The IRS established the Combined Federal/State Filing (CF/SF) program “to simplify information returns filing for payers. Through CF/SF, the IRS electronically forwards information returns (original and corrected) to participating states” (IRS Publication 1220).
You can use Breeze to submit 1099 data that the IRS can forward to participating states. By default, Breeze now recognizes participating states.
Some states require you to include additional information for CF/SF submissions. You enter this information in the State Special Data Entry field. Check with your accountant or state tax authority to determine your state’s requirements.
For example, Wisconsin requires the number 036888888888801 if you were not required to withhold tax and have never held a Wisconsin withholding tax number. This number appears by default in the State Special Data Entry field for Wisconsin, but it is not appropriate for all filers. IRS Publication 1220 contains information about the program, including a list of participating states.
Note: Previously, this feature was not supported by the IRS for NEC forms, but starting in 2021, it is supported for NEC forms as well as MISC.
To view or change CF/SF settings
Go to Accounting > IRS Forms > Combined Federal/State Code.
If you want to add required state-specific information, complete the State Special Data Entry field for the state.
If you made any changes, click Save.