publication 1220

The IRS recently released Publication 1220 for the tax year 2021. Here’s what you need to know. What is Publication 1220? IRS Publication 1220 is a document released yearly that lays out the specifications for the electronic filing of the following forms (you can see the full list on page 9 of the publication itself): 1097 1098 1099 3921 3922 5498 W-2G If your business – whether it be a corporation, partnership, employer, estate, and/or trust – is required to file 250 or more information returns in a calendar year, you must file electronically using the FIRE (Filing Information Returns Electronically) System by way of a TCC (Transmitter Control Code). While it’s not required, all businesses that have fewer than 250 are also encouraged to e-file their forms and keep that data safely stored so as to discourage fraudsters. Updates for Tax Year 2021 Since the original document is a 163-page PDF, we thought we would break down some of the biggest updates to Publication 1220 for the tax year 2021. First and foremost, let’s talk about Form 1099-NEC. When the IRS released Publication 1220 for the tax year 2020 in October of that year, the newly revamped 1099-NEC was not included in the IRS 1099 CF/SF (Combined Federal and State Filing) Program. But that changes this tax season, as the NEC is now eligible for e-filing. Before we get ahead of ourselves, let’s talk about the conditions of this change. There are still 36 states plus the District of Columbia (as of December 2021) that have their own direct reporting requirements for the 1099-NEC that cannot be met through CF/SF. And there are a number of states – Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Washington, and Wyoming – that do not participate in the CF/SF program at all but mandate direct reporting instead. It's also important to note that state-based electronic filing requirement updates must also be met, in addition to IRS guidance. Unfortunately, tax …

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