Regulatory Analysis

The IRS recently released an updated version of Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(S). This publication provides information and procedures relating to backup withholding, including instructions on how payers and recipients must navigate the CP2100/2100A notification process. Most notably the publication was updated to include Form 1099-NEC by name: previously this form […]

New Mexico has released two new withholding forms and related instructions. Beginning July 1, 2021 form TRD-41414 is the new wage withholding tax return and form TRD-41409 is the new non-wage withholding tax return. These forms replace the prior CRS-1 semi-annual withholding return form. Where CRS-1 was previously used to report either wage or non-wage […]

Enacted by signature of the Governor on April 29, 2021 and effective July 1, 2021. Due to the cut-off date for the fall cycle, and the lack of a “transitional provision,” this bill will not change holders’ obligations for reporting in 2021. As previously highlighted, this RUUPA bill will replace the state’s existing law. The […]

The Michigan Department of Treasury recently published Revenue Administrative Bulletin 2021-5, which details the interest rate for underpayments and over payments for the period beginning on July 1, 2021 to December 31, 2021. The interest rate for this period remains unchanged from the first half of 2021, at an annual rate of 4.25%. To review […]

The IRS recently published Notice 2021-21 which extends a number of due dates as a form of relief pursuant to 26 U.S.C. 7508A(a). Due to the ongoing COVID-19 emergency the Secretary of Treasury has been granted the authority to provide relief in the form of extended due dates for certain returns and forms, including the […]

Virginia recently announced the interest rates for underpayments and overpayments of tax for the second quarter of 2021. Virginia bases it’s rates on the federal rates, holding their rates at 2% higher than the federal rates for over and underpayments. As the Federal rates for the second quarter have not changed, Virginia will maintain its […]

Missouri recently added three questions with answers to its Withholding Tax FAQ list. All three questions are regarding the revival of Form 1099-NEC. See the questions below: The first question asked whether the 1099-NEC needed a cover form like the MO-96 covered the 1099-MISC in previous years. The response is that no cover form is […]

Delaware recently released a new instruction sheet for Form W3 annual reconciliations. The instruction set gives box by box and line by line instructions on how to complete the W3 annual reconciliation form. In addition to instructions, the sheet gives the reminder that all employers required to file W-2s and 1099s electronically for federal purposes […]

North Dakota recently released the 2021 version of it’s Income Tax Withholding Guideline, the employer’s guide to withholding for the state. Few changes were made this year, most of which revolve around the addition of federal Form 1099-NEC. These are detailed below: • Under reportable payments, 1099-NEC reportable payments have been differentiated from 1099-MISC reportable […]

The New York State Department of Taxation and Finance recently published an updated version of Publication 69, Electronic Reporting of Quarterly Combined Wage & Withholding Tax Information. This publication provides guidance and electronic filing specifications for withholding tax information relative to certain wage information to the Department. While the electronic reporting specifications themselves remain unchanged […]

The Iowa Department of Revenue recently published an update to certain Administrative Rules relating to a variety of topics including filing W-2 and 1099 forms. In 2019 the Department of Revenue adopted an amendment to Iowa Administrative Code Chapter 46 that inadvertently moved the annual deadline for filing Verified Summary of Payment (VSP) Reports, W-2 […]

District of Columbia recently released its tax year 2020 Specifications for Electronically filing DC Health Care Information Returns. The revision date is listed as 1/15/2021. Several minor changes have been made along with some more impactful ones. The most notable of these changes are detailed below: • Added reminder that no format but pipe-delimited .txt […]

Arkansas recently released its 2021 Withholding Tax Employer’s Instructions, the booklet of information for Employers covering the general range of topics for employers withholding from wages and non-wage compensation. Most of the changes for tax year 2021 are formatting and grammatical in nature, but there are some changes that may affect employers. These changes are […]

The Ohio Department of Taxation recently announced that Form 1099-NEC is required if the form reports Ohio state withholding. Reporting must be done by scanning paper copies and submitting them via e-mail to the Department of Taxation at IncomeStatementsEWT@tax.state.oh.us with the proper identification because the current electronic filing system is not capable of processing electronically […]

Pennsylvania has announced that due to technical issues, it will be extending the filing deadline for forms W-2, 1099, and REV-1667 to February 5, 2021. The e-tides system has experienced significant technical difficulties with the high volume of users attempting to upload large volumes of information at the same time, resulting in the inability for […]

Based on prior year filing requirements relating to nonemployee compensation reporting, North Dakota will require Form 1099-NEC for tax year 2020 going forward. In prior years North Dakota required information returns if the record in question was subject to two conditions: the person resides, owns property, or carries on a trade or business in North […]

Indiana recently released updates to both its W-2 and WH-3 Guide and its W-2G and 1099 Guide which are the specifications for electronic filing. Few changes were made but the most important of these are listed below. Most notable is that all references to the RV record have been removed, and that Indiana states that […]

The California Franchise Tax Board (“FTB”) recently published its January 2021 issue of the Tax News bulletin which outlines certain tax and regulatory updates. In this bulletin the FTB announced a new filing requirement for Form 1099-NEC beginning in tax year 2020. Payers are required to report nonemployee compensation payments on Form 1099-NEC to the […]