Accounting and Consulting Group

Payroll security is a critical concern for professionals providing payroll services. Data theft attempts are on the rise, and attacks on payroll services have also increased. Check out these Tax Tips on keeping computer data safe. Also, share them with in-house payroll processors, tax compliance personnel, clients and partners. Create a recovery plan and report thefts immediately Create a recovery …

The new Tax Withholding Estimator tool offers self-employed individuals, workers, retirees and other taxpayers a more dynamic and user-friendly way to calculate the amount of income tax they want to have withheld from either wages or pension payments. And, after the calculations are done, the Tax Withholding Estimator automatically links to the appropriate withholding form. Please share these news releases …

Because of new wage and income reporting requirements, the IRS announced it would discontinue the Form W-2 Verification Code pilot for the 2019 tax year. Federal law now requires employers to submit Forms W-2 by January 31 each year, which helps the IRS combat fraud and identity theft and superseded the need for a verification code. The IRS expresses its …

As of October 1, 2019, Form 4419, Application for Filing Information Returns Electronically, is mandated to be electronically filed when requesting an original Transmitter Control Code to transmit information returns through the FIRE System. Form 4419 isn’t applicable when requesting an Affordable Care Act TCC. Find and submit an online, fill-in Form 4419 located within the FIRE System on IRS.gov. Submit a …

New form: Form 8809, Application for Extension of Time to File Information Returns New pubs: Pub 1141, General Rules and Specifications for Substitute Forms W-2 and W-3 Pub 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G Draft form: 2020 Form W-4, Employee’s Withholding Allowance Certificate (draft)

Connecticut’s tax collector is notifying nearly 10,000 business owners that they are eligible for waivers on penalties, which were assessed after they were late submitting estimated taxes for a new “pass-through entity” filing option the state established last year as a workaround to help some limit the impact of changes in federal tax law. The Connecticut Department of Revenue Services …

The IRS recently announced it is automatically waiving the estimated tax penalty for eligible taxpayers who already filed their 2018 federal income tax returns but did not claim the waiver. Many business owners, especially self-employed individuals who received income subject to withholding, would qualify for this relief. The waiver applies to any individual taxpayer who paid at least 80% of …

Truck drivers who have registered, or are required to register, a heavy highway vehicle with a taxable gross weight of 55,000 pounds or more must file Form 2290, Heavy Highway Vehicle Use Tax, and pay any tax due by the deadline. For most Form 2290 taxpayers, the deadline is Tuesday, Sept. 3, for vehicles used on the road in July. …

Effective July 2, 2019, the Taxpayer First Act added an extra method the IRS must use in determining the low-income certification threshold necessary to waive the application fee for an Offer in Compromise (OIC). Taxpayers can apply to be considered for an OIC if they can’t pay their full tax liabilities, or if doing so would create a financial hardship. …

Last week, the IRS detected this new scam about unsolicited emails from IRS imposters. The email subject line may vary, but recent examples use the phrase “Automatic Income Tax Reminder” or “Electronic Tax Return Reminder.” The emails have links that show an IRS.gov-like website with details pretending to be about the taxpayer’s refund, electronic return or tax account. The emails …