Which States to send 1099 "Copy 1 for State Tax Department"?

[tapsiwinkler]

Hello,

I have a quick question re the 1099s, specifically:
"Copy 1 for State Tax Department"

I sent out all the 1099s to my 18 people.
And I sent the 1096 to the IRS.

But...: do I need to mail the 1099 "Copy 1 for State Tax Department" to the respective states??

I have a NY S-corporation, and I personally live in CT.

In 2010, I paid people in the following states:

NY
NJ
Oregon
CA
VA
MA
CT

I didn't withhold any taxes. And just paid them the respective amounts in full.

Thanks in advance!

[Diane Kennedy]

The "copy 1" for state would go to the states in which you have nexus. So if the business is in NY, then for sure you have NV nexus and they get a copy. If you also have nexus in another state, then run a copy for them as well.

[tapsiwinkler]

Thanks for the reply!

I live in CT. But I have a NY S-corp. (Set up when I used to live there.)
So, my business potentially has CT Nexus, because I live there.
But no Nexus to any other states (besides NY as the home state of the corp., and CT).

Mhhhh. Incidentally, my former CPA told me that for NY they don't require to send the "Copy 1 for State Tax Department".

BTW, since my company is an S-corp. that was set up in NY, I naturally have NY nexus right out of the gate.

But, for example, my NY s corp paid an attorney in CA $650 last year to set up some contracts. (The attorney is not incorporated.)
So, do I now have to send CA the "Copy 1 for State Tax Department" of that 1099?

I/my company have/has no other ties to CA...

Or, I paid a consultant for advice with streaming online videos $600+ last year, who lives in VA.
Do I now have to send VA the "Copy 1 for State Tax Department" of that 1099?

I/my company have/has no other ties to VA...

Etc.

It seemed to me this had less to do with "Nexus" than with "certain states require to get a "copy 1 for state tax department", if a company in another state pays their resident. And some states don't...

I may be wrong.

Anyway, since I will become a client tomorrow, , I will ask those questions to the accountant I will work with.

Thank you!

[Diane Kennedy]

Great nexus questions! You're right hiring the attorney in CA didn't give you any nexus. I wasn't really clear with my response - let's say you hired an assistant in VA who sold for you and performed some work for you. You have nexus in VA and that person lives in VA, in that case you need to send a copy to VA.

To be honest, I'm not sure how much it matters since the states are all pulling copies of the IRS reports anyway. I suspect it's just one more way for the states to attempt to keep track of what is going on in their state.

Welcome aboard!