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Issue Number:  2018-3

Inside This Issue

1. March 26: IRS Launches Week-Long “Paycheck Checkup” Campaign
2. Join IRS on Thunderclap to Promote a National "Paycheck Checkup"
3. New on IRS.gov
4. IRS Announces 2018 Pension Plan Limitations Are Not Affected by Tax Cuts and Jobs Act of 2017
5. Technical Guidance

As part of its “Paycheck Checkup” campaign, the IRS continues to advise taxpayers this week to check their withholdings to confirm they have the correct amount of tax taken out of their paychecks.

Employers should encourage their employees to use the updated IRS Withholding Calculator to determine if they should submit a new Form W-4.

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It's not too late to join the IRS in support of a Thunderclap campaign promoting a national “Paycheck Checkup.”

Following major tax law changes, the IRS urges all taxpayers to check their tax withholding to ensure they have the right amount of tax taken out of their paychecks. Too little tax withheld could mean a tax bill or a penalty in 2019. Additionally, with the average refund topping $2,800, some may prefer to get more money in their pay now. 

Thunderclap is a social media platform that will automatically post a message to participants’ Facebook, Twitter or Tumblr accounts to support an initiative. To sign up for the Paycheck Checkup Thunderclap: 

1. Follow this link: http://thndr.me/7BvGKI  
2. Select “Support with: Facebook | Twitter | Tumblr.” (Choose one, then repeat the process to select more platforms or a second account).
3. Authorize Thunderclap to post a single message by clicking on the “Add My Support” tab, and following the prompts to input username and password. 

On Thursday, March 29, at 2 p.m. EST, Thunderclap will automatically post, “IRS urges you to perform a Paycheck Checkup today to make sure your tax withholding is right for you. http://thndr.me/TRRWef” to all participating social media accounts. The link goes to the recently updated IRS Withholding Calculator. 

This Thunderclap is part of the IRS' “Paycheck Checkup” campaign to encourage people to review their tax withholding.

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Forms:

• Form 941 (Schedule R), Allocation Schedule for Aggregate Form 941 Filers
• Form W-2AS, American Samoa Wage and Tax Statement (Info Copy Only)
• Form W-2GU, Guam Wage and Tax Statement (Info Copy Only)
• Form W-2VI, U.S. Virgin Islands Wage and Tax Statement (Info Copy Only)
• Form W-4, Employee's Withholding Allowance Certificate
• Form W-4V, Voluntary Withholding Request

Instructions:

• Inst 941, Instructions for Form 941, Employer's Quarterly Federal Tax Return

Publications:

• Pub15-A, Employer's Supplemental Tax Guide (Supplement to Circular E, Employer's Tax Guide, Publication 15)
• Pub 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
• Pub 974, Premium Tax Credit (PTC)
• Pub 5258, Affordable Care Act (ACA) Information Returns (AIR) Submission Composition and Reference Guide

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The IRS announced that the Tax Cuts and Jobs Act of 2017 does not affect the tax year 2018 dollar limitations for retirement plans announced in IR 2017-177 and detailed in Notice 2017-64.

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Notice 2014-21 provides that virtual currency is treated as property for U.S. federal tax purposes. General tax principles that apply to property transactions apply to transactions using virtual currency.

The IRS has issued a reminder for taxpayers. Among other things, this means that:

• A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.
• Payments using virtual currency made to independent contractors and other service providers are taxable, and self-employment tax rules generally apply.  Normally, payers must issue Form 1099-MISC.
• Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2 and are subject to federal income tax withholding and payroll taxes.
• Certain third parties who settle payments made in virtual currency on behalf of merchants that accept virtual currency from their customers are required to report payments to those merchants on Form 1099-K, payment card and third party network transactions.

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