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IMRS Industry Issues Quarterly Report - September 2013

Issue Management Resolution System – Turning Issues into Answers

The Issue Management Resolution System captures, develops and responds to stakeholder issues. IMRS also identifies nationwide trends with reporting, filing and payment requirements that may indicate a need to change IRS processes or procedures. 

This report provides synopses of some of the issues raised by or of interest to our industry stakeholders. Stakeholders should forward significant issues about IRS policies, practices and issues to their Stakeholder Liaison Local Contacts.

IMRS 13-0001795 – Drop-in articles for small businesses

Issue: A stakeholder liaison requested drop-in articles with tax information for trade and business publications and websites.

Response: Drop-in articles are available for sharing with industry partners. The articles include information on:

  • Recordkeeping, including the types of receipts to keep
  • How to compute cost of goods sold
  • E-business and e-commerce, including recordkeeping for online sellers
  • Links to a comprehensive business income page and information on figuring net profit and loss

All articles contain other helpful resources for small businesses. Tax centers, tax topics and tax tips also contain helpful information. Search Stakeholder Liaison Local Contacts on IRS.gov for a local point of contact to get more information and obtain copies of drop-in articles.

IMRS 13-0001785: Voluntary Classification Settlement Program

Issue: The VCSP provides an opportunity for taxpayers to reclassify their workers as employees for employment tax purposes for future tax periods with partial relief from federal employment taxes. The Issue Management Resolution System collects questions about the program.

Response: Contact a local stakeholder liaison for questions about this program. Questions received are elevated for consideration; however, individual answers are not guaranteed. Stakeholder feedback and questions assist the IRS in creating outreach products and frequently asked questions on IRS.gov. Search VCSP on IRS.gov for more information about the program.

IMRS Local Issue 2149 – Practitioner’s suggestion for reducing Form W-2C transmittals

Issue: A practitioner suggested that the IRS require Form W-2C filers to create laser Forms W-2C and W-3C. This could save the IRS money because laser printers are relatively inexpensive and a standard piece of equipment for most businesses.

Resolution: Because these forms are processed at the Social Security Administration (SSA) on optical scanning equipment requiring red drop-out ink on the form, the IRS cannot offer a laser-printed option at this time. The SSA strongly suggests that employers report Forms W-3C and W-2C Copy A electronically instead of on paper. The SSA provides free e-filing options on its website:

W-2 Online - Use fill-in forms to create, save, print and submit up to 25 Forms W-2C at a time to the SSA.

File Upload - Upload wage files to the SSA using payroll or tax software that formats files according to SSA's specifications.

For more information, search Business Services Online on SocialSecurity.gov.

Page Last Reviewed or Updated: 01-Aug-2014