Regulatory Analysis

Posted December 3, 2024 by Kellianne Munichiello
IRS Establishes $5,000 Transitional TPSO Threshold for 1099-K for 2024, $2,500 for 2025, Waives Backup Withholding Penalties for TPSOs for 2024

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 […]

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Posted December 3, 2024 by Kellianne Munichiello
West Virginia Releases 2024 1099 Specifications

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 […]

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Posted December 3, 2024 by Kellianne Munichiello
Maryland Releases 2024 1099 Specifications

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 […]

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Posted November 12, 2024 by Kellianne Munichiello
Maryland Releases 2024 W-2 Specifications

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 […]

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Posted November 12, 2024 by Kellianne Munichiello
Canada Releases 2024 T4A Form

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 […]

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Posted November 12, 2024 by Kellianne Munichiello
Indiana Releases 2024 W-2 and 1099 Electronic Filing Specifications

Indiana recently released its 2024 W-2 and 1099 electronic filing specifications. The 1099 specifications have several notable changes. Form 1042-S will no longer be accepted via SFTP in a modified Publication 1220 format. A field for reporting state code has been added to the B Record for form W-2G. A new Appendix E (Country Codes) […]

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Posted November 12, 2024 by Kellianne Munichiello
Ohio Releases 2024 W-2 Specifications; Employer Withholding Moving to OH Tax eServices

Ohio recently released its 2024 W-2 Upload Specifications. Most notably, filers should be prepared to navigate a new and improved interface when filing 2024 information returns. Beginning December 9, 2024, ‘OH Tax eServices’ will become active on Ohio Business Gateway to be used for all employer withholding taxes. Taxpayers can log into their existing Ohio […]

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Posted November 12, 2024 by Kellianne Munichiello
Revenue Quebec Releases RL-1 for 2024

Revenu Québec recently released the RL-1 (Employment and Other Income) for tax year 2024. Beginning January 1, 2024, employers must withhold a second Quebec Pension Plan (QPP) contribution from an employee’s pensionable salary or wages. There are several changes to the RL-1 to reflect this change. Box B (QPP Contribution) has been retitled Box B.A. A new field titled […]

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Posted October 9, 2024 by Kellianne Munichiello
Revenu Québec Releases RL-3 for 2024

Revenu Québec recently released the RL-3 (Investment Income) for tax year 2024 through Revenu Québec’s Partner program, which provides early access to forms for product developers and other tax professionals. On Copy 1 of the RL-3, the revision date has been updated. On Copy 2, there are several changes related to the capital gains inclusion rate […]

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Posted October 9, 2024 by Kellianne Munichiello
Missouri Releases 2024 1099 Electronic Filing Specifications

Missouri recently released the 2024 Employer Reporting of 1099 Instructions and Specifications Handbook. The tax year has been updated throughout. The CF/SF guidance has been updated to clarify that only filers who have never been approved to participate in CFS (through IRIS or FIRE) are required to submit a copy of the IRS approval letter […]

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Posted October 9, 2024 by Robert Beck
IRS Releases Update to Publication 1220

The IRS recently updated its Publication 1220. The first version for 2024 was released last week on September 19, 2024. This week, an updated version was released with two changes to the document. A previously omitted section for the Zip Code field positions for the “B” Record of Form 1099-LTC was added, and some new […]

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Posted October 9, 2024 by Jesse Rooney
IRS Releases E-Filing Direction for Affordable Care Act Returns

 The IRS has revised Publication 5165, “Guide for Electronically Filing Affordable Care Act (ACA) Information Returns.”  The document provides guidance on electronic filing of ACA returns to the IRS.  In addition to expected updates to years referenced, there are a number of changes.  Additional direction on retrieving acknowledgements has been provided.  These step-by-step instructions detail […]

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Posted September 17, 2024 by Kellianne Munichiello
Mississippi Lowers E-Filing Threshold for 1099 and W-2

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 […]

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Posted September 17, 2024 by Kellianne Munichiello
IRS Updates 2024 Instructions for Forms 1099-R and 5498

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 […]

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Posted September 17, 2024 by Kellianne Munichiello
IRS Re-releases 2024 5498

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 […]

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Posted September 17, 2024 by Robert Beck
IRS Releases 2024 Publication 1220

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 […]

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Posted August 16, 2024 by Robert Beck
Maine Releases 2024 Electronic File Specifications for Form W-2

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 […]

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Posted August 14, 2024 by Kellianne Munichiello
Alabama Expands Overtime Exemption

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 […]

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