• Glossary
  • Combined Federal/State Filing Program

Combined Federal/State Filing Program

The Combined Federal/State Filing (CF/SF) Program was created by the IRS to make it easier for taxpayers to file information returns. Via the CF/SF Program, the IRS/IRB sends approved filers' original and revised electronically submitted information returns to participating states without charge. It is not necessary to submit separate reports to those states.

Information That May Be Submitted Under The CF/SF Program

The following information returns may be filed under the CF/SF program:

  • 1099-B — Proceeds From Broker and Barter Exchange Transactions
  • 1099-DIV — Dividends and Distributions
  • 1099-G — Certain Government Payments
  • 1099-INT — Interest Income
  • 1099-K — Payment Card and Third Party Network Payments
  • 1099-MISC — Miscellaneous Income
  • 1099-NEC — Nonemployee Compensation
  • 1099-OID — Original Issue Discount
  • 1099-PATR — Taxable Distributions Received From Cooperatives
  • 1099-R — Distributions From Pensions, Annuities, Retirement Profit-Sharing Plans, IRAs, Insurance Contracts
  • 5498 — IRA Contribution Information

You will see a CFSP (Combined Federal State Program) field on the user interface if you click on any of the aforementioned URLs. Just enter a participant state in the CFSP field, and the IRS will send the data to that state.

Understanding Combined Federal And State Filing

To make filing tax returns easier, the IRS created the Combined Federal/State Filing (CF/SF) programme, which eliminates the need for separate reporting to each participating state.

The software generates a text file that satisfies with the IRS criteria for electronic filing, and the IRS specifies the format for combined federal and state filing.

If you choose the Combined Federal State Filing option on Write 1099 Media, the Write Media software (R04515):

  1. Creates a B record with the federal total for each supplier. Also, the application adds the entry to the 1099 Electronic Media table (F04515OW).
  2. Creates a K record for every state that contains information on all of the suppliers and the total amount paid to them. Also, the application adds the entry to the 1099 Electronic Media table (F04515OW).

The IRS state code necessary for each participating state is contained in the user-defined code (UDC) table 04/ST, which is used by the Write Media program.

The Export 1099 Electronic Work File programme (P04515A) can be used to create the test file needed for IRS approval after the Write Media programme (R04515) writes records to the F04515OW table.

Review the following details to make sure you are aware of the features' restrictions and scope before deciding to use the combined federal and state filing feature:

  1. Only those who file electronically can combine their federal and state filings.
  2. State and federal filing jointly is not permitted in many states. The laws in the states where you file should be researched. Only the states currently taking part in the combined federal/state filing scheme are included in the UDC table 04/ST that is provided with the 1099 year-end software.
  3. Instead of using specific state minimum numbers, the Write Media software uses federal minimum amounts that are listed in the processing choices. Unless the required amount is met, avoid using combined federal and state filing.
  4. Because of a change in address, suppliers who have more than one reporting state are not taken care of by combined federal and state filing. The Write Media programme utilizes the current address of each provider to construct a single B record for each source.
  5. For the compilation of all B records, the federal government publishes a single set of standards; however, a participating state may have extra requirements. Only the federal regulations are supported by the feature of combined federal and state filing. Other needs unique to any of the participating states are not handled by the software.
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