Does the supplier of 1099R submits this form to a state tax authority? If yes — does it submit to the a particular state based on the MAILING address shown on 1099R? Or does it submit to the state whose the supplier of 1099R has on file based for the PHYSICAL address that the supplier of 1099R has on file.
And I suppose that each state that receives this 1099R — then compares the information against the tax return of the person whose name is shown on the 1099R? So if the 1099R is sent to the wrong state (because of not updating the address) — this can create issues with that state as this state may think that the person is a resident of this state and thus require this person to submit a tax return (though this person already moved out of the state). Am I correct on that? Thank you very much for taking time to answer my question.
Yes, anything is possible due to different treatment between states, and how aggressive the state is (eg NY, CA). Another variable is state tax withholding, which is occasionally sent to a state with no tax liability, and that requires a return to be filed to get the withholding refunded.
Permalink Submitted by Alan - IRA critic on Mon, 2020-01-13 15:52
The latter. Most of these transmissions are electronic by now.