Regulatory Analysis
The Internal Revenue Service has provided guidance on whether forgiven Payroll Protection Program (PPP) loans require the issuance of a 1099-C, stating that Form 1099-C should not be filed where loans are forgiven under the CARES Act. The Payroll Protection Program issued forgivable loans to employers to encourage employee retention during 2020; these PPP loans […]
The Indiana Department of Revenue has published their updated W-2 and WH-3 Filing Requirements Booklet for tax year 2020. This booklet contains instructions and specifications for filing wage records (W-2) electronically with the state. There are a few minor changes to this publication, which are as follows: All references to the INtax filing portal were […]
The Kentucky Department of Revenue recently published an updated version of their Specifications for Electronic Submission of Annual Wage and Tax Information via Electronic Media or Web for Year 2020. This publication provides instructions and specifications for filing W-2 records electronically with the state. There are a couple of minor updates to the publication, which […]
The Alabama Department of Revenue recently published its quarterly interest rates for the fourth quarter of 2020. Under Section 40-1-44 of the Code of Alabama 1975, this interest rate is used to calculate interest on underpayments and over payments (where applicable) of taxes due or payable. The interest rate for the fourth quarter of 2020 […]
The IRS recently released its 2020 Publication 1586 which details reasonable cause regulations and requirements for missing and incorrect Name/TINs. Several changes were made to the document for this tax year, the most notable of which are detailed below. Under the Reasonable Cause section, language has been added stating, “mitigating factors or events beyond the filer’s control […]
The IRS recently released an updated version of Publication 1179 for tax year 2020. Publication 1179 provides general rules and specifications for printed substitute forms including Forms 1096, 1098, 1099, 5498, and certain other information returns. The highlight of the changes to this publication involve the addition of Form 1099-NEC, which was resurrected for reporting […]
The IRS recently published Notice 2020-54, which details guidance for reporting qualified sick leave and family leave wages paid to employees under the Families First Coronavirus Response Act (“FFCRA”). The FFCRA and the ensuing reporting guidance applies to employers with fewer than 500 employees who provide paid leave due to circumstances related to COVID-19. Further, […]
The IRS recently released an updated version of Publication 2108A, Online Taxpayer Identification Number (TIN) Program. This publication provides information and instructions relating to the IRS Online TIN matching program used by taxpayers to validate taxpayer identification numbers to avoid possible consequences like backup withholding and penalties. Publication 2108A remains largely the same as its […]
The IRS recently released revised instructions for Form 941 which is used by employers to report quarterly federal withholding. Several changes have been made to the instructions and form in response to COVID-19 and the passage of the CARES Act. As some of these changes were made prior to the end of the First Quarter […]
The IRS has released its draft Form 8809, “Application for Extension of Time to File Information Returns,” for tax year 2020. Form 8809 is an application for extension to file information returns with the IRS, it does not grant an extension to issue recipient copies. References to box 7 of the 1099-MISC, which reported non-employee […]
Through Notice 2020-35, the IRS further extended the due date for Form 5498 series records including Form 5498 (IRA Contribution Information), 5498-ESA (Coverdell ESA Contribution Information) and 5498-SA (HAS, Archer MSA, or Medicare Advantage MSA Information). The due date for filing these forms with the IRS and furnishing these forms to recipients has been extended to […]
The SSA recently released its 2020 W-2C Specifications. There were no changes to the specifications though there were updates to the total amounts applicable to Social Security Wage Base, Social Security Withheld, and the Maximum Social Security Wage base for 2020. To view the full specifications release, click here.
The SSA recently released its 2020 W-2 Specifications. There were no changes to the specifications though there were updates to the total amounts applicable to Social Security Wage Base, Social Security Withheld, and the Maximum Social Security Wage base for 2020. To view the full specifications release, click here.
The Maryland legislature recently passed the Budget Reconciliation and Financing Act of 2020 (SB 192) which in part significantly changes the information return reporting obligations of third-party settlement organizations (TPSOs). SB 192 requires TPSOs who must issue Form 1099-K to report payments made to their payees if the amount of the reportable payment meets or […]
The Maryland Comptroller’s Office recently issued a number of extensions for tax payments and reporting due to the COVID-19 pandemic, including employer withholding tax. For payments and tax returns due between February 2020 and May 2020, these reports and payments will now be due on July 15, 2020. Separate reports must be filed for each […]
Iowa Governor Kim Reynolds announced an Iowa Small Business Relief Program to assist the state’s small businesses impacted by the COVID-19 pandemic. This program offers small businesses relief grants and tax deferral of sales and/or withholding taxes due along with waiver of penalty and interest for retail sales and/or withholding taxes due on or after […]
In light of the COVID-19 pandemic the California Franchise Tax Board (“FTB”) has issued extensions for reporting and payment of certain tax types, which include withholding tax. For non-resident/non-wage withholding payments and reporting for the first two pay periods, the new due date for reporting and payment is now July 15, 2020. The third pay […]
New Mexico Taxation & Revenue recently published a bulletin describing withholding tax relief due to the COVID-19 pandemic. For withholding taxes due to be reported and paid between March 25, 2020 and July 25, 2020, taxpayers may report or pay without penalty no later than July 25, 2020. This includes those withholding payments and reports […]