Regulatory Analysis
The IRS Recently released an update to Form 945-A, the Annual Record of Federal Tax Liability for the first time since December 2020 and its respective instructions which were last updated in 2022. This form is used for recording tax liability throughout the months of a year. Most of the form changes were removal of […]
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 […]
The IRS recently published the 2025 version of Form 1042-S and its accompanying instructions. Form 1042-S is used to report income earned by non-resident aliens and withholding applied to said income. NOTE: This is the version of the form and instructions applicable to tax year 2025 reporting, NOT an update to the 2024 version of […]
The City of Napaskiak has completed the process to join the Alaska Remote Sellers Sales Tax Commission (ARSSTC). Sellers must begin collection on 2/1/2025 and forms for filing will be updated to include Napaskiak on 3/1/2025.
Montana recently released the 2024 Electronic Filing Specifications for 1099 and W-2. For W-2, Montana conforms to the Social Security Administration’s EFW2 Publication (Specifications for Filing Forms W-2 Electronically). For 1099 forms, Montana conforms to the IRS Publication 1220 Specifications (Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G). Montana’s […]
New Jersey recently released the 2024 NJ-EFW2 (W-2 Electronic Filing Specifications). New Jersey conforms to the Social Security Administration’s EFW2 Specifications, except for the RS Record. New Jersey requires a modified RS Record. Tax year and revision date has been updated throughout the specifications. There are no other changes. The 2024 NJ-EFW2 can be found […]
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 […]
Wisconsin recently updated Publication 172 (Annual W-2, W-2C, 1099-R, 1099-MISC, 1099-NEC, 1099-K, and W-2G) Electronic Reporting. Notably, Wisconsin has indicated that it will accept 1099 records transmitted using the new federal Information Return Intake System (IRIS) XML format for tax year 2024 and beyond. IRIS formatted files can be submitted using secure file transfer protocol […]
Louisiana has passed HB8 and HB10. Key changes in HB8 are an expansion of the types of digital products subject to sales and use tax, and elimination of the 1% rate reduction for certain prepaid wireless products. HB10 most notably increases the state sales and use tax rate to 5.0%, as mentioned in our prior […]
Beginning January 1, 2025, Illinois will require retailers with a physical presence in Illinois to collect destination-based retailers’ occupation tax on sales from out-of-state locations to Illinois customers. Previously, these retailers were obligated to collect only Illinois use tax on these sales. More information can be found here.
Pursuant to P.A. 103-592, beginning January 1, 2025, rentals or leases of tangible personal property are subject to Illinois’ Sales and Use Tax laws. This change does not apply to motor vehicles, watercraft, or aircraft that are required to be titled or registered with an agency of the State of Illinois. More information can be […]
Beginning January 1, 2025, mattress retailers must collect a $22.50 stewardship assessment on each mattress or box spring sold to customers in Oregon. The stewardship assessment will be used to fund a statewide mattress recycling program. More information on the assessment can be found here. Activity
Effective January 1, 2025, the mattress recycling fee collected on the sale of all mattresses and foundations sold to Connecticut residents will increase to $16.00 per unit sold. Additional information can be found here.
The Colorado Department of Revenue published local sales and use tax changes effective January 1, 2025. Such changes include rate increases for specific state and self administered locals. Elimination of of the state exemption for certain medium and heavy-duty vehicles, engines, or motors. As well as, certain locals adjusting to state or self administration for […]
Effective January 1, 2025, Monument, Colorado has approved Ordinance No. 22-2024,providing for self-administered collection for sales and use tax, as well as adopting certain exemptions. Previously, the home-rule local tax collection was administered by the state with limited optional exemptions adopted. Further information may be found here.