OUR THOUGHTS ON:

Certain 1099-MISC Forms Must be Filed with the Pennsylvania Department of Revenue

Tax

By Martin DiGiovine

Under Act 85 of 2012, entities paying either nonemployee compensation for Pennsylvania-based work or Pennsylvania-source oil/gas lease payments are required to submit copies of federal forms 1099-MISC to the Pennsylvania Department of Revenue. 1099-MISC forms are required for payments to resident and nonresident individuals, entities treated as partnerships for tax purposes or single-member limited liability companies from any entity required to provide form 1099-MISC to the federal government with respect to the payments.

In previous years, Form 1099-MISC was not required to be filed with the Pennsylvania Department of Revenue. However, as in previous years, certain Forms 1099-R must still be filed with the PA Department of Revenue.

Taxpayers who do not have income items reported in Boxes 1,2 or 7 are not required to file a copy of the 1099-MISC with the Department for the tax year 2012. Taxpayers with income items reported in Boxes 1, 2 or 7 and another Box, e.g., Box 3, need only report the income items from Boxes 1, 2 or 7 for tax year 2012. The forms are due to the department the same time they are due to the Internal Revenue Service.

Filing 

If the payor is required to file electronically for Pennsylvania employer withholding purposes, Forms 1099-MISC must also be filed electronically through the Department of Revenue’s e-TIDES system.

If the payor is registered to perform (but doesn’t actually perform) electronic filing for Pennsylvania employer withholding purposes, it is strongly suggested that filing of 1099-MISC be performed electronically through the Department of Revenue’s e-TIDES system.

If the payor is not registered to perform electronic filing for Pennsylvania employer withholding purposes, the 1099-MISC forms must be submitted in paper format. The forms must be mailed to:

PA Department of Revenue
P.O. Box 280412
Harrisburg, PA 17128-0412

A penalty of $50 may be imposed for each 1099-MISC for a willful failure to file. Remember, only payments for nonemployee compensation and payments under an oil or gas lease from sources within the Commonwealth of Pennsylvania are to be filed with the PA Department of Revenue. No other 1099-MISC forms are to be filed with the PA Department of Revenue.

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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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