QB Issue Resolution:

Thanks for using the 1099 E-File Service in QuickBooks Online (QBO).

The 1096 forms isn’t required by the IRS when you e-file the 1099 forms. That is one less piece of paper. Check out this link for the 1099 FAQS: File 1099 Online.

With regards to your second question, Massachusetts is one of the states that support the Combined Federal and State Filing (CF/SF) Program. This means that IRS will forward the electronically filed 1099 forms to Massachusetts. Therefore, separate reporting to your state is no longer required.

That information should get you on the right track

Resolution for Issue 'I’ve filed our 1099 through QB E File Service so I know I don’t need to file the form 1096. Question: Do I need to file with state – MA?' available: Yes (Solved).
Source: Intuit Community forum.

I’ve filed our 1099 through QB E File Service so I know I don’t need to file the form 1096. Question: Do I need to file with state – MA?: 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.

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