Massachusetts 1099 filing requirements

Massachusetts is the state most likely to catch out a firm that reasons from the CF/SF participant list. It is on that list, and the participation buys you nothing: the Department of Revenue requires direct filing regardless.

The underlying obligation is statutory and broad. Massachusetts General Laws chapter 62C, section 8 requires an annual report of interest, dividends and other income taxable under chapter 62, reported on the same basis the federal government requires, which federally means 1099 forms.

The short version

Is a state filing required?

Yes, for Forms 1099-MISC and 1099-NEC among others, as part of the annual report of income taxable under chapter 62.

Does CF/SF satisfy the state?

No. The Department states that although Massachusetts participates in the program, all transmitters must file 1099-MISC, 1099-DIV, 1099-INT, 1099-K, 1099-NEC and 1099-R directly to DOR regardless of participation.

Due dates

Form 1099-NEC and Form 1099-K are due January 31. Most other 1099 reports are due March 31 if filed electronically, February 28 on paper. If a due date falls on a Saturday, Sunday or legal holiday, the next business day is timely.

Reconciliation form

None found for 1099s. Form M-3 is the reconciliation for Forms W-2, not for information returns, a common mix-up.

Electronic-filing threshold

50 or more of a particular 1099 form must be filed in machine-readable form; fewer than 50 of that form may be filed on paper. Note the per-form-type wording: this is not the federal aggregate rule.

Channel

MassTaxConnect bulk filing, with a 250 MB upload limit.

File format

Generally the federal guidelines in IRS Publication 1220, with documented modifications for Massachusetts municipal bond interest.

Two things to be careful about

The 50-form threshold is stated per form type (50 or more of a particular 1099 form), which is the opposite of the federal aggregation rule. A client with 40 Forms 1099-NEC and 30 Forms 1099-INT is over the federal 10-return mandate and under the Massachusetts electronic threshold for each individual form type.

And the Department's page directs nonemployee compensation to Form 1099-NEC rather than Form 1099-MISC, citing Publication 1220 Part A section 7 for it. If a client's bookkeeping still routes contractor payments to the 1099-MISC, Massachusetts is a state that has written the correction down.

Why Massachusetts appears here at all

We wrote these nine guides because they are the states our customers' clients actually live and work in. Where a state's rule is unresolved on the state's own published pages, this article says so rather than picking an answer.