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Issue Number:  2023-01

Inside This Issue

1. Jan. 31 deadline for wage statements: Forms W-2, W-3, 1099-NEC
2. File information returns online with new free IRS portal
3. Backup withholding payment deadline is near
4. 2023 tax filing season kicks off with returns due April 18
5. 1099-K issued in error?
6. Residential energy credits available
7. Check tax withholding now to avoid underpaying taxes
8. Avoid scams: Understand how the IRS contacts taxpayers

  1.  Jan. 31 deadline for wage statements: Forms W-2, W-3, 1099-NEC

The IRS reminds employers and other businesses to file Tax Year 2022 Form W-2 and other wage statements by Jan. 31, 2023.

The forms employers should file by the Jan. 31 deadline include:

• Form W-2, Wage and Tax Statement
• Form W-3, Transmittal of Wage and Tax Statements
• Form 1099-NEC, Nonemployee Compensation

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  2.  File information returns online with new free IRS portal

Small businesses can now file Form 1099 series information returns using a new online portal, available free from the IRS. Known as the Information Returns Intake System (IRIS), this free electronic filing service is secure, accurate and requires no special software.

This may be especially helpful to any small businesses that currently send their 1099 forms to the IRS using paper forms. They can use IRIS to submit automatic extensions, make corrections and reduce expenses related to paper filing.

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  3.  Backup withholding payment deadline is near

Businesses or other payers who are required to backup withhold funds from nonpayroll payments should be aware of upcoming filing deadlines.

There are certain situations that require businesses and other payers to process and deposit backup withholding to the IRS. Most payments that businesses or payers report using Forms 1099 and W-2G may be subject to backup withholding, which requires the payer to withhold 24% of a payment and deposit it to the IRS.

Businesses and other payers must report any backup withholding and any other federal income tax withheld from nonpayroll payments on Form 945, Annual Return of Withheld Federal Income Tax. The last day for filing Form 945 is Tuesday, Jan. 31, 2023. However, if the payer made deposits on time and in full, the last day for filing is Friday, Feb. 10, 2023.

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  4.  2023 tax filing season kicks off with returns due April 18

The 2023 tax filing season has started – with a focus on improving service and a reminder to taxpayers to file electronically with direct deposit to speed refunds and avoid delays.

Learn more about the efforts to increase customer service and offers tips taxpayers can follow for a smooth filing season.

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  5.  1099-K issued in error?

Taxpayers who feel they’ve received a Form 1099-K in error must contact the entity whose name and contact information appear in the upper left corner on the front of the form. Alternatively, they should contact the payment settlement entity shown in the lower left side of the form. IRS.gov provides more information to help in the Frequently Asked Questions About Form 1099-K webpage. 

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  6.  Residential energy credits available

Taxpayers may be able to claim residential clean energy and efficient home improvement credits if they made energy saving improvements to their home in the United States in 2022.

See Instructions for Form 5695, Residential Energy Credits and frequently asked questions for more information.

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  7.  Check tax withholding now to avoid underpaying taxes

The IRS reminds taxpayers who earn wages to use the Tax Withholding Estimator now to check if they need to adjust their 2023 withholding. People's tax situations occasionally change because of life changes such as marriage or divorce, adding a child or having one move out on their own.

Checking withholding now and making any necessary adjustments early in the year may help taxpayers avoid underpaying their taxes, which can result in having to make quarterly estimated tax payments in the future.

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  8.  Avoid scams: Understand how the IRS contacts taxpayers

The tax filing season is a popular time for scammers to call, posing as the IRS and trying to trick unsuspecting taxpayers. These thieves often make threatening or alarming calls to try to steal a taxpayer’s personal information or money.

Find out how to recognize if the call is a scam – and what to do if you receive these kind of phone calls. Learn more about how the IRS contacts taxpayers and how to know it’s really the IRS reaching out.

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