What modifications to the Form 1099 specifications in IRS Publication 1220 are to be made for Massachusetts?
There are modifications to be made for municipal bond interest as explained below. For Interest from BONDS: Use the 1099-INT format to record earnings on each state or local bond. Report the income as if it were taxable for federal purposes. Note: A return is due for each bond on which interest is paid. Report payment amounts in positions 55-66 of the payee “B” record. Right-justify and zero-fill. Enter the issuer or security name in positions 569-607. Left-justify and blank-fill. For Interest from MUTUAL FUNDS: Use the 1099-INT format to record earnings from mutual funds, money market funds, and unit investment trusts. Report the income as if it were taxable for federal purposes. Use positions 40-42 of the “A” record to report the percentage of mutual fund portfolio income distribution attributable to bonds issued by Massachusetts, Puerto Rico, Guam and the Virgin Islands, rounded to the nearest whole number – e.g. 25.4% would be reported as 025 and 25.5% would be reported as 026. Rep
