Regulatory Analysis

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Posted October 24, 2020 by Paul Ogawa
Maryland Publishes Updated W-2 and 1099 Electronic Reporting Specifications

The Maryland Comptroller’s Office recently published updated electronic reporting specifications for W-2 and 1099 reports. These specifications and instructions are used by taxpayers to format and file information returns electronically. While the specifications remain largely the same as tax year 2019 for both types of information returns, there were minor updates made to each publication […]

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Posted October 24, 2020 by Paul Ogawa
Indiana Publishes Electronic Reporting Specifications for 1099 and W-2G Forms

The Indiana Department of Revenue recently published an updated set of electronic reporting specifications for 1099 and W-2G forms. These specifications are used to format electronic records for submission to the state. The updates to the publication include adding layout tables for the specifications and adding Code “NE” for 1099-NEC reporting. Note that Indiana utilizes […]

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Posted October 24, 2020 by Paul Ogawa
Delaware to Require 1099-NEC Reporting for TY 2020

The Delaware Department of Revenue has announced a requirement to file Form 1099-NEC for TY 2020. Through a FAQ published on their website, the 1099-NEC will be due on February 1, 2021 and will be required when the form is issued to a Delaware resident (regardless of where the services were performed) or to non-residents […]

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Posted October 24, 2020 by Paul Ogawa
IRS Provides Final Regulations on Income Tax Withholding on Certain Periodic Retirement & Annuity Payments

The IRS recently issued final regulations relating to the withholding rate on certain periodic retirement and annuity payments. This change was initiated by Section 3405(a)(4) of the Tax Cuts and Jobs Act (“TCJA”) and in part replaces the default rate for withholding on periodic payments under Section 3405(a) of the Code. Originally based on treating […]

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Posted October 24, 2020 by Paul Ogawa
North Carolina to Require 1099-NEC Reporting for TY 2020

The North Carolina Department of Revenue recently published an important notice relating to information returns due for TY 2020: specifically, information relating to Forms 1099-NEC and 1099-MISC. First, Form 1099-NEC will now be required for TY 2020 if the statement reports North Carolina income tax withheld. These must be filed with the department as a […]

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Posted October 24, 2020 by Robert Beck
Kentucky Releases 2020 Specifications for Electronic Submission of 1099 and W2G Forms and Will Require 1099-NEC Reporting for TY 2020

Kentucky recently released its 2020 Specifications for Electronic Submission of 1099 and W2G forms, adding specification details for filing forms 1099-NEC with the state. These specifications detail how to electronically submit forms 1099 and W2G to the state of Kentucky including the record formats. The document was updated with dates for the 2020 tax year. […]

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Posted October 14, 2020 by Paul Ogawa
Arizona to Require 1099-NEC Reporting for TY 2020

Leading up to the tax year 2020 filing season, Arizona has confirmed via e-mail that they will require 1099-NEC filing with their Department of Revenue. Presently Publication 701 indicates that all 1099s reporting Arizona income tax withheld are required for state reporting purposes. Further, Sovos has confirmed with the Department of Revenue that Form 1099-NEC will be […]

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Posted October 14, 2020 by Paul Ogawa
Iowa Publishes Updated Electronic Reporting Specifications for Information Returns

The Iowa Department of Revenue recently published an updated version of Publication 44-082, Electronic Reporting of Wage and Tax Statements and Information Returns. This publication provides instructions, information, and specifications for submitting W-2 and 1099 records to the Department electronically. Primarily the updates to these specifications and instructions involves the acceptance of Form 1099-NEC through […]

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Posted October 6, 2020 by Jesse Rooney
IRS States Forgiveness of Payroll Protection Program (PPP) Loans May Not Require Form 1099-C

The Internal Revenue Service has provided guidance on whether forgiven Payroll Protection Program (PPP) loans require the issuance of a 1099-C, stating that Form 1099-C should not be filed where loans are forgiven under the CARES Act.   The Payroll Protection Program issued forgivable loans to employers to encourage employee retention during 2020; these PPP loans […]

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Posted October 6, 2020 by Paul Ogawa
Indiana Publishes Updated W-2 & WH-3 Filing Requirements Booklet

The Indiana Department of Revenue has published their updated W-2 and WH-3 Filing Requirements Booklet for tax year 2020. This booklet contains instructions and specifications for filing wage records (W-2) electronically with the state. There are a few minor changes to this publication, which are as follows: All references to the INtax filing portal were […]

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Posted October 6, 2020 by Paul Ogawa
Kentucky Publishes Updated Electronic Specifications for W-2 Filing

The Kentucky Department of Revenue recently published an updated version of their Specifications for Electronic Submission of Annual Wage and Tax Information via Electronic Media or Web for Year 2020. This publication provides instructions and specifications for filing W-2 records electronically with the state. There are a couple of minor updates to the publication, which […]

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Posted September 11, 2020 by Paul Ogawa
Alabama Publishes Interest Rate for Q4 2020

The Alabama Department of Revenue recently published its quarterly interest rates for the fourth quarter of 2020. Under Section 40-1-44 of the Code of Alabama 1975, this interest rate is used to calculate interest on underpayments and over payments (where applicable) of taxes due or payable. The interest rate for the fourth quarter of 2020 […]

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Posted September 11, 2020 by Charles Maniace
SST and CSP’s Ink New 3 Year Contract

On August 31, 2020, the 24 member states of the Streamlined Sales Tax Governing Board met in special session to consider a proposed new contract with those tax technology companies holding the designation of Certified Service Provider (CSP’s), including Sovos. The proposed contract was voted on favorably, with 23 states voting in favor and 1 […]

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Posted August 11, 2020 by Robert Beck
IRS Releases 2020 Publication 1586

The IRS recently released its 2020 Publication 1586 which details reasonable cause regulations and requirements for missing and incorrect Name/TINs. Several changes were made to the document for this tax year, the most notable of which are detailed below. Under the Reasonable Cause section, language has been added stating, “mitigating factors or events beyond the filer’s control […]

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Posted August 5, 2020 by Ramón Frias
Puerto Rico Allows Cash-Based Sales Tax Compliance for Construction Businesses

The Puerto Rico Treasury (Hacienda) released Administrative Determination 20-19 allowing certain businesses to report and pay sales tax, using the cash method. Specifically, those taxpayers with 80% or more of annual revenue stemming from construction activities (as measured over the last 3 years) will now be able to report and remit sales tax based on […]

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Posted August 5, 2020 by Alex Koral
Louisiana Publishes Sales Tax Guidance for Direct Wine Shippers

The Louisiana Department of Revenue recently issued a notice regarding the application of new economic nexus rules to Direct Wine Shippers. Under the state’s existing direct shipping laws, any licensed winery, wholesaler, or retailer shipping wine into the state is required to collect and remit only the state tax. However, now any Direct Wine Shipper […]

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Posted July 21, 2020 by Paul Ogawa
IRS Releases Publication 1179 for TY 2020

The IRS recently released an updated version of Publication 1179 for tax year 2020. Publication 1179 provides general rules and specifications for printed substitute forms including Forms 1096, 1098, 1099, 5498, and certain other information returns. The highlight of the changes to this publication involve the addition of Form 1099-NEC, which was resurrected for reporting […]

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Posted July 14, 2020 by Victor Duarte
Spain: New version of the SII will be required from January 2021

The Immediate Supply of Information (SII) version 1.1 has been updated to version 1.1-Bis. The changes will be effective from January 1, 2021. The Spanish tax administration, the AEAT, has introduced new fields required for sales under the consignment of goods regime. The ledger of invoices issued, and the ledger of invoices received are also affected […]

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