Regulatory Analysis
The Puerto Rico Hacienda recently released Forms 499R-2 and 499R-2C for Tax Year 2018. These forms are the Puerto Rico equivalent of the W-2 and W-2c (respectively), and must be filed with the Hacienda and the Social Security Administration by every employer that has paid wages with income tax withheld for Puerto Rico (or to […]
The IRS has recently revised Publication 1179, “General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns.” The document details the format and specifications for printing various tax information return forms to be sent to the IRS and recipients. The What’s New for the revision notes the following: Copies […]
The Pennsylvania Department of Revenue has revised two of its withholding publications. The General Information & Specifications for W-2 and PA W-3 Quarterly Filing has one minor update: It now provides the web address for e-TIDES: www.etides.state.pa.us The Starting a Business in Pennsylvania Guide has some additional information about entrepreneurial assistance to answer questions about doing business in the state. […]
Indiana's Department of Revenue recently updated Departmental Notice #1, How to Compute Withholding for State and County Income Tax. The Notice informs filers that effective January 1, 2018, certain professional team members and race team members are subject to county tax. Income Tax Information Bulletin # 88 and Commissioner's Directive #51 can provide further information. The Notice […]
Maine Revenue Services has updated some forms and instructions relevant to withholding. Form 941BN-ME, which is completed to report a change in your withholding account, contact information or to cancel your withholding account, is now exclusively used for income tax withholding accounts; previously, it was also used for unemployment contributions accounts. There is no update […]
The Missouri Department of Revenue recently released an updated version of Publication 4282, Employer’s Tax Guide. This Guide provides instructions and information on filing and remitting withholding tax to the Missouri Department of Revenue, along with electronic specifications for those filing their reports electronically. There are a few updates to this version of the publication, […]
The Virginia Department of Taxation recently published Tax Bulletin 18-5, which details the interest rate for certain tax types. This includes the underpayment and overpayment rates for unpaid taxes or refunds, respectively. The rate for the fourth quarter of 2018 remains unchanged at 7% for both underpayments and overpayments. To review this Tax Bulletin in […]
The IRS recently released an updated version of Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs. This publication details the information related to penalty notices issued by the IRS (Notice 972CG), the procedure for addressing such notices, and the penalties themselves. There are a number of updates to the content of […]
The South Carolina Department of Revenue recently released SC Information Letter #18-11, which outlines the interest rates applied to underpayments and overpayments of taxes paid to the Department. The applicable interest rate of 5% carries over from the previous quarter, and will persist through December 31, 2018. To review this Information Letter in its entirety, […]
The West Virginia State Tax Department has updated Form WV-EFT-WR, the Electronic Filing and Payment Waiver Request. The form was last updated in 2014. The updated form requires more information from the taxpayer and includes clearer instructions both on form submission as well as clarifies the meaning of “undue hardship.” Taxpayers must prove undue hardship […]
The West Virginia State Tax Department has added a new publication, “Requests for Waiver of Electronic Filing and Payment Requirements.” This publication is retroactively effective to January 1, 2018 and applies to returns and payments for tax periods beginning on or after that date. The instructions provide a clear definition of the term “undue hardship” […]
The IRS has updated Form 5165, “Guide for Electronically Filing Affordable Care Act (ACA) Information Returns for Software Developers and Transmitters,” for Processing Year 2019. The following changes have been made: More information has been provided regarding the creation of an e-Services account. Additionally, there is a 2-factor authentication process. The List of Authorized Certificate […]
The Kentucky Department of Revenue has released Form 42A806-CD, Transmitter Report for CD Submission of Electronic Files in EFW2 or Pub 1220 Format. For Tax Years 2018 onward, filers submitting magnetic media reports to Kentucky must submit their media with Form 42A806-CD. The form requires the following information: Withholding account name. Withholding account number. Tax Year […]
The Canada Revenue Agency recently released the TY 2018 version of Form NR-4, Statement of Amounts Paid or Credited to Non-Residents of Canada. This form is filed by Canadian payers and withholding agents who make payments to non-residents of Canada for income such as interest, dividends, rents, royalties, pensions, and acting services in a film […]
The Canada Revenue Agency (CRA) has released Form T4A for Tax Year 2018. Form T4A is used to report pension, retirement, annuity, and other income payments and distributions to the CRA. While the form itself has not changed, there is one revision to the box description language on page 2 of the form. Box 16 […]
The Puerto Rican Treasury has released the 2018 Form 480.7A, Informative Return – Mortgage Interest Under the “Description” column, Puerto Rico has added a box for “Physical Address of the Property Subject to Loan,” including the Zip Code of that property. The instructions for this box provide: Enter the physical address of the property that guarantees […]
The Kentucky Department of Revenue has published the “2018 Specifications for Electronic Submission of 1099B, 1099DIV, 1099G, 1099INT, 1099K, 1099MISC, 1099OID, 1099R and W2G.” The DOR continues to use Publication 1220 formatting for all forms, with state defined fields in the B record. The DOR announces that they are no longer accepting paper copies of […]
The New Mexico Taxation and Revenue Department has updated FYI-107, “An Individual’s Guide to New Mexico Withholding Tax.” There are no substantive changes. To view the withholding guide in full, please follow the link.