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Issue Number:  2013-1

Inside This Issue

1. Welcome to e-News for Payroll Professionals
2. Proposed regulations on truncated TINS
3. Some employers may choose between filing quarterly or annually
4. Prohibited practitioner advertising
5. Voluntary Classification Settlement Program now available to more employers
6. Proposed regulations on responsibilities and liabilities of “payor agents”
7. TAS 2012 annual report
8. New on IRS.gov

Our new name more accurately encompasses our broad audience of payroll professionals working for a specific company, reporting agents, section 3504 agents and payroll service providers.

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Proposed REG-148873-09 continues the pilot program for truncated taxpayer identification number, or TTINs. Filers of certain information returns – now expanded to include those delivered electronically – may use a TTIN as an alternative to using an SSN, ITIN, or ATIN on payee statement.

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IRS.gov has information explaining how an employer may request to change its filing frequency, either from quarterly to annual (if it qualifies) or from annual to quarterly.

Requests may be made via mail (must be postmarked by March 15) or via phone (by April 1).  Any employer using a payroll service provider should coordinate any request or change with that service provider.

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A recent inquiry sent to the Issue Management Resolution System concerned restrictions on including practitioner advertising with Forms W-2 and other information returns.

As a reminder, no additional enclosures, advertising, promotional material, or a quarterly or annual report are permitted.

See IMRS Issue 12-0001531 for more information.

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The IRS is dropping or modifying several eligibility requirements that effectively barred many interested employers, especially larger ones, from applying for the Voluntary Classification Settlement Program.

The IRS is also waiving, until June 30, the requirement  that employers filed required Forms 1099 for workers they are seeking to reclassify through VCSP for the past three years.

VCSP provides significant relief from federal payroll taxes for eligible employers who are treating their workers or a class or group of workers as independent contractors or other nonemployees and now want to treat them as employees.

IR 2013-23 has more information.
 
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Proposed regulations outline the circumstances under which a payor:

• Is designated as an agent to perform the acts required of an employer and,
• Is liable for employment taxes with respect to wages or compensation paid by the payor to individuals performing services for the payor’s client pursuant to a service agreement between the payor and the client

Your comments are welcome through April 29, 2013. These proposed regulations are under section 3504 of the Internal Revenue Code.

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The National Taxpayer Advocate 2012 Annual Report to Congress focuses on tax reform, IRS funding, and identity theft.

IR-2013-3 has more information.

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Publications
2013 Pub. 15, Circular E, Employer's Tax Guide
2013 Pub. 15-A,  Employer's Supplemental Tax Guide (Supplement to Circular E, Employer's Tax Guide, Publication 15)
2012 Pub. 15-B, Employer's Tax Guide to Fringe Benefits   
2013 Pub. 15-B, Employer's Tax Guide to Fringe Benefits   
2013 Pub. 51, Circular A, Agricultural Employer's Tax Guide  
2013 Pub. 80, Circular SS - Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands
2013 Pub. 926, Household Employer's Tax Guide   
2013 Pub. 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration
2013 Pub. 1494, Table for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income (Forms 668-W (ACS), 668-W(c)(DO) and 668-W(ICS))
Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns (Rev. 02/06/2013)
Rev. Proc. 2012-46, General Rules and Specifications for Substitute Form 941 and Schedule B (Form 941), and Schedule R (Form 941)

Forms
2012  Form W-3 (PR), Informe de Comprobantes de Retencion Transmittal of Withholding Statements (Info Copy Only)  
2013 Form W-3 (PR), Informe de Comprobantes de Retencion (Info Copy Only)
2013 Form W-4, Employee's Withholding Allowance Certificate

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