QB Issue Resolution:
To verify which copies should be given to the state or to your vendors, you can check on these articles from the IRS:
Resolution for Issue 'i am ready to mail out the 5 copies of the 1099 misc. forms Do I keep both copies of C or do I mail one directly to the state?' available: Yes (Solved).
Source: Intuit Community forum.
i am ready to mail out the 5 copies of the 1099 misc. forms Do I keep both copies of C or do I mail one directly to the state?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for 1099 misc
Quickbooks Repair Pro will resolve it efficiently and affordably. Guaranteed resolution of your issue, or you pay nothing!
Error Recovery for 1099 misc [Canada]
E-Tech is the #1 Quickbooks data migration and Conversion service provider.
Additional Support Options: