Regulatory Analysis
In 2022, a Texas District Court held in Coppell v. Hegar and Round Rock v. Hegar that Texas failed to follow its own requirements in enacting Texas Tax Rule 3.334. In short, the court required the comptroller to re-amend or re-adopt the rule using proper Texas procedures. The Texas Comptroller then fulfilled the procedural requirements […]
Louisiana House Bill 10 of the Louisiana 2024 Third Extraordinary Session includes language to increase the Louisiana state level sales and use tax rate from 4.45% to 5%, effective January 1, 2025. The bill awaits the Governor’s signature. More information can be found here.
On November 26, 2024, the IRS released Notice 2024-85 (Revised Timeline Regarding Implementation of Amended Section 6050W(e)). The notice announces transitional relief for Third-Party Settlement Organization (TPSOs) from the 1099-K reporting threshold for tax year 2024 and 2025. For tax year 2024, the IRS will implement a $5,000 reporting threshold for TPSOs, without regard to […]
Arkansas recently published its 2024 Specifications for Filing Forms W-2/1099 Electronically. The publication’s revision date is November 8, 2024. The document details the state-specific additions to the Social Security Administration’s EFW2 format and the IRS Publication 1220 format. There were several editorial changes but no substantive changes to the specifications themselves, Despite this, some important […]
Starting January 1, California will increase its 911 surcharge rate from $0.30 to $0.41. More information can be found here.
Michigan PA 14 and 15 in 2023 created a tax exemption on certain firearm safety items from May 2024 through December 31, 2024. Michigan recently published a notice confirming the end of this tax exemption. Beginning January 1, 2025, all firearm safety items will be subject to the standard tax rate in Michigan.
West Virginia recently released its 2024 W-2 Specifications. There are several changes of note. First, a new instruction has been added for software companies and payroll service providers to submit a Letter of Intent to file withholding and payroll information returns electronically. The letter of intent can be accessed by emailing taxloi@wv.gov and must be […]
West Virginia recently released its 2024 1099 Specifications. There are several changes of note. First, a new instruction has been added for software companies and payroll service providers to submit a Letter of Intent to file withholding and payroll information returns electronically. The letter of intent can be accessed by emailing taxloi@wv.gov and must be […]
The Canadian Government has announced its intention to implement a two-month tax holiday from the Good and Service Tax and Harmonized Sales Tax (GTS/HST). The proposed holiday will apply to both the 5% GST applicable across Canada and the HST in the provinces of Ontario, Prince Edward Island, Nova Scotia, New Brunswick, and Newfoundland and […]
Maryland recently released the 2024 Maryland Employer Reporting of 1099 Instructions and Specifications. There are significant changes to the 1099 filing process, which can be attributed to the transition to ‘Maryland Tax Connect’ (MTC). MTC has replaced SFTP for filing most 1099 forms. Forms 1099-K and 1099-S must still be filed through SFTP. Filers of […]
Maryland recently released the 2024 Maryland Employer Reporting of W-2 Instructions and Specifications. There are substantial changes. A new portal, Maryland Tax Connect, has replaced BFile and SFTP for W-2 filing. Maryland Tax Connect has three options for filing W-2s. Maryland Tax Connect also supports electronic corrections for W-2C and MW508. Payroll providers and third […]
Canada Revenue Agency (CRA) recently released the 2024 T4A (Statement of Pension, Retirement, Annuity, and Other Income). The description for Box 134 has been updated. Box 134 will now be used to report First Home Savings Account payments to qualified donees, in addition to Tax-Free Savings Account (TFSA) payments. Previously, Box 134 only reported TFSA […]
Indiana recently released its 2024 W-2 and 1099 electronic filing specifications. The 1099 specifications have several notable changes. Form 1042-S will no longer be accepted via SFTP in a modified Publication 1220 format. A field for reporting state code has been added to the B Record for form W-2G. A new Appendix E (Country Codes) […]
Ohio recently released its 2024 W-2 Upload Specifications. Most notably, filers should be prepared to navigate a new and improved interface when filing 2024 information returns. Beginning December 9, 2024, ‘OH Tax eServices’ will become active on Ohio Business Gateway to be used for all employer withholding taxes. Taxpayers can log into their existing Ohio […]
Revenu Québec recently released the RL-1 (Employment and Other Income) for tax year 2024. Beginning January 1, 2024, employers must withhold a second Quebec Pension Plan (QPP) contribution from an employee’s pensionable salary or wages. There are several changes to the RL-1 to reflect this change. Box B (QPP Contribution) has been retitled Box B.A. A new field titled […]
Effective January 1, 2025, the Colorado prepaid wireless charge on retail sales of prepaid wireless telecommunication services will be adjusted to $2.09 for the 911 charge and $0.07 for the 988 charge.
Colorado imposes a $2.23 Daily Vehicle Rental Fee on motor vehicle rentals 30 days or less and certain car sharing rentals. As a part of the total fee amount, a new $3 congestion impact fee has been added as a component of the fee rate. The new total rate for the Colorado Daily Vehicle Rental […]
Massachusetts is providing a 60 day Tax Amnesty Program from November 1, 2024 to December 30, 2024. The Tax Amnesty Program will be open to individual and business taxpayers who meet certain eligibility requirements. Most tax types will be eligible, including sales/use tax. Eligible taxpayers will be able to file delinquent or amended returns, pay […]