Connecticut Releases 1099 Electronic Filing Specifications for Tax Year 2018

November 30, 2018 Tom Hospod

The Connecticut Department of Revenue Services (DRS) has published IP 2018(12): Forms 1099-R, 1099-MISC, 1099-K, and W-2G Electronic Filing Requirements for Tax Year 2018. There are several changes to these specifications:

  • This publication now applies to all 1099-K filings – the due date for these filings is no later than 30 days after filing them with the IRS
  • Form W-2G filing requirements were clarified to include the following: (1) Connecticut Lottery Winnings paid to resident and nonresident individuals even if no Connecticut income tax was withheld; and (2) other gambling winnings paid to Connecticut resident individuals even if no Connecticut income tax was withheld.
  • Form 1099-R filing requirements have changed: Connecticut now requires all Forms 1099-R showing payments to Connecticut residents, even if no Connecticut income tax was withheld. For all other recipients, the 1099-R is only required if Connecticut income tax was withheld.
  • New Form 1099-K reporting requirement: Report payments to payees located within or with locations in Connecticut.
  • Failure to file the state copy of Form 1099-K with Connecticut will result in a civil penalty of $50 for the first month for each 1099-K not filed, plus $50 for each month, or fraction thereof, for which such failure continues. The total penalty will not exceed $250,000 per year.
  • There are technical changes to the Payee “B” Record for Form 1099-R:
    • New field position 663-670: Date of Payment (Format: YYYYMMDD)
    • New field position 671-722: Special Data Entries (Enter payer Connecticut Tax Registration Number. Right justify and fill unused positions with zeros)

About the Author

Tom Hospod

Tom Hospod is a member of the Tax Research Team for the Direct Tax division at Sovos Compliance, where his main areas of focus are Tax Withholding and Automatic Exchange of Information (AEOI). Prior to Sovos, Tom worked as a legislative aide in the Massachusetts House of Representatives. He also has experience in securities law—focusing on broker-dealer disputes and representing clients in FINRA arbitration. Tom is a member of the Massachusetts Bar, earned his B.A. from Boston College and his J.D. from the University of Miami.

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