Employer appropriately withheld taxes from employee’s wages
An employer appropriately withheld taxes from an employee’s wages and paid the wages to the IRS because the IRS directed the employer to do so. The pro se employee’s claim to have his employer honor...
View ArticleValue of tuition waiver benefit was income
An individual was required to include in gross income the value of a tuition waiver benefit received during the tax year at issue. The taxpayer received the tuition waiver benefit for his son from a...
View ArticleAlabama amnesty begins July 1
The 2018 Alabama tax amnesty application period opens on July 1, 2018 (see Payroll Management Guide Report Letter 1514/2547, dated March 13, 2018). It runs through September 30, 2018. The Department of...
View ArticleIRS to bring back aggregation for information return filing
The IRS has issued proposed regulations amending the rules for determining whether information returns must be filed using magnetic media (electronically). The proposed regulations would require that...
View ArticleLaw change affects moving, mileage and travel expenses
The Internal Revenue Service (IRS) today provided information to taxpayers and employers about changes from the Tax Cuts and Jobs Act (P.L. 115-97) that affect: move-related vehicle expenses;...
View ArticleIRS issues guidance on extended time for levy challenges
Individuals and businesses have additional time to file an administrative claim or to bring a civil action for wrongful levy or seizure, according to the IRS. An IRS levy permits the legal seizure and...
View ArticleIRS updates Modernized e-File testing specifications
The IRS has updated the Modernized e-File (MeF) testing specifications. The guidance contains general and program specific testing information for use in completing the Assurance Testing System (ATS)...
View ArticleIowa Governor signs tax reform bill
Iowa Governor Kim Reynolds signed a tax reform bill into law on May 30. 2018 personal income tax changes. Changes that affect the 2018 tax year include: the earned income tax credit would be tied to...
View ArticleNew Mexico issues revised 2018 withholding tables
New Mexico has issued withholding tables for wages paid on and after January 1, 2018. The tables were revised due to the changes in federal tax law. State income tax liability was not reduced based on...
View ArticleIRS addresses claims for adjustments made after calendar year
An employer may file a Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, after the calendar year end depending on whether the employer discovered the withholding error...
View ArticleIRS issues 2019 draft Form W-4
The IRS has issued a 2019 draft of Form W-4 plus instructions. Early release drafts are at IRS.gov/DraftForms, and may remain there even after the final release is posted at IRS.gov/LatestForms....
View ArticleCalifornia “ABC test” expands definition of employee
Under both California and federal law, whether an individual should properly be classified as an employee or an independent contractor has considerable significance for workers, businesses, and the...
View ArticleNV Sup. Ct. defines “health benefits” for minimum wages
The Supreme Court of Nevada has held that state law requires an employer who pays one dollar per hour less in wages to provide a benefit in the form of health insurance at least equivalent to the one...
View ArticleInterest rates remain the same in the third quarter of 2018
The IRS has announced that interest rates will remain the same for the calendar quarter beginning July 1, 2018. The interest rates will be 5% for overpayments (4% in the case of a corporation) and...
View ArticleIRS urges users to renew ITINs now
With more than 2 million Individual Taxpayer Identification Numbers (ITINs) set to expire at the end of 2018, the IRS today urged affected taxpayers to submit their renewal applications soon to beat...
View ArticleSSA announces new matching program with Office of Child Support Enforcement
In accordance with the provisions of the Privacy Act, the SSA has announced a new matching program with the United States Department of Health and Human Services (HHS), Office of Child Support...
View ArticleSeattle repeals head tax on big business
The Seattle City Council has repealed the $275 per employee head tax that it just passed in May. Under the previous ordinance, the annual tax amount was $275 per full-time equivalent employee in the...
View ArticleDOJ will not defend constitutionality of ACA’s individual mandate
In a letter to Congressional leaders, Attorney General Jeff Sessions has indicated that the Department of Justice will not defend the constitutionality of the Affordable Care Act’s individual mandate...
View ArticleUSCIS has a new website: E-Verify.gov
U.S. Citizenship and Immigration Services (USCIS) is reminding employers of the new website, E-Verify.gov. It is the authoritative source for information on electronic employment eligibility...
View ArticleD.C. voters approve raising the minimum wage for tipped workers
District of Columbia voters have approved raising the minimum wage for tipped workers. The measure eliminates the tipped minimum wage in D.C. by increasing the wage for tipped employees until it is...
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