The IRS established the Combined Federal/State Filing (CF/SF) program “to simplify information returns filing for payers. Through CF/SF, the IRS electronically forwards information returns (original and corrected) to participating states” (IRS Publication 1220).
CAUTION: Do not change settings on the 1099 Combined Federal/State Filing Program Participating States screen except as advised by a tax professional, the IRS, or a state tax authority.
IRS Publication 1220 contains information about the program, including a list of participating states.
To view CF/SF settings, select 1099 Utilities > Combined Federal/State Code. The 1099 Combined Federal/State Filing Program Participating States screen appears.