IRS Hot Topics 2018 TN Statewide APA Conference

Transcription

1 IRS Hot Topics 2018 TN Statewide APA Conference Alison Broady, Stakeholder Liaison 8/10/18

2 Agenda IRS Resources for Payroll Providers Paycheck Checkup Tax Scams Worker Classification Tax Relief in Disaster Situations

3 IRS Resources for Payroll Professionals

4 Search Payroll Professional IRS.gov Bullet (28 pt.) Bullet (28 pt.) Bullet (28 pt.)

5 E-News for Payroll Professionals Legislative changes News releases and announcements Employment tax procedures Reminders and tips

6 Payroll Professionals Tax Center Bullet (28 pt.) Bullet (28 pt.) Bullet (28 pt.)

7 Paycheck Checkup

8 Why a Paycheck Checkup? Tax Cuts and Jobs Act may affect withholding: Increased standard deduction. No more personal exemptions. Expanded child tax credit. Changes to certain deductions. New tax rates and brackets. Incorrect withholding can result in unexpected tax bill, penalty or large refund.

9 Who Should Do a Paycheck Checkup? Two-income families People who: Work two or more jobs. Work part of the year. Have children and claim credits, such as Child Tax Credit. Have older dependents, including children age 17 or older. Itemized deductions in 2017.

10 Who Should Do a Paycheck Checkup? People who: Earn high incomes and have more complex tax returns. Had large tax refunds or tax bills for Employees whose personal circumstances change starting a new job, a change in marital status or number of dependents. Anyone who wants to check that they have the correct amount of federal tax withholding.

11 Paycheck Checkup: Getting Started Gather most recent paystub and copy of 2017 or 2016 tax return. Visit IRS.gov and click Withholding Calculator.

12 Paycheck Checkup Answer questions on pages 1-4 about: Filing status and dependents. Credits. Income and number of jobs per taxpayer. Adjustments. Federal tax withheld to date. Itemized deductions.

13 Paycheck Checkup: The Results Click Continue for results.

14 Submitting a W-4 Withholding Calculator provides information to fill out new Form W-4. Some employers have electronic ways to update W-4s. If not, search IRS.gov for W-4. Provide W-4 to employer ASAP.

15 More Information The law changes that affect withholding are effective in They affect returns that are due in Those who change their withholding in 2018 should reassess their situation in early The IRS will continue partnership efforts to educate the public about new withholding guidelines and the Withholding Calculator. For updates, see

16 Resources: Withholding Calculator. Withholding Calculator FAQs. Form W-4, Employee s Withholding Allowance Certificate. Publication 505, Tax Withholding and Estimated Tax. Form 1040-ES, Estimated Tax for Individuals. IRS.gov Tax Reform page.

17 Tax Scam Information For Payroll Professionals

18 W-2 Scam Poses as company executive, asks payroll employee for list of all employees W-2s Targets: businesses, public schools, universities, tribes Employer/victims should and provide POC Victims/non-victims should forward any suspicious W-2 s (including full headers) to and use subject line: W2 Scam

19 W-2 Spoof

20 Worker Classification: Employee or Independent Contractor?

21 Worker Classification Workers you hire may be: Independent contractors Employees Determination

22 Basic Definitions Employee - Individual who performs services for you who is subject to your control regarding what will be done AND how it will be done. Independent Contractor - Individual who performs services for you but you control only the work result.

23 Employee vs. Independent Contractor Categories of Evidence: 1. Behavioral control 2. Financial control 3. Type of relationship of the parties

24 Determination File Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding with IRS Six-month processing time

25 Form 8919 Misclassified workers report their share of Social Security and Medicare on Form 8919, Uncollected Social Security and Medicare Tax on Wages Replaces Form 4137 for misclassified workers

26 Resources Publication 1779 Independent Contractor or Employee Form SS-8 & Instructions Form 8919

27 Tax Relief in Disaster Situations

28 Disaster Area Is determined by the president Warrants Federal disaster assistance Known as Federally Declared Disaster Areas

29 Possible Tax Relief for Federally Declared Disasters Special tax law provisions may help taxpayers recover financially from the impact of a disaster. When warranted the IRS may: Grant additional time to file, pay, and perform certain other time sensitive acts during the postponement period Waive or abate interest and late filing or late payment penalties Establish waiver period for employment and excise tax

30 Special Relief Provisions. When a major disaster occurs, Congress may pass legislation specific to that particular event.

31 Potential Financial Relief Obtain faster refunds for individuals and businesses : Claim losses related to the disaster on the previous year tax return, usually by filing an amended return or Claim losses on the original tax return for the year the loss occurred

32 Resources IRS Publication 547, Casualties, Disasters, and Thefts Publication 2194, Disaster Resource Guide Form 4684, Casualties and Thefts Local IRS Taxpayer Assistance Center

33 Questions

34 Contact Information Alison Broady