Where to Send 1099-NEC Forms in California: IRS, FTB, and EDD

In California, a 1099-NEC has three destinations and one companion filing. Copy A goes to the IRS, Copy 1 goes to the California Franchise Tax Board (often automatically through a federal-state data-sharing program), and Copy B goes to the contractor who earned the income. Separately, California requires you to file a Report of Independent Contractor (Form DE 542) with the Employment Development Department, which does not receive the 1099-NEC itself. Here is where each piece goes, how to send it, and when it is due.¹

Sending Copy A to the IRS

How you send Copy A depends on how many information returns you file in a year, counting all types together: W-2s, 1099-NECs, 1099-MISCs, and the rest.

If You File 10 or More Information Returns

Electronic filing is mandatory once your total across all information return types reaches 10. A business issuing five W-2s and five 1099-NECs is already over the line and must e-file everything.²

The IRS offers two electronic platforms. The Information Returns Intake System (IRIS) Taxpayer Portal is free and web-based; you can key in data manually or upload a CSV of up to 100 returns at a time.³ The older Filing Information Returns Electronically (FIRE) system requires third-party software and is scheduled to shut down at the end of 2026, leaving IRIS as the sole channel for tax year 2026 returns filed in 2027.

Both platforms require a Transmitter Control Code (TCC). Applications typically clear in 24 hours but can take up to 45 days, so apply well before filing season. An IRIS TCC is a separate five-digit code that works only on IRIS; a legacy FIRE TCC does not carry over.⁴

If You File Fewer Than 10

You can file on paper. You must use the official scannable red-ink Copy A and include a Form 1096 as the transmittal cover sheet. Photocopies and black-and-white versions get rejected because the IRS scans these forms optically.⁵

California-based paper filers mail Copy A and Form 1096 to:

Department of the Treasury
Internal Revenue Service Center
1973 North Rulon White Blvd.
Ogden, UT 84201⁵

The IRS Deadline

Copy A is due January 31, whether you e-file or paper file.⁶ When that date lands on a weekend or holiday, the due date rolls to the next business day. For tax year 2025 returns, January 31, 2026 is a Saturday, so the deadline moves to Monday, February 2, 2026.⁵

Sending Copy 1 to the Franchise Tax Board

Whether you need to send anything directly to the FTB depends on whether your federal and state reported amounts match.

When the IRS Forwards Your Data Automatically

California participates in the IRS Combined Federal/State Filing (CF/SF) program. If you e-file with the IRS through FIRE or IRIS following the CF/SF rules in IRS Publication 1220, and the amounts you report federally and to California are identical, you do not need to file separately with the FTB. The IRS forwards your data. The same automatic forwarding applies to paper filers whose federal and state amounts match.⁷

When You Must Send Copy 1 Directly

Direct filing with the FTB is required when the amount reported to California differs from the federal amount. That mismatch most often comes up when a contractor worked partly inside and partly outside California, or when California backup withholding creates a different reportable figure.⁸

If you have 249 or fewer returns to send directly, mail Copy 1 to:

Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-6090⁷

The FTB does not require Form 1096. If you have 250 or more returns to file directly, you must submit them electronically through the FTB’s Secure Web Internet File Transfer (SWIFT) system.⁷

FTB Deadlines

California’s deadlines for direct filings are later than the federal date. Paper filings with the FTB are due February 28, and electronic filings are due March 31.⁸ If you rely on CF/SF, the January 31 federal deadline is what controls when your data reaches the FTB.

A Common Trigger for Direct Filing: California Backup Withholding

If a contractor fails to give you a valid taxpayer identification number or gives an incorrect one, California requires you to withhold 7% of the payment and remit it to the FTB. That is separate from the federal backup withholding rate of 24%.⁹ When state backup withholding applies, your federal and state 1099-NEC amounts will differ, so CF/SF will not cover you and Copy 1 must go directly to the FTB.

Filing the DE 542 With the EDD

The EDD does not receive a copy of the 1099-NEC. California law instead requires a separate report, Form DE 542, whenever you pay or contract with an independent contractor. The deadline is tight: within 20 calendar days of either making a payment of $600 or more, or entering into a contract for $600 or more, whichever comes first. Verbal contracts count, and the $600 threshold includes bundled parts and materials.¹⁰

You can submit the DE 542 through the EDD’s e-Services for Business portal online, by fax to 1-916-319-4410, or by mail to:

Employment Development Department
PO Box 997350, MIC 96
Sacramento, CA 95899-7350¹⁰

Late reports carry a $24 penalty per failure. If the EDD finds that the failure resulted from a conspiracy between you and the contractor to avoid reporting, the penalty is $490.¹¹

Delivering Copy B to the Recipient

Every person named on a 1099-NEC must receive Copy B by January 31 of the year following the payment.⁶ Mail it to the contractor’s last known address, or deliver it electronically. Electronic delivery requires the recipient’s affirmative consent before the due date; you cannot simply email it without permission. Copy B can be printed in black and white. The red-ink requirement applies only to the IRS copy.

Penalties for Missing a Destination

IRS penalties for failing to file a correct 1099-NEC on time are assessed per return and climb the longer you wait. For returns due in 2026:

Up to 30 days late: $60 per return
31 days late through August 1: $130 per return
After August 1 or never filed: $340 per return
Intentional disregard: $680 per return¹²

The same tiers apply separately to failing to provide the recipient their copy on time, so one overlooked form can generate two penalties.

California assesses its own penalty for failing to file correct information returns with the FTB, calculated in accordance with the federal structure under IRC Section 6721.¹³ A single missing form can draw penalties from both the IRS and the FTB.

Which Payments Trigger a Filing

For tax year 2025 payments reported in early 2026, the threshold for a 1099-NEC is $600 in nonemployee compensation. Starting with tax year 2026 payments (filed in early 2027), federal law raises the threshold to $2,000, with inflation adjustments in later years. The change, enacted by P.L. 119-21, also applies to payments to attorneys.¹⁴¹ If you are filing now for 2025, the $600 figure still controls. The DE 542 filing threshold with the EDD is a separate $600 trigger and is not affected by the federal change.

1
Internal Revenue Service. Publication 15 (2026), (Circular E), Employers Tax Guide
2
Internal Revenue Service. E-file Information Returns
3
Internal Revenue Service. E-file Information Returns With IRIS
4
Internal Revenue Service. Information Returns Intake System (IRIS) FAQs
5
Internal Revenue Service. General Instructions for Certain Information Returns (2025)
6
Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (04/2025)
7
Franchise Tax Board. Guidance for Reporting Information Returns
8
Franchise Tax Board. Guide to Information Returns Filed With California
9
Franchise Tax Board. Backup Withholding
10
Employment Development Department. Independent Contractor Reporting
11
Employment Development Department. Frequently Asked Questions About the California Independent Contractor Reporting Law
12
Internal Revenue Service. Information Return Penalties
13
California Legislative Information. California Revenue and Taxation Code Section 19183
14
Internal Revenue Service. Form 1099-NEC and Independent Contractors