Regulatory Analysis
Minnesota recently updated Fact Sheet 2 (Submitting Form W-2 Information) and Fact Sheet 2A (Submitting Form 1099 Information) for TY 2024 reporting. The tax year has been updated throughout both documents. Other changes are editorial in nature and do not impact reporting compliance.
The District of Columbia (DC) recently released the 2024 Specifications for Electronic Filing of Forms W-2/W-2C. Under What’s New, the guide lists the changes made to the SSA EFW2 / EFW2C Publication for tax year 2024. DC continues to follow the SSA EFW2 / EFW2C format. Additionally, the guide has been updated with instructions for […]
Recently President Biden signed two bills into law that impact the reporting requirements and penalty provisions for employers and health insurance providers that provide minimum essential health coverage under the Patient Protection and Affordable Care Act. Key changes include: Employers and health insurance providers are only required to furnish 1095-B and 1095-C to covered individuals […]
Bulgaria has announced the phased implementation of mandatory SAF-T (Standard Audit File for Tax) reporting, as outlined in the State Budget Law for 2025, starting in January 2026. This initiative aims to enhance tax compliance and streamline data exchange between taxpayers and tax authorities. The implementation timeline is as follows: January 2026 – Large enterprises […]
The IRS recently released the 2024 Instructions for Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons). There are several impactful changes: E-file requirements. For most filers, the administrative exemption from the 1042 electronic filing requirement has expired. For 2024 1042 returns filed in 2025, electronic filing is required for 1) […]
The IRS recently released the 2024 Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons). Line 9 was updated to reflect the leap year. Section 4 of the form has been retitled to remove the phrase ‘dividend equivalent’ from the beginning (Payments by a Qualified Derivatives Dealer (QDD)). Tax year has […]
The IRS recently released the 2024 Instructions for Form 945 (Annual Return of Withheld Federal Income Tax). There are two notable changes. First, the IRS began accepting form 945-X electronically through the Modernized e-File (MeF). Second, the 945 due date for filers that paid all taxes on time will fall on February 10, 2025, two […]
The IRS recently released the 2024 940 Form and Instructions (Employer’s Annual Federal Unemployment (FUTA) Tax Return). There are two notable changes. First, the IRS began accepting amended form 940 electronically through the Modernized e-File (MeF). Amendments by paper will still be accepted. Second, the 940 due date for filers that paid all FUTA taxes […]
The Canada Revenue Agency (CRA) recently released the 2024 NR4 Publication (T4061 Non-Resident Tax Withholding, Remitting, and Reporting). There are several changes of note. When using income code 75 or 76 for First Home Savings Account (FHSA) payments to a beneficiary, report the deceased holder FHSA contract number in the payer or agent identification number […]
The Canada Revenue Agency (CRA) recently released the 2024 T5008 Publication (T4091: Return of Securities Transactions). There is one notable change for filers who use aggregate reporting. Previously, aggregate reporters filed one T5008 slip per payee per calendar year using code ‘1231’ in Box 14 for transactions involving identical securities. For 2024, filers that use […]
Canada Revenue Agency (CRA) recently released the 2024 T5 (Statement of Investment Income). There are several important changes related to the mid-year capital gains inclusion rate increase. For 2024, Box 34 has been added under ‘Other Information’ to report capital gains dividends realized from January 1, 2024 to June 24, 2024 (Period 1). The instructions […]
Canada Revenue Agency (CRA) recently released its 2024 T4A Publication (RC 4157 Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary). There are several updates of note: · The CRA will waive the requirement to file T4A for payers who are individuals and who contract the payee in a […]
Rhode Island has released a second version of its 2024 Withholding Filing Requirements guide. Rhode Island houses its W-2 and 1099 electronic specifications in the guide. There are several changes of note: · The W-2 electronic specifications have been updated. Rhode Island will now require the RW Employee Wage Record. · Electronic 1099 and W-2 […]
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 […]
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 […]
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 […]