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As written, revised Better Care Reconciliation Act will not operate to eliminate either of the reporting requirements on 1094/1095 series forms. The Senate’s second draft of the Better Care Reconciliation Act would maintain employer information reporting obligations under Internal Revenue Code §§ 6055 and 6056. Changes to minimum essential coverage provisions may give rise to a potential modification of […]
The IRS is stepping up reporting scrutiny, specifically focusing on tax credits. There’s no more relevant example than the 1099 reporting changes that heightened error exposure for reporting organizations during the 2016 tax season. Tax information reporting requirements are becoming more complex, with changing deadlines, enhanced tracking and stiffer penalties for non-compliance. This leaves financial […]
Tax compliance has evolved at a rapid pace in recent years. As governments go digital, loopholes are closing and reporting timelines are shrinking from weeks to milliseconds. The old way of doing things isn’t enough for the new world of rapid-response compliance. But these new challenges can also foster new opportunities. Businesses are taking a […]
Illinois’s Department of Revenue has lately released new tax tables and a new withholding allowance certificate in conjunction with it an increase in the state’s tax rate. Effective July 1, 2017, the income tax rate in Illinois is 4.95%, increased from 3.75%. Booklet IL-700-T, “Illinois Withholding Tax Tables,” has been updated effective July 1, 2017. […]
At last week’s G20 summit, OECD Secretary General Angel Gurría reported to world leaders that the past year has seen progress on multiple fronts in the fight against tax avoidance and evasion – thanks in large part to the Convention on Mutual Administrative Assistance in Tax Matters. The official report explores the key areas of progress, including the movement […]
The Idaho State Tax Commission has issued a revised Guide to Income Tax Withholding. The revision is a routine update of the tables for withholding computation methods for 2017. These tables are periodically adjusted for inflation. Although these figures are effective for 2017, withholding agents are not required to adjust the withholding amounts for the months of January […]
Virginia Tax has published a revision of its eForms W-2 – 1099 Guide, which filers should utilize in order to ensure accurate and complete online submissions. The Business iFile system allows the use of eForms, which is a free, secure online service that allows employers and payers to electronically file forms W-2, 1099-R, and 1099-MISC directly […]
The IRS has released ACA Information Returns (AIR) Schemas, Business Rules and Crosswalks for Tax Year 2017. The business rules, schemas and crosswalks are for Forms 1094-B, 1094-C, 1095-B, and 1095-C. There are a number of changes from last year’s with many of the changes coming in the form of name changes for certain data […]
Cook County Illinois suspended collection of their recently enacted sweetened beverage tax after receiving a temporary restraining order from Cook County Circuit Court. The sweetened beverage tax consisted of a $0.01 tax on each ounce of sweetened beverage sold at retail effective July 1, 2017. The Illinois Retail Merchants Association and several grocers sued the […]
New Mexico recently updated a published bulletin which details the effective interest rates for late payments on tax due. This bulletin lists the annual and daily percentage rates for the late payment of taxes due, along with a method for calculating daily interest during the applicable period. The annual rate of interest remains unchanged from […]
Minnesota’s Department of Revenue recently updated Minnesota Income Tax Withholding Instruction Booklet and Tax Tables as well as Fact Sheets 2 and 2a. The Instruction Booklet provides general direction for withholding while Fact Sheets 2 and 2a provide more detailed instructions for submitting W-2 and 1099 information, respectively. Most importantly, all three documents have advanced the […]
The IRS has published Frequently Asked Questions regarding the FFI agreement renewal. The deadline for the renewal is July 31, 2017, and the obligation to renew applies to Participating FFIs not covered by an IGA, Reporting FFIs under a Model 2 IGA, and Registered Deemed-Compliant FFIs that are Reporting FFIs under a Model 1 IGA operating branches […]
On June 26, 2017, Governor John Bell Edwards signed House Bill 629 into law (Act No. 424). Under this Act, polyroll tubing for commercial farm irrigation is now exempt from tax, as well as purchases and leases by qualifying radiation therapy treatment centers. Act No. 424 also limits the exemption for fuels and gases to […]
The IRS recently released Bulletin No. 2017-26. The bulletin is noteworthy particularly because part of this Bulletin will be repurposed into Publication 1179. Below is a list of the changes the IRS has specifically highlighted for attention: Vendor code. The use of a vendor code is encouraged in place of a form printer EINs. See Section […]
The IRS recently published the 2017 version of Form W-2GU, the Guam Wage and Tax Statement. This form is used to report Guam wages, and should not be used to report wages subject to U.S. income tax withholding. While the form itself remains the same, there are minor changes made to the instructions attached to […]
The IRS has released an updated Publication 1179 for Tax Year 2017. This publication provides guidelines for those who create and provide substitute information returns to follow. There are a few changes from the previous revision: Vendor codes The use of a vendor code is encouraged in place of a form printer EINs The 4-digit […]
Last year, Louisiana re-vamped their tax code, and among the changes imposed was that medical devices went from being exempt to being taxed at a 3% rate. This change was scheduled to expire on July 1, 2018. However, on June 23, 2017, Governor John Bell Edwards signed Senate Bill 180 into law (Act No. 426). […]
Just a day before it was slated to take effect, a Cook County Circuit Court granted an emergency motion that temporarily bars the enforcement of the Sweetened Beverage Tax. The ordinance, which was passed last November, would have imposed a $.01 per ounce tax on virtually all sales of sweetened beverages (and beverage syrups) in […]