity treated as a partnership; (4) and are required to be reported to the IRS on Form 1099-MISC.  The payer is also required to send a copy of the Form 1099-MISC to the payee. 

If the payer is required to perform electronic filing for Pennsylvania employer withholding purposes, the payer is required to file Forms 1099-MISC electronically to the Pennsylvania Department of Revenue.

Section 352 of the Pennsylvania tax code, covering penalties, has been amended to establish a penalty of $50 for willfully failing to file Forms 1099-MISC to Pennsylvania or furnish statements to payees as required, or for willfully furnishing a false or fraudulent form to the state or a payee.