Filing Instructions...
The Oklahoma Tax Commission no longer accepts paper, mag-media, thumb drives or CDs for reporting 1099 data. 1099 data is
required to be submitted electronically on the same schedule and in the same file layout as you currently provide to the IRS. Additional
information for uploading 1099 data is provided on our website (
www.tax.ok.gov).
Instructions for OK Form 501:
https://www.ok.gov/tax/documents/501-16.pdfThat created an issue for many small businesses, who lack the required specialized (and proprietary) software to expert the data in the right format for submission. Which is dumb, why doesn't the IRS (same format used by OTC) just make an applet to input the data - why do I have to buy special programs and special forms to submit tax information? You want to help small business, here's a small start: make it easy to comply with the law.
I digress, the OTC figured out the issue apparently, it looks like the following decision was made in January:
Am I required to electronically file my 1099s?
We understand submitting 1099s electronically will be difficult for many small businesses. Electronic submission of 1099s is not a requirement. Electronic and paper copies are not required to be filed with The State of Oklahoma for tax year 2016, but W-2 and W-3 submission is still required.
https://www.ok.gov/tax/faqs.html#c551Maybe that's why individuals need to submit support docs?