Regulatory Analysis
The IRS recently announced the implementation of provisions from P.L. 116-94, Division Q, which extends the applicability of Section 163(h)(3)(E) for tax years 2018 through 2020 to provide for the deductibility of mortgage insurance premiums (“MIP”) which are reported on Form 1098. More specifically, MIP aggregating in amounts of $600 or more received during a […]
The Vermont Department of Taxes has released updates to their WHT-436, Quarterly Withholding and Reconciliation and Health Care Contribution form, and their WHT-436 Instructions, Quarterly Withholding Reconciliation. WHT-436 Changes In part III, line 6 has been changed to an un-numbered checkbox, shifting lines 7-12 down one number. The HCC Premium per FTE Exemption, on line […]
New Jersey has updated its NJ Shared Responsibility Requirement page. See below for a detail of some of the important changes. Under the New Jersey Health Insurance Market Preservation Act (HIMPA), employers and providers of coverage must file with the Division of Taxation on or before March 31, 2020. The state has no plans for extensions […]
The California Employment Development Department has released a new version of the DE-4P, Withholding Certificate for Pension or Annuity Payments. This form is used to provide withholding information to withholding agents and account managers for distributions from pension or annuity payments. The only changes to the form occurred on Worksheet B. The following updates were […]
The New Mexico Taxation and Revenue Department recently updated Publication FYI-330, Income and Withholding Information Returns and Filing Methods 2019. This publication provides information on filing requirements for information and withholding returns, use of the Combined Federal/State Reporting System, and electronic specifications for filing information returns with the state. There are a few updates to […]
The IRS has recently provided supplementary instructions for 2019 1042-S forms. These supplemental instructions should be used for reporting in 1042-S forms for tax year 2019. There were two changes: Firstly for box 7c, withholding and reporting performed in the following year against a partner or beneficiary’s share designated for the prior year before March […]
Illinois enacted legislation creating a Cannabis Purchaser Excise Tax and permitting counties and municipalities to impose, by ordinance, a local retailers’ occupation tax on all persons engaged in the business of selling adult use cannabis at retail. CBD products, such as CBD oils, derived from industrial hemp that contain 0.3% or less of THC are […]
The Connecticut Department of Revenue Services recently released updated CT-W3, CT-945, and CT-1096 forms for the 2019 Tax Year. These updates primarily address the addition of the Federal 1099-K taxable income to Connecticut taxable income for TY 2019. A revised version of CT-941 was released for Tax Year 2020. To view any of these forms, click here.
New Jersey has released updated specifications for reporting W-2 information via electronic filing and also its 2020 Income Tax Withholding Instructions. See below for a detailed description of changes. Income Tax Withholding Instructions Modifications have been made to the rules for military spouses working in New Jersey New Jersey employers are now required to give Form […]
Idaho releases 2019 State Tax Commission Information Return 1099 E-Filing Guide. No changes were made to the Guide other than updating for the current tax year. (Rev. 11/26/19)
North Carolina has published an updated Income Tax Withholding Tables and Instructions for Employers (NC-30) booklet for TY 2020. See below for details on changes. The 4% mandatory withholding requirement has been applied to all personal services for non-wage compensation. Previously this only applied to non-resident contractors. Withholding needs to be taken out […]
Massachusetts has released a number of notices and publications, as detailed below. Tax Rate Massachusetts announced that effective as of January 1, 2020, the state income tax rate will drop from 5.05% to 5.0%, affecting withholding rates. For the news page, click here. View the full release here. Interest Rate In Technical Information Release 19-18, Massachusetts has announced […]
Pennsylvania has released updated versions of its W-2/1099 CSV reporting instructions and specifications and EFW-2/EFW-2C. The only change was that the effective date of the specifications has been changed to after January 21, 2020, after which time all files uploaded must reflect the changes in the handbook. To view the full W-2/1099 CSV instructions and specifications, click here. […]
The Illinois Department of Revenue recently released their Electronic Filing Specifications for Forms W-2 and W-2C, which provide general instructions and state-specific specifications for filing these forms with the state. The updates to these specifications revolve around the removal of the web upload option for filing electronically. All electronically filed W-2 records must be transmitted […]
Georgia has released its Employer’s Tax Guide, updated for TY 2020. Additionally it has released TY 2020 updated G-7M, G-1003, GA-V, and G-7Q forms, respectively the Quarterly Return for Monthly Payers, Income Statement Return, Withholding Payment Voucher, and the Georgia Quarterly Return for Quarterly Payers. Employer’s Tax Guide Link Applies tax laws as of January […]
Colorado has released a new publication, the Wage Withholding Tax Guide. With the release of this document, Colorado has incorporated the FYI #5 and FYI #6 into a single unitary tax withholding guide. Directions in the new publication have been edited for clarity and consistency but in terms of processes, thresholds, frequencies and other information, […]
West Virginia has issued a revised publication and form, TSD-436 and IT-103 (Requests For Waiver Of Electronic Filing And Payment Requirements and West Virginia Withholding Year End Reconciliation, respectively). The changes are outlined below. TSD-436 Language updated in the Background section explaining that for returns filed on or after January 1, 2019, any person required to […]
California Franchise Tax Board (FTB) Information Returns filing requirements updated. California no longer strictly following Federal guidelines. New requirements are: You need to file an information return with California if: The recipient is a California resident or part-year resident The source of a 1099 transaction was in California.