9. The Case of the State Filing

PREVIOUSLY: THE MYSTERIOUS CASE OF THE TIN MATCH

With every day that the tax season got closer, Walter learned more about Tax1099. Walter had realized that Tax1099 could keep him out of trouble with the IRS. His discovery of the TIN match feature gave him confidence.

Vendor information was easy to validate now. Walter could request TIN match from the “Manage People” tab. He could do this as soon as he had entered vendor information. This way, Walter’s records would be ready well in advance of the filing season. Even if he delayed, Walter could request the TIN match while creating forms.

Requesting a TIN match would direct Tax1099 to check vendor information. Tax1099 runs vendor information against the IRS database. Results are sent to the account holder’s email when ready.

Even if the worst were to happen, and a match were to be rejected … Walter could rest easy knowing he could solicit a W-9 through Tax1099. The vendor could fill out fresh information, which would feed directly into Tax1099.

THIS WEEK

Walter suddenly realized he hadn’t prepared for his state filing. He had been so focused on the IRS, he had forgotten about state filing requirements.

Walter steeled himself for the research he was about to throw himself into. He’d have to track down state compliance requirements. He could only hope that they were up-to-date.

Walter sank into his desk chair, and swiveled around to his computer. Then, he stopped for a moment. Maybe Tax1099 would have something to say about state filing.

Full of hope, Walter navigated to Tax1099 and opened a live chat window with their support team.

“Hello,” he said, “Can you tell me anything about state filing requirements?”

“Of course,” the specialist replied. “As you probably know, Tax1099 tracks all state requirements. You don’t have to worry about finding the most recent updates – just go through our filing process. We’ll tell you what you need to know along the way.”

“Really? You’ll tell me what I need to do to complete the filing for my state?”

“Yes! Here are a few things to keep in mind when it comes to state filing.”

• Some states don’t require a state filing at all. A good example of this is Texas. In Texas, there is no income tax. There are a few other states that don’t require a filing.
• Many states now participate in the Combined Federal State Filing Program (CFSFP). Participating states receive the information they need from your federal filing. You don’t need to send a separate file to those states.
• Some states still require a direct-to-state filing. The individual requirements of these states vary – some ask for a paper filing, some ask for a CD-ROM.

Walter could feel the panic building up inside him. “A CD-ROM? Where am I supposed to get that?”

“Not to worry!” The specialist answered. “Any requirement a state has, we can fulfill. As you’re filing, you’ll be asked if you’d like us to fulfill the state requirement. If you accept, we’ll take care of everything!”

“Oh,” Walter exhaled. “That’s great, thank you. How can I find confirmation that you’ve taken care of the state filing?”

“Well, if you accept our offer to take care of state requirements, you’ll have access to ‘Manage State Forms.’ You’ll see your information in that screen.”

“I see,” Walter typed eagerly. “Thanks again for your help!”

“Anytime! Let us know if you have any other questions.”

“Thank you,” Walter typed, “I’m sure I’ll think of some …”

NEXT WEEK

Walter was exhausted. Preparing to file was taxing. It was time to call it a night. As he did, though, he couldn’t help but feeling that he was missing something. He went through the checklist in his mind …