Tax & Accounting Blog

2018 Tax Information Reporting Updates: What You Need to Know

Blog, ONESOURCE, Tax Information Reporting April 5, 2018

US corporations are required to report a lot of information to the IRS. For example, a big life insurer may need to file millions of 1099 forms with the IRS in any given year. But tax information reporting should not be taxing itself. That is why we keep making enhancements to the ONESOURCE Tax Information Reporting application to make information reporting more efficient and easy for our clients.

Our focus is to fully comply with any new changes in state and federal laws that impact information reporting requirements. Over the past two years, several states have been making changes to their information reporting processes with two objectives: accuracy and timeliness of information returns. The following changes will be effective for information reporting in 2018.

Delaware 1220 Filing

  • Only Forms 1099-MISC and 1099-R are directly reportable to the state. 1099-MISC paper filing is required when state withholding is greater than $0.00, and/or the Oil/Gas indicator is set. 1099-R electronic filing is required when state withholding is greater than $0.00.

Indiana 1220 Filing

  • Filings are now batched by payer EIN. One file is generated when multiple payer codes with the same EIN are selected. Multiple files are generated when multiple payer codes with different EINs are selected.

Iowa 1220 Filing

  • ONESOURCE Tax Information Reporting supports Iowa 1220 filing. The output includes details on how to file. Iowa does not require 1099 forms to be filed for tax year 2017.

Maine 1220 and W-2 Filing

  • The filing due date is January 31.

North Carolina W-2 filing

  • Electronic filing is now accepted. ONESOURCE Tax Information Reporting supports the North Carolina W-2 filing format.

Oklahoma 1220 Filing

  • Oklahoma will participate in the IRS Combined Federal/State Filing Program (CF/SF) beginning with tax year 2017.

Oregon Filing

  • Oregon now requires 1099 filings for forms where:
    • The payer has an Oregon address.
    • The recipient has an Oregon address.
    • There is Oregon withholding.
  • Oregon filings were updated to include forms that have the scenarios listed above.

Virginia 1220

  • Virginia 1220 filings include zeros (0) when the recipient TIN is blank in the ONESOURCE Tax Information Reporting application.
  • Virginia will no longer participate in the IRS CF/SF Program.

Of course, there are additional changes for certain states that apply to the 1099-K reporting threshold this year. With so many regulatory changes to keep track of, application users might make mistakes. That is why we have also introduced some changes in the application, e.g. ability to rollback a print batch or a filing batch, or the ability to easily move a print profile from a test database to production. These changes are aimed at making our clients fully compliant with their tax information reporting needs while making the process easy.

Take Action

Learn how ONESOURCE Tax Information Reporting makes information reporting easy and keeps you in full compliance with any new federal and state regulations. Contact us today.