The Pennsylvania Department of Revenue (PA DOR) issued on Sept. 6, 2012 Informational Notice Personal Income Tax 2012-02 that provides guidance to payors of (1) either nonemployee compensation or (2) payments under an oil and gas lease for submitting a copy of their federal Form 1099-MISC information returns to the PA DOR. Since PA is requiring a copy of the filing of the Form 1099-MISC with the IRS, the requirement applies only when payments of $600 or more are made in any calendar year.
A payor must submit a 1099-MISC if the payor makes payments of “nonemployee compensation.” A payment is “nonemployee compensation” if it is made to a person that is not an employee and for services in the course of the payor’s trade or business. Generally, a payment is considered “nonemployee compensation” if it is made (i) to someone who is not your employee and (ii) for services in the course of your trade or business.
Rents, royalties, bonuses and other income paid under an oil and gas lease are considered payments “under an oil and gas lease.”
If the payor must file electronically for PA employer withholding purposes, then the Form 1099-MISC must be filed electronically. Electronic submission will be available through the department’s e-TIDES system. Further, if the payor is registered to perform electronic filing for withholding, then the payor is encouraged to file electronically. The due date is the same as the Internal Revenue Service due date for filing.
Paper filing is allowed if the payor is not required or registered to perform electronic filing or if the payor is not subject to Pennsylvania employer withholding. The due date is the same as the Internal Revenue Service due date for filing. The paper forms shall be mailed to the PA Department of Revenue, P.O. Box 280412, Harrisburg, PA 17128-0412.
If a corrected Form 1099-MISC is issued to a payee and the amounts related to income from within PA changes for nonresident recipients or the total amounts change for PA resident recipients, a paper copy of the corrected Form 1099-MISC should be forwarded to the PA DOR.
Useful hint: Payors who are required to issue Forms 1099-MISC should have a valid Form W-9 in their files for each payee.
This blog is for educational purposes only and not for the rendering of tax advice. Be sure to read the Disclaimer page on this blog.
