Connecticut released the 2017 Electronic Specifications for Submission of State and Local Government Tax Exempt Bond Interest Information. There are a number of changes from the previous revision:
- New due date: January 31, 2018
- New specifications:
- A separate “A” record for each fund or bond reported.
- On the “A” record in positions 26-27, use code “B” to indicate this is a Form 1099-B to report both Interest and Interest-Dividends, not a code “6.”
- Use positions 44-46 of the payer “A” record to report the total percentage of mutual fund portfolio income distribution attributable to bonds issued by Connecticut, Puerto Rico, Guam, American Samoa, and U.S. Virgin Islands.
- Use positions 55-66 Payment Amount 1** of the payee “B” record to report payment amounts, including accrued interest received from the buyer at the time of sale.
- Use positions 67-78 Payment Amount 2** of the payee “B” record to report accrued interest paid at the time of purchase to the seller.
- Use positions 79-90 Payment Amount 3** of the payee “B” record to report original issue discount (OID) amounts received.
- Use positions 569-607 of the payee “B” record to report the issuer/security name in the ‘DESCRIPTION' field.
About the Author
Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.More Content by Adam Rivera