eNC3 Specifications for 1099 Reporting
Issued by: Personal Taxes
Date: January 30, 2018
These specifications are effective for submissions made on or after January 1, 2018. Prior year data, original and corrected data submitted after January 1, 2018, must also be filed according to these specifications. A separate submission is required for each tax year.
The 2015 session of the North Carolina General Assembly enacted Session Law 2015-259, which included changes to the withholding law designed to increase tax compliance and help the Department combat fraud. The changes affected the manner in which 1099s are filed and when they are due. The changes were effective for taxable years beginning on or after January 1, 2015.
G.S. 105-163.2A(b) and G.S. 105-163.3 requires certain 1099 information returns to be filed on or before January 31 of the succeeding year and in electronic format as prescribed by the Secretary of Revenue. The Secretary may, upon show of good cause, waive the electronic submission requirement. Visit the eNC3 webpage for waiver information.
In addition, the 2017 session of the North Carolina General Assembly enacted Session Law 2017-204 which amended G.S. 105-251.2 to require a “payment settlement entity” to submit a duplicate of all information filed with the Internal Revenue Service pursuant to 6050W of the Internal Revenue Code (i.e. the 1099-K, “Merchant Card and Third-Party Network Payments” information return) with the Secretary of Revenue. A payment settlement entity has the same meaning as in section 6050W of the Internal Revenue Code. The statute also requires the entity to submit the 1099K information to the Secretary in an electronic format. This information must be filed with the Department on or before March 31 for the preceding calendar year. Any report not timely filed with the Secretary is subject to a penalty of $1,000.00. Of note, there is no provision in North Carolina law that permits the Secretary to waive the electronic filing requirement.
Although North Carolina participates in the IRS Combined Federal/State Filing Program, original, void, or corrected versions of the following forms must be filed directly with the North Carolina Department of Revenue.
| Form | Description |
|---|---|
| 1099-K | Payment card and Third-Party Network Transactions |
| 1099-R if Box 2 (State tax withheld) is populated and NC income tax has been withheld, and/or the recipient's address is located in NC | Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. |
| 1099-MISC if Box 16 (State tax withheld) is populated and NC income tax has been withheld, and/or Box 3 (Other income) and/or Box 7 (Nonemployee compensation) is populated, and the recipient's address is located in NC | Miscellaneous Income |
| NC-1099NRS | Sale of Real Property by Nonresidents |
| NC-1099PS | Personal Services Income paid to Nonresidents |
| NC-1099ITIN | Compensation paid to ITIN Contractor |
To file a NC-1099PS or NC-1099ITIN, follow the 1099-MISC format in the IRS Pub. 1220. To file a NC-1099NRS, follow the 1099-S format in the IRS Pub. 1220.
If the recipient’s address is located in North Carolina, the following forms must also be filed with the Secretary in an electronic format if:
- The information was not filed with the Internal Revenue Service via the Combined Federal/State Filing Program; and/or
- The recipient had North Carolina income tax withheld.
| Form | Description |
|---|---|
| 1099-B | Proceeds From Broker and Barter Exchange Transactions |
| 1099-DIV | Dividends and Distributions |
| 1099-INT | Interest Income |
| 1099-OID | Original Issue Discount |
| 1099-G | Certain Government Payments |
| W-2G | Certain Gambling Winnings |
Additional Information
“T” Record
- For position 16-20 - Transmitter Control Code (TCC), please ensure the 5 character (alphanumeric) TCC code is entered. This is a required field and the code is assigned by the IRS.
“A” Record
- For position 225-239 – Payers’ Telephone Number and Extension, do not enter hyphens/dashes.
“B” Record
- State Withholding Account Number MUST be numeric; APPLIEDFOR is not a valid entry. Reference the eNC3 FAQ document for information on how to obtain a withholding account number (if applicable).
Record Name: Payee "B" Record Table:
| "B" record Location | Field Description | Length | Explanation |
|---|---|---|---|
| 663-664 | NC Personal Services (NC-1099PS) NC ITIN Contractor (NC-1099-ITIN) Sale of Real Property by Nonresidents (NC-1099NRS) | 2 | |
| 665-673 | State Withholding Account Number | 9 | State income tax withholding account number. Numeric only; a "APPLIED FOR" is not a valid entry for this field. |
| 674 | Vested (1099-NC Dept. of State Treasurer) | 1 | "V" ONLY for NC Dept. of State Treasurer |
| 675-686 | County | 12 | For NC-1099NRS ONLY. Use "Y"- If property was primary residence; otherwise use "N". |
| 688-689 | State | 2 | State Abbreviation for tax withholding. |
| 699-710 | State Winnings | 12 | For W2-G ONLY (NEW) |
| 711-722 | State Income | 12 | For 1099-MISC ONLY (NEW) |
| 723-734 | State Income Tax Withheld | 12 | |
| 747-748 | Combined Federal/State Filing Program Code | 2 | Blank if not participating, "37" for NC |
| 749-750 | Blank or CR/LF | 2 |
Record length must be 750.
- Alphanumeric fields should be left justified and blank filled. Amount fields are right-justified, zero-filled, dollars and cents decimal implied.
- Amount fields (Payment Amounts 1-9 and A-E plus State Income Tax Withheld) are required. Where dollar amounts are zero, enter zeroes. Blanks are not a valid entry.
- The filing deadline for this information is January 31 annually.
If you have any questions about these specifications, you may call the Department at (877) 252-3052 (8:00 a.m. until 5:00 p.m. EST, Monday through Friday), or write the Department at PO Box 25000, Raleigh, NC 27640.