Best Practices Tip for Income Tax Professionals – 1099 statements

Preparers are urged to ask their income tax clients whether they have any 1099 statements that show Colorado withholding. Individuals should also note the following information.

When filing a paper return, the 1099s that show Colorado withholding should be attached (stapled) to the form in the same area where the W-2s are attached.

When filing an electronic return, we recommend attaching scanned copies to the e-filed tax return. While there is no requirement to attach 1099s to an e-filed return, the copies will allow the department to process the returns when questions arise during return review, or when the entities that issued the 1099s have not yet submitted the statements to the department. The taxpayer’s 1099s may also be submitted through Revenue Online, Submit an e-Filer Attachment

For more information about 1099 documents, see publication FYI Income 2.

For more tips, see the 2013 Income Tax Year Best Practices on the Tax Professionals Web page.