The only 1099 forms that you must file with the state of Arizona Department of Revenue are copies of 1099-R. To combat the tendency of taxpayers to underreport income, the IRS put together an information return program. Information returns are not the same as tax returns. Instead, they are forms describing financial transactions and generally fall within the family of 1099 forms.
The Big Family of 1099 Forms
Information returns report taxable income paid to someone that isn't salary or wages, so no taxes are withheld. The person or company paying the money has to file the information return with the IRS so that the taxing authority knows about this income. The income data is programmed into IRS computers and cross-checked against taxpayer returns to make sure the amounts were reported. If money reported in the information returns doesn't show up on a tax return, the dreaded IRS letter seeking payment of taxes, interest and penalties arrives in the mail.
Types of 1099 Forms
What types of information returns are required by the IRS? Lots and lots. These include:
- 1099-A Acquisition or Abandonment of Secured Property
- 1099-B Proceeds From Broker and Barter Exchange Transactions
- 1099-C Cancellation of Debt
- 1099-CAP Changes in Corporate Control and Capital Structure
- 1099-DIV Dividends and Distributions
- 1099-G Certain Government Payments
- 1099-H Health Coverage Tax Credit (HCTC) Advance Payments
- 1099-INT Interest Income
- 1099-K Merchant Card and Third Party Network Payments
- 1099-LTC Long-Term Care and Accelerated Death Benefits
- 1099-MISC Miscellaneous Income
- 1099-OID Original Issue Discount
- 1099-PATR Taxable Distributions Received From Cooperatives
- 1099-Q Payments From Qualified Education Programs (Under Sections 529 and 530)
- 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
- 1099-SA Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
Arizona Reporting Requirements
States have the right to demand copies of 1099 forms. But most states' taxing authorities piggyback off federal returns, basing their residents' state tax returns on their federal returns. Taxpayers have to include money from information returns on their federal returns, so many states do not ask for copies of all or even many of the types of 1099.
Arizona only requires that one type of 1099 form is submitted to its taxing authority – the 1099-R. This information return reports Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, and more.
The date to submit the 1099-R to Arizona changes every year. You can file the 1099 on paper or electronically. If you file 250 or more 1099 forms with Arizona you are encouraged to file electronically. Submit the forms to the Arizona Department of Revenue, 1600 W. Monroe, Phoenix, AZ 85007-2650.