Regulatory Analysis
New Jersey recently enacted S-721. This law provides an exemption for the sale of certain investment metal bullion and coins and is effective starting January 1, 2025.
Beginning with tax year 2024 returns filed in 2025, Mississippi lowered its electronic filing threshold for filing 1099 and W-2 to 10 or more returns. Previously, Mississippi applied a 25 or more form electronic filing threshold. Mississippi has not yet updated its guidance to reflect this change. The penalty for failure to file electronically when required […]
The IRS recently updated the Instructions for Forms 1099-R and 5498 to reflect that the 10% tax on early distributions does not apply to distributions for emergency personal expenses, terminally ill individuals, and domestic abuse victims. For Form 1099-R, distribution code 1 should not be used in Box 7 to report these types of early […]
The IRS recently re-released the 2024 5498 (IRA Contribution Information). The instructions for Box 14a and Box 14b were updated to reflect that the 10% tax on early distributions does not apply to distributions for emergency personal expenses, terminally ill individuals, and domestic abuse victims. Repayments made after 60 days for these early distribution types […]
The IRS recently released its 2024 Publication 1220. This publication contains the filing specifications for the FIRE system to file forms of the 1097, 1098, 1099, 3921, 3922, 5498, and W-2G series. This year, most changes to the publication were editorial in nature, including updates to the year of the document throughout and minor changes […]
Alabama will exempt honeybees from state sales and use tax starting October 1. The exemption will also apply to honeybee “inputs” and “byproducts”. The exemption will not apply to local taxes, and is set to expire on September 30, 2029.
Alabama will exempt hearing aids from state sales and use tax starting October 1. The exemption will not apply to local taxes, and is set to expire September 30, 2029.
The City of Mekoryuk has completed the process to join the Alaska Remote Sellers Sales Tax Commission (ARSSTC). Sellers must begin collection on 10/1/2024 and forms for filing will be updated to include Mekoryuk on 11/1/2024.
Maine recently released its 2024 Electronic File Specifications for Form W-2. The specifications allow business filers to format their W-2 bulk files for upload and filing with Maine Revenue Services (MRS) on the new Maine Tax Portal (MTP). There were several non-substantive updates to the document including some rearranging of sections and editorial changes and […]
Illinois Governor J.B. Pritzker signed House Bill 3144. In this legislation, Illinois eliminated its 1% grocery tax. However, despite eliminating the tax at the state level, Illinois will allow local authorities to impose their own grocery taxes. These changes will take effect January 1, 2026.
Alabama recently expanded the types of overtime that qualify for an exemption from personal income taxes and withholding. From January 1, 2024 to September 30, 2024, overtime compensation is exempt from Alabama income tax and withholding if it is paid to full-time hourly employees for working more than 40 hours in a week. Beginning October 1, 2024 […]
The IRS recently released its 2024 Publication 1141, the General Rules and Specifications for Substitute Forms W-2 and W-3. Publication 1141 is generally released on an annual basis and gives the requirements of the IRS and the SSA regarding preparation and use of substitute forms for Form W-2 and W-3. Only a few changes were […]
The IRS recently released the 2024 Publication 1179 (General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns). Filers should note that the IRS is removing filer copies and instructions from information returns, as evidenced by many 2024 versions of the 1099 series forms. Additionally, the IRS added an […]
New York State recently announced several upcoming changes to their withholding tax reporting coming in March of 2025. In an effort to reduce errors and increase compliance for employer reporting of employee information, the NYS Tax Department has instituted a streamlining program for withholding tax and wage reporting for forms and web file applications. The […]
Starting September 1, 2024, Minnesota will impose a prepaid wireless 988 fee of $0.12 per transaction for prepaid wireless telecommunication services. This fee will be collected along with the previously established E911 and Telecommunications Access Minnesota (TAM) fees, for a combined $0.95 per transaction for prepaid wireless telecommunication services.
California’s Employment Development Department (EDD) has announced available extensions for filing state payroll records and depositing state payroll taxes for counties affected by disasters. Following Gov. Newsom’s proclamation ending several states of emergency, the EDD has announced those in affected counties may request two-month extensions for filing and payment. The affected counties include Butte, Los […]
The Social Security Administration (SSA) recently released the 2024 versions of the EFW2 (Specifications for Filing Forms W-2 Electronically) and EFW2C (Specifications for Filing Forms W-2c Electronically). Most notably, both specifications include new fields for reporting Medicaid waiver payments that are excluded from gross income. These payments are reported in Box 12 under Code II […]
South Carolina recently updated publication WH-405, its specifications for the state’s batch filing program for quarterly tax returns. This is the first update to the publication since August of 2021. While the specifications themselves remain unchanged, the document contains added information about how to file using the MyDORWAY system rather than the GoAnywhere system which […]