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Issue Number:  2019-10

Inside This Issue

1. Mandate to electronically file Form 4419 begins October 1, 2019
2. Early reporting replaces Form W-2 Verification Code – IRS thanks all participantsNew
3. New Tax Withholding Estimator - Big help to workers with self-employed income and retirees
4. Don't overlook payroll secutiry - Secure your data, identify attacks and how to report them 
5. New and draft forms and publication on IRS.gov

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 paper Form 4419 pdf (Rev. 9-2019) when you have an existing TCC to:

• Revise current TCC information
• Request an additional TCC for a form type listed on Form 4419 Block 8

The IRS will process Paper Forms 4419 (Rev. 6-2018) received prior to October 1 accordingly. 

Find more information on the About Form 4419, Application for Filing Information Returns Electronically webpage.

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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requires employers to submit Forms W-2 by January 31 each year, which helps the IRS combat fraud and identity theft and superseded the need for a verification code.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 appreciation to the many stakeholders, especially the payroll service providers and industry software developers, who joined in the verification code project.

Find more details on the W-2 Verification Code webpage on IRS.gov.

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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 with any workers with self-employment income or retirees you may know:

• Tax Withholding Estimator helps retirees; figures tax on Social Security benefits
• New IRS Tax Withholding Estimator helps workers with self-employment income

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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 plan and report thefts immediately
• It’s important to know the signs if you are a cyberthief’s victim
• Follow these simple steps to protect client data
• Here’s what you can do so you aren’t taken on a phishing trip

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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)

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