Regulatory Analysis
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 […]
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) […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]