News for Federal, State, and Local Governments

 

The Federal, State and Local Governments News is a periodic newsletter with information for federal tax matters for all types of government entities.

Subscribe to future editions

Expand/Collapse All

2021

Election Workers Webinar

The Tax Exempt and Government Entities Division would like to invite you to register to watch the free webinar on Reporting Election Workers Earnings on June 24, 2021 at 1:00 p.m. (ET). This webinar explains which workers should be treated as election workers and when taxes should be withheld from wages. It will also cover what should be included in earnings.

For more information, see Webinars for Tax Exempt & Government Entities.

Submit Forms 2848 and 8821 Online

Did you know you can now electronically sign third-party authorization Form 2848, Power of Attorney, and Form 8821, Tax Information Authorization?

With the new tool,  Submit Forms 2848 and 8821 Online , tax professionals can now upload the forms directly to the IRS.

For details, see IRS News Release or Fact Sheet 2021-1.

Form W-2/SSN Data Theft: Information for Businesses and Payroll Service Providers

The Tax Exempt and Government Entities Division would like to alert businesses and payroll service providers to a new email scam. This email scam uses a corporate officer's name to request employee Forms W-2 from company payroll or human resources departments. The email is sent to an employee in the payroll or human resources departments requesting a list of all employees and their Forms W-2. See the full article; Form W-2/SSN Date Theft: Information for Businesses and Payroll Services Providers, for steps to take in contacting the IRS if businesses and payroll service professionals received the email and/or lost data to this scam.

Worker Classification (Independent Contractors vs. Employees)

Are your payees independent contractors or are they employees? Before you can determine how to treat payments for services, you must first know the business relationship between you and the person performing the services.

For more information, see Worker Classification Video or Independent Contractor (Self-Employed) or Employee?

Help Us Improve IRS.gov

We want to make it easier for you to use our website by improving how it's organized.

Tell us how you want to find the information you need. Be a part of our study.

Background and Research Goals

Our goal with this study is to learn how people like you think about the things you need to do on IRS.gov – how you sort different tasks or topics into groups, and what you would call those groups.

By joining this study, you'll be helping us improve the site's navigation by putting content where most people expect it to be. Your time is precious – and we want to make sure that when you go to IRS.gov, you can do what you need to quickly and easily.

Find Us on Social Media

The IRS uses social media to share federal, state and local government information. This includes tax changes, scam alerts, initiatives, tax products and services, and more.

IRS social media resources include:

Subscribe to the platform that best fits your needs.

The Tax Exempt and Government Entities Division would like to invite you to register to watch the free webinar on Reporting Election Workers Earnings on June 24, 2021 at 1:00 p.m. (ET).

This webinar is designed to explain which workers should be treated as election workers and when taxes should be withheld from wages. It will also cover what should be included in earnings.

Questions emailed to: mailto: TEGE.outreach@IRS.gov with the subject line “Pre-submitted questions for Election Worker webinar (June 24)” will be answered as time permits. The deadline for submitting questions is June 10, 2021. 

For more information, see Webinars for Tax Exempt & Government Entities.

Live Webinar on Election Workers on June 24
 
The Tax Exempt and Government Entities Division would like to invite you to register to watch the free webinar on Reporting Election Workers Earnings on June 24, 2021 at 1:00 p.m. (ET).

This webinar is designed to explain which workers should be treated as election workers and when taxes should be withheld from wages. It will also cover what should be included in earnings.

Questions emailed to: mailto: TEGE.outreach@IRS.gov with the subject line “Pre-submitted questions for Election Worker webinar (June 24)” will be answered as time permits. The deadline for submitting questions is June 10, 2021.
 
For more information, see Webinars for Tax Exempt & Government Entities.

The Tax Exempt and Government Entities Division invites you to register for the free Taxable Fringe Benefit Essentials for Employers Webinar on April 14, 2021 at 1:00 p.m. (ET).
 
This webinar is designed to explain what a fringe benefit is and how to value a fringe benefit. It will cover the most common fringe benefits and explain if those fringe benefits are taxable.
 
For more information, see Webinars for Tax Exempt & Government Entities.

Taxable Fringe Benefit Essentials for Employers Webinar

The Tax Exempt and Government Entities Division would like to invite you to register to watch the free Taxable Fringe Benefit Essentials for Employers Webinar on April 14, 2021 at 1 p.m. (ET).

This webinar is designed to explain what a fringe benefit is and how to value a fringe benefit. It will cover the most common fringe benefits and explain if those fringe benefits are taxable.

For more information, see Webinars for Tax Exempt & Government Entities.

Redesigned Form W-4

The 2020 Form W-4 was redesigned to reduce the form's complexity and to increase transparency and accuracy in the withholding system. While it uses the same underlying information as the old design, it replaces complicated worksheets with more straightforward questions that make accurate withholding easier for employees.

Who must furnish a new Form W-4?

  • All new employees first paid after 2019 must use the redesigned form.
  • Existing employees who want to adjust their withholding.
  • Existing employees that claim to be exempt from federal income tax withholding.

For additional information about Form W-4, see the links below:

What’s New with Fringe Benefits

The business mileage rate for 2021 is 56 cents per mile down from 57.5 cents in 2020. You may use this rate to reimburse an employee for business use of a personal vehicle, and under certain conditions, you may use the rate under the cents-per-mile rule to value the personal use of a vehicle you provide to an employee.

For more information on Fringe Benefits, if they are taxable and how they should be reported, see the links below:

403(b) Contribution Limits

The limit on elective salary deferrals has not changed for 2021. The amount an employee can contribute to a 403(b) account out of salary is $19,500 for 2020 and 2021.

Age 50 catch-up: A plan may permit employees who are age 50 or over at the end of the calendar year to make additional salary deferrals of $6,500 in 2020 and 2021.

15-years of service catch-up: A 403(b) plan may permit employees who have at least 15 years of service with the same eligible 403(b) employer (a public school system, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches (or associated organization)), to make additional salary deferrals equal to the lesser of:

  • $3,000,
  • $15,000, reduced by the amount of additional elective deferrals made in prior years because of this rule, or
  • $5,000 times the number of the employee’s years of service for the organization, minus the total elective deferrals made for earlier years.

For employees eligible for both the age 50 and 15-years of service catch-ups, salary deferrals in excess of the deferral limit ($19,500 in 2020 and 2021) are first applied to the 15-year catch-up and then the age 50 catch-up.

For more information about 403(b) contributions limits, see the links below:

Find Us on Social Media
The IRS uses social media to share federal, state, and local government information. This includes tax changes, scam alerts, initiatives, tax products and services, and more.
IRS social media resources include:

Subscribe to the platform that best fits your needs.

Taxable Fringe Benefit Essentials for Employers Webinar

The Tax Exempt and Government Entities Division would like to invite you to register to watch the free Taxable Fringe Benefit Essentials for Employers Webinar on April 14, 2021 at 1:00 p.m. (ET).

This webinar is designed to explain what a fringe benefit is and how to value a fringe benefit. It will cover the most common fringe benefits and explain if those fringe benefits are taxable.

For more information, see Webinars for Tax Exempt & Government Entities.

Find Us on Social Media
The IRS uses social media to share federal, state, and local government information. This includes tax changes, scam alerts, initiatives, tax products and services, and more.
IRS social media resources include:

Subscribe to the platform that best fits your needs.

Who is entitled to Covid‐19 Relief Credits?

The Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided two new employer tax credits:

  • Sick and Family Leave Credit
  • Employee Retention Credit.

As a reminder, federal, state and local government entities, and any agencies or instrumentalities of those entities, are not entitled to either of these credits. However, tribal governments may be eligible to claim both the Sick and Family Leave Credit and the Employee Retention Credit. For more information on eligible employers, see:

If a Form 941, Employer's Quarterly Federal Tax Return, claiming either of these credits has been filed by or on behalf of a federal, state or local government entity, or any agency or instrumentality of a government entity, the claimed credits will be disallowed and result in a balance due tax liability.

The following information provides more details on the credits:

Thank You for Attending the Form 1099-NEC Awareness Day Event

The IRS Tax Exempt and Government Entities Division and the Office of Indian Tribal Governments thanks the over 5,000 participants who attended the Form 1099-NEC Awareness Day Zoom meetings January 12, 14 and 21, 2021.

These meetings provided an overview of the Form 1099-Non-Employee Compensation (NEC) and reporting requirements for the 2021 filing season.

Check out these links to resources discussed during the presentations:

Online Tools and Resources:

Educators can now deduct out-of-pocket expenses for COVID-19 protective items

Eligible educators can deduct unreimbursed expenses for COVID-19 protective items to stop the spread of COVID-19 in the classroom. COVID-19 protective items include, but are not limited to: 

  • face masks;
  • disinfectant for use against COVID-19;
  • hand soap;
  • hand sanitizer;
  • disposable gloves;
  • tape, paint or chalk to guide social distancing;
  • physical barriers (for example, clear plexiglass);
  • air purifiers; and
  • other items recommended by the Centers for Disease Control and Prevention (CDC) to be used for the prevention of the spread of COVID-19.

Rev. Proc. 2021-15 PDF provides guidance related to educators and their expenses under the COVID-related Tax Relief Act of 2020, which was enacted as part of the Consolidated Appropriations Act, 2021. The new law clarifies that unreimbursed expenses paid or incurred after March 12, 2020, by eligible educators for protective items used to stop the spread of COVID-19 in the classroom qualify for the educator expense deduction.

The educator expense deduction rules permit eligible educators to deduct up to $250 of qualifying expenses per year ($500 if married filing jointly and both spouses are eligible educators, but not more than $250 each).

Eligible educators include any individual who is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year.

This deduction is for expenses paid or incurred during the tax year. Taxpayers claim the deduction on Form 1040, Form 1040-SR or Form 1040-NR (attached Schedule 1 (Form 1040)).

Find Us On Social Media

The IRS uses social media to share federal, state and local government information. This includes tax changes, scam alerts, initiatives, tax products and services, and more.

IRS social media resources include:

Subscribe to the platform that best fits your needs to supplement your GovDelivery subscription.

The Tax Exempt and Government Entities Division (TEGE) invites you to join us for a free Zoom awareness meeting on either January 12, 2021 or January 14, 2021. 

This meeting is designed to help governmental entities understand the new Form 1099-NEC (Non-Employee Compensation) reporting requirements for the 2020 filing season.  Each session is limited to the first 950 participants. 

Dates and Times:
Several dates and times offered to maximize the reach of the event.

Tuesday January 12, 2021

Thursday January 14, 2021

Participants may also join via voice call using the following information:

Dial by your location and input the meeting ID when prompted:

2020

Reporting nonemployee compensation and backup withholding

The IRS reminds employers that starting in tax year 2020, payers must complete the new Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee.

Generally, payers must file Form 1099-NEC by January 31. For 2020 tax returns, the due date is February 1, 2021. There is no automatic 30-day extension to file Form 1099-NEC. However, an extension to file may be available under certain hardship conditions.

Also, nonemployee compensation may be subject to backup withholding if a payee has not provided a taxpayer identification number to the payer or the IRS notifies the payer that the TIN provided was incorrect.

Guidance on reporting qualified sick and family leave wages paid

The IRS provided guidance in Notice 2020-54 PDF to employers requiring them to report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA) on Form W-2.

The Notice also provides employers with optional language to use in the Form W-2 instructions for employees.

Additional information about tax relief for those affected by the COVID-19 pandemic can be found on IRS.gov.

Do you hire election workers?

Each election year, thousands of state and local government entities hire workers to conduct primary and general elections. Compensation paid to election workers is income and may be subject to taxes and reporting requirements.

Election Workers: Reporting and Withholding will help you understand their unique reporting and withholding requirements and which election workers may be covered by a Section 218 Agreement.

Deposit Requirements for Employment Taxes, Notice 931

Before the beginning of each calendar year, you must determine if you should use a monthly or semiweekly deposit schedule for employment taxes. The deposit schedule you must use is based on the total tax liability you reported during a lookback period. Your deposit schedule isn't determined by how often you pay your employees or make deposits.

Instead of making deposits during the current quarter, you can pay your total Form 941 tax liability when you timely file Form 941 if:

  1. Your total Form 941 tax liability for either the current quarter or the preceding quarter is less than $2,500, and 
  2. You don't incur a $100,000 next-day deposit obligation during the current quarter.

Refer to Notice 931 PDF for deposit requirements and more information about the lookback period for calendar year 2021.

Check out Filing and Paying to find additional information on paying and depositing your employment taxes.

The IRS Tax Exempt and Government Entities Division invites you to view the Worker Classification webinar (recorded October 7, 2020) on IRSvideos.gov.
 
This webinar is designed to help government and private sector entities determine whether a worker is an employee or independent contractor. It will also cover Form SS-8, Classification Settlement Agreements and what to do if an individual is an employee.

Webinars on IRSvideos

Check out this presentation on payroll reporting.

       Learn about reconciling your payroll to eliminate discrepancies and reduce the number of W-2C’s filed.

Find these presentations and more on IRSvideos.gov.

Reminder:  Worker Classification Webinar on October 7
The Tax Exempt and Government Entities Division invites you to register for the free Worker Classification Webinar on October 7, 2020 at 1:00 p.m. (ET).
This webinar is designed to help government and private sector entities understand the definition of an employee and determine whether a worker is an employee or independent contractor. It will also cover Form SS-8, Classification Settlement Agreements and what to do if an individual is an employee.

Questions emailed to: TEGE.outreach@IRS.gov with the subject line “Pre-submitted questions for the Workers Classification webinar (October 7)” will be answered as time permits.  For further details, see Webinars for Tax Exempt & Government Entities.
 

Reminder: Worker Classification Webinar on October 7
The Tax Exempt and Government Entities Division invites you to register for the free Worker Classification Webinar on October 7, 2020 at 1:00 p.m. (ET).

This webinar is designed to help government and private sector entities understand the definition of an employee and determine whether a worker is an employee or independent contractor. It will also cover Form SS-8, Classification Settlement Agreements and what to do if an individual is an employee.

Questions emailed to: TEGE.outreach@IRS.gov with the subject line “Pre-submitted questions for the Workers Classification webinar (October 7)” will be answered as time permits. For further details, see Webinars for Tax Exempt & Government Entities.

Application Deadline for TEGE Commissioner Extended to October 9
The IRS has extended the application deadline for the Tax Exempt and Government Entities Division Commissioner position until October 9, 2020. The IRS encourages interested applicants to visit USAjobs.gov for full details.

For a complete application, applicants need to include the following documents:

  • Resume
  • Separate document for Executive Core Qualifications (ECQ) narrative
  • Separate document for Technical Competencies (TC) narrative
  • SF-50 for current or former federal employees
    • If a current or former Senior Executive Service (SES) employee, SF-50 should indicate your SES status

Additional details are available on USAJobs.gov, including more information for current and former federal Senior Executives interested in applying.

Worker Classification Webinar

The Tax Exempt and Government Entities Division would like to invite you to register to watch the free Worker Classification Webinar on October 7, 2020 at 1:00 p.m. (ET).
This webinar is designed to help government and private sector entities understand the definition of an employee and determine whether a worker is an employee or independent contractor. It will also cover Form SS-8, Classification Settlement Agreements and what to do if an individual is an employee.

Questions emailed to: TEGE.outreach@IRS.gov with the subject line “Pre-submitted questions for the Workers Classification webinar (October 7)” will be answered as time permits.

For further details, see Webinars for Tax Exempt & Government Entities.

September 17 deadline approaching to apply for TE/GE Commissioner

With the Sept. 17 application deadline approaching, the IRS is seeking qualified candidates to serve as the commissioner of the Tax Exempt and Government Entities division. One of the four business operating divisions, TE/GE serves a diverse population of entities that include small local community organizations, major universities and philanthropic organizations, hospitals, large pension funds, small business retirement plans, local and state government, participants in complex tax-exempt bond transactions, and Indian tribal governments and tribal associations. This Senior Executive Service position involves working closely with the IRS’s top leadership and, in turn, providing executive leadership and direction to a nationwide staff of executives and managers to continue supporting creative and innovative solutions to the challenges facing the IRS as it deals with TE/GE’s important stakeholders. 

The open position follows the August announcement by Tammy Ripperda, the current TE/GE commissioner, that she plans to retire from the government at the end of September following 32 years of public service. During her career, Tammy has been at the forefront of many improvement initiatives for the IRS’s tax enforcement functions. In her numerous executive positions, she has served in three of the IRS’s four operating divisions.
For more information and how to apply, see the posting on USAJOBS.gov. The application period for this Senior Executive Service position runs through Sept. 17, 2020. All qualified candidates are encouraged to apply.

IRS Letter 2800C and Employer Federal Income Tax Withholding

IRS sends Letter 2800C, also called a “lock-in” letter, to instruct employers to follow a specific federal income tax withholding arrangement for an employee who doesn’t have enough income taxes withheld from their wages. The employee has 60 days from the date of the letter to discuss the determination with the IRS before the withholding arrangement takes effect. Starting 60 days after the date of the letter, the withholding rate in Letter 2800C is locked in and the employer must begin withholding from the employee at that new rate.

There are two situations in which the employer may withhold at a rate that is different from the rate in Letter 2800C. The first occurs if the employee submits a new Form W-4 with a statement supporting a decrease in their withholding rate and the IRS approves. In this situation, the IRS will inform the employer and the employee with a Letter 2808C. Letter 2808C specifies the changes to the employee’s withholding rate that have been approved by the IRS. The changes in Letter 2808C are effective immediately. There is no 60-day waiting period.

The second situation involves increasing the rate of withholding above what is stated in the “lock-in” letter. This situation occurs if the employee submits a new Form W-4 that results in more withholding than the rate in the “lock-in” letter. In this situation, the employer may accept and process the employee’s request. The employer must disregard any new Form W-4 the employee submits that decreases the amount of withholding. Employers should block the employee’s access to make changes to online Forms W-4 if that access may allow the employee to decrease their withholding below the rate specified in a Letter 2800C.
Employers that do not withhold federal income tax from their employee as instructed by a “lock-in” letter will be liable for paying the additional tax required to be withheld.

You can find more information at Withholding Compliance Q&As and view our Lock-In Letter Video.

Revised Form W-4 and new Income Tax Withholding Assistant for Employers

The Internal Revenue Service has revised Form W-4 and launched two new online tools:

  1. The Income Tax Withholding Assistant for Employers is a spreadsheet-based tool designed to help employers, especially small businesses, easily transition to the redesigned withholding system (no longer based on withholding allowances), which went into effect on Jan. 1. IRS has posted a webinar, Understanding the 2020 Form W-4 and How to Use it to Calculate Withholding (video, 1:10:42), to the IRS video portal.
  2. A new and improved Tax Withholding Estimator that incorporates the changes from the redesigned Form W-4, Employee’s Withholding Certificate, that employees can fill out and give to their employers this year. The IRS urges everyone to see if they need to adjust their withholding by using the Tax Withholding Estimator to perform a Paycheck Checkup. Watch our video (2:00) on the IRS Tax Withholding Estimator.

New filing addresses for Form 941, employer’s quarterly federal tax returns

The addresses for where to file paper Form 941 tax returns have changed. The IRS recommends checking any pre-printed envelopes used to mail business returns to ensure the correct address and avoid delays. Or, you may file and pay electronically for the quickest processing.

Recent IRS News Releases

  • IRS recommends business owners e-file payroll tax returns
  • IRS provides tax inflation adjustments for tax year 2020
  • Feb. 20 IRS webinar focuses on gig economy
  • IRS urges tax professionals, taxpayers to protect tax software accounts with multi-factor authentication

Issue snapshot

IRS videos

IRS launches Taxpayer First Act webpage and email account 

The Taxpayer First Act of 2019 expands and strengthens taxpayer rights. The Act also requires the agency to develop a comprehensive customer service strategy, modernize its technology and enhance its cyber security. The IRS is requesting commentary from taxpayers, including those in the small business and self-employed industries. Those interested in providing feedback on reorganization or other components of the TFA are encouraged to send it to TFAO@irs.gov. For more information about the TFA, visit IRS.gov/taxpayer-first-act.

2019

We are looking for feedback to improve the Federal, State or Local government section of IRS.gov to help you easily find what you need. We want IRS.gov to be the place our customers come for correct and timely information to meet their tax obligations. Your participation will help us improve our navigation menus and labeling, which will save you valuable time.

The study takes approximately 10-15 minutes to complete. Responses are confidential and anonymous. Note: This study is now closed.

We constantly strive to provide excellent service.

Thank you for helping us improve our website!

Cost-of-Living Adjustments

The IRS released the 2020 COLA limits for retirement plans and IRAs. See which contribution, deferral and compensation limits have increased for 2020. You may also want to review the tax year 2020 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes.

CP 2100 Notices

The IRS will issue a CP2100 or CP2100A Notice if the payee’s name and Taxpayer Identification Number (TIN) on the information return filed does not match IRS records. This notice informs payers they may be responsible for beginning backup withholding, if they haven’t already done so.Publication 1281, Backup Withholding on Missing and Incorrect Name/TIN(s) PDF, contains all the information payers need to comply with backup withholding requirements.

These resources will help you avoid receiving a CP2100:

Do you hire election workers?

Each election year, thousands of state and local government entities hire workers to conduct primary and general elections. Compensation paid to election workers is income and may be subject to income tax and FICA taxes as well as reporting requirements.

Election Workers: Reporting and Withholding will help you understand their unique reporting and withholding requirements and which election workers may be covered by a Section 218 Agreement.

TIN Matching Program Video

Learn how to: Decrease the number of notices you receive from the IRS. Help perfect W-9 data before filing Forms 1099-MISC. Reduce Backup Withholding problems. And more...

Taxpayer Identification Matching (TIN) Tools

Learn about: The online TIN Matching Program and the Social Security Number Verification Service

Have questions on whether government entities need a tax-exempt number or a determination letter?

Our Government Information Letter webpage and video can answer:

  • How can you prove your “tax-exempt” status as a government entity?
  • Why don’t government entities require a determination letter from the IRS to secure tax-exempt status?
  • What does it mean to be a dual-status entity?  

How do I know if someone I hire is an employee or an independent contractor?

Government employers have unique employment tax classification issues. Worker classification can be difficult but our Employer and Pay Related Issues webpages and TE/GE Worker Classification: Employee or Independent Contractor? video will help you by answering common questions. You can also find links to IRS payroll forms and publications that include information specific to government entities in the Public Employer's Toolkit.

IRS Nationwide Tax Forums Offer More than Continuing Education

Educational seminars are just one benefit you get when you attend the 2019 IRS Nationwide Tax Forums. Others include the Case Resolution Program, opportunities to talk with IRS subject matter experts, workshops, and networking opportunities with your colleagues. Register now at www.irstaxforum.com.

Paycheck Checkup

Please help IRS spread the word that following major tax law changes, workers should review their withholding to make sure they have the right amount of tax taken out of their paychecks.

Tax Information for Federal, State and Local Governments

On IRS.gov/fslg, you’ll find information for government employers on getting started, information returns, the filing process, employment tax due dates and information return penalties.

Watch the videos on the IRS Video Portal for more information on how federal, state and local government employers can meet their tax compliance requirements.

Taxpayer Identification Number (TIN) Matching Tools

Read about the TIN Matching tools you can use to check the TIN furnished by the payee against the name/TIN combination in the IRS database before filing Forms 1099 and W-2. See Publication 2108-A, On-Line Taxpayer Identification Number (TIN) Matching Program PDF.

Tax Cuts and Jobs Act

Learn more about the provisions of the Tax Cuts and Jobs Act that affect federal, state and local government employers at IRS.gov/taxreform.

TE/GE Fiscal Year 2019 Program Letter

The 2019 Program Letter PDF shares where we are heading in the new fiscal year, including executing compliance strategies, building better processes, and providing useful information and guidance on the Tax Cuts and Jobs Act.

TE/GE Fiscal Year 2018 Accomplishments Letter

The Accomplishments Letter PDF lists each TE/GE functions’ accomplishments under our compliance program.

Be prepared to validate your identity if contacting the IRS

Taxpayers and tax professionals will be asked to verify their identities if they call the IRS; having the right information can save you time.

The Dirty Dozen represents the worst of the worst tax scams

Compiled annually, the “Dirty Dozen" lists a variety of common scams that taxpayers may encounter anytime but many of these schemes peak during filing season as people prepare their returns or hire someone to help with their taxes.

TE/GE job announcements

The IRS/Department of Treasury has announced revenue agent (GS 05-11) openings in multiple locations for both Exempt Organizations and Employee Plans. These announcements are open on USAJOBS until January 29, 2020. Apply today to become part of our team.

2018

Election Workers: Reporting and Withholding

Each election year, state and local government entities hire temporary workers to conduct primary and general elections. Election workers are subject to unique reporting and withholding requirements and may be covered by a Section 218 Agreement.

IRS Videos

Watch the latest presentations made for federal, state and local governments.

  • Why File Form 1099-MISC – Learn about the basic filing requirements for reporting payments on Form 1099-MISC.
  • Taxpayer Identification Number (TIN) Matching Program (obsolete) – Use TIN Matching to validate whether the TIN and name combinations provided on Forms W-9 match IRS tax filing records prior to submitting related information returns.
  • 10 Minutes on Reconciling Forms 941/W-3/W-2 to Gross Payroll – Employers who reconcile payroll can avoid discrepancies by ensuring that employees’ wages and taxes reported to the IRS and the Social Security Administration match.

Find these presentations and more on the IRS Video Portal.

Issue Snapshots

Issue Snapshots are IRS employee job aids that provide analysis and resources along with audit tips or issue indicators for technical tax issues. The most recent Issue Snapshots for federal, state and local government employers are:

IRS Videos

Watch the latest recorded webinars for federal, state, and local governments. Find these presentations and more on the IRS Video Portal.

  • Correcting Employment Taxes Using Form 941-X – Learn how to use Form 941-X to correct errors on employee wages; income tax withheld from wages; taxable Social Security wages and tips; taxable Medicare wages and tips subject to Additional Medicare Tax withholding. 
  • IRS “B” Notices and Backup Withholding (obsolete) – Learn about backup withholding, who is responsible and how it’s reported, plus what to do with a B-Notice.

2017

Early Due Dates for W-2, W-3 and Form 1099-MISC

Employers face a January 31, 2018, due date for filing 2017 Forms W-2 and W-3 with the Social Security Administration. This date applies to both electronic and paper filers.

Form 1099-MISC is due to the IRS and individuals by January 31 when reporting non-employee compensation payments in box 7.

Penalties for failure to file correct information returns or furnish correct payee statements have increased and are now subject to inflationary adjustments. These increased penalties are effective for information returns required to be filed after December 31, 2015.

Form 1098-T Reporting Changes and Limited Penalty Relief for 2017 Returns

Eligible educational institutions are required to report the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year on Form 1098-T, Tuition Statement.

Announcement 2016-42 PDF provides relief from penalties under Section 6721 and 6722 to 2017 Forms 1098-T. The IRS will not impose penalties on eligible education institutions that report the aggregate amount billed (instead of amount received) for qualified tuition and related expenses on 2017 Form 1098-T. 

Issue Snapshots

Issue Snapshots are employee job aids that provide analysis and resources along with audit tips or issue indicators for a given technical tax issue. The most recent Issue Snapshots for federal, state, and local governments are:

Taxpayer Identification Matching Tools

Learn how to perfect your payee data before filing Forms 1099 and W-2 using the IRS Taxpayer Identification Number (TIN) Matching Program and the Social Security Number Verification Service offered by the Social Security Administration.

Third Party Payer Arrangements

Many employers use a third party to perform acts such as withholding, reporting and paying federal employment taxes on wages paid for the employer. Learn about some of the issue indicators and audit tips used on audits of these employers.

Student FICA Exception

FICA tax generally applies to wages paid to an employee on account of employment. Learn when the FICA exception applies to an employee who has the status of a student.

IRS Videos

Watch the latest videos made for federal, state, and local governments. Find these presentations and more on the IRS Video Portal.

10 Minutes on Reconciling Forms 941/W-3/W-2 to Gross Payroll

Employers who reconcile payroll can avoid discrepancies by ensuring that employees’ wages and taxes reported to the IRS and Social Security Administration match.

Backup Withholding: When and Why

Learn when you need to backup withhold, how to report and pay backup withholding to the IRS, how to furnish that information to the payee, and what happens if you don’t backup or withhold when it’s required.

The IRS is providing several types of tax relief for those affected by hurricanes hitting Texas, Florida, Georgia, Puerto Rico and the U.S. Virgin Islands. We’re monitoring the situation closely to resolve potential tax related issues as they’re identified.

IRS Gives Tax Relief to Victims of Hurricane Harvey; Parts of Texas Now Eligible

Hurricane Harvey victims in parts of Texas have until Jan. 31, 2018, to file certain individual and business tax returns and make certain tax payments. This relief also applies to Form 5500 series returns of eligible taxpayers.

IRS Gives Tax Relief to Victims of Hurricane Irma; Additional Relief Planned

Hurricane Irma victims have until Jan. 31, 2018, to file certain individual and business tax returns and make certain tax payments. This relief also applies to Form 5500 series returns of eligible taxpayers.

Retirement Plans Can Make Loans, Hardship Distributions to Victims of Hurricane Harvey

The IRS relaxed procedural and administrative rules for retirement plan loans and hardship distributions to certain participants in 401(k), 403(b) and 457(b) plans. Retirement plans can provide this relief for participants who are victims of Hurricane Harvey or for certain family members who lived or worked inside the disaster area.

Like Harvey, Retirement Plans Can Make Loans, Hardship Distributions to Victims of Hurricane Irma

The IRS announced that 401(k)s and similar employer-sponsored retirement plans can make loans and hardship distributions to victims of Hurricane Irma and members of their families.

Beware of Fake Charity Scams Relating to Hurricanes Harvey and Irma

Fake charity scams proliferate after disasters like Hurricane Harvey and Hurricane Irma. We encourage you to seek out recognized charitable groups for your donations.