e-News for Small Business issue 2019-21

Inside This Issue

  1. In the news: Jan. 31 filing deadline remains for employer wage statements, independent contractor forms
  2. Employers: Finalized version of 2020 Form W-4 now available
  3. New filing addresses for Form 941, employer’s quarterly federal tax returns
  4. IRS updates per-diem guidance for business travelers and their employers
  5. IRS reminds business taxpayers of required statement for General Business Credits
  6. Business owners, be wary of ID thieves this holiday season

1.  In the news: Jan. 31 filing deadline remains for employer wage statements, independent contractor forms


The Internal Revenue Service recently reminded employers and other businesses that wage statements and independent contractor forms still have a Jan. 31 filing deadline.

The early filing date means that the IRS can more easily detect refund fraud by verifying income that individuals report on their tax returns. Employers can avoid penalties by filing the forms on time and without errors. The IRS recommends e-file as the quickest, most accurate and convenient way to file these forms.

IRS news release: Jan. 31 filing deadline remains for employer wage statements, independent contractor forms.

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2.  Employers: Finalized version of 2020 Form W-4 now available


The finalized version of the 2020 Form W-4, Employee’s Withholding Certificate (pdf) is now available on IRS.gov.
 
The new W-4 form better incorporates the changes ushered in by the Tax Cuts and Jobs Act allowing employees to more accurately estimate the amount of tax they ask their employers to withhold from their paychecks beginning in 2020. The goal of the new design is also to balance simplicity, accuracy and privacy for employees while minimizing burden for employers and payroll processors.

For more information about the new W-4, go to About Form W-4 on IRS.gov. For the latest FAQs regarding the form, go to Frequently Asked Questions.

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3.  New filing addresses for Form 941, employer’s quarterly federal tax returns


The addresses for where to file paper Form 941 tax returns have changed. The IRS recommends checking any pre-printed envelopes used to mail business returns to ensure the correct address and avoid delays. Or file and pay electronically for quickest processing.

See the Tax Information for Businesses page on IRS.gov for more details.

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4.  IRS updates per-diem guidance for business travelers and their employers


The IRS recently issued guidance for business travelers to include changes resulting from the Tax Cuts and Jobs Act.

Although TCJA suspended the miscellaneous itemized deduction that employees could take for non-reimbursed business expenses, self-employed individuals and certain employees, such as Armed Forces reservists and eligible educators may still use per diem rates for meals and incidental expenses, or incidental expenses only.

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5.  IRS reminds business taxpayers of required statement for General Business Credits


The general business tax credit is the total value of all the individual credits to be applied against income on a tax return. This credit can be carried forward for a number of years in most cases and can also be carried back in some cases.

As 2020 tax season approaches, the IRS reminds business taxpayers about the need to attach a statement for each credit claimed. See the Instructions for General Business Credits, Form 3800, line 4, for specific information regarding this requirement.

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6.  Business owners, be wary of ID thieves this holiday season


Business and self-employed individuals should be alert to the holiday season’s heightened potential for identity theft and contact the IRS if they experience any of these issues:

  • Extension to file requests are rejected because a tax return with the Employer Identification Number (EIN) or Social Security number (SSN) is already on file.
  • An e-filed return is rejected because of a duplicate EIN or SSN is already on file with the IRS.
  • An unexpected receipt of a tax transcript or IRS notice that doesn’t correspond to anything submitted by the filer.
  • Failure to receive expected and routine correspondence from the IRS because the thief has changed the address.
Local IRS Offices
York
2670 Industrial Hwy, York, PA 17402
Monday-Friday 8:30am - 4:30pm
(Closed for lunch 12:30pm - 1:30pm)
(717) 757-4977

Harrisburg
228 Walnut St, Harrisburg, PA 17101
Monday-Friday 8:30am - 4:30pm
(Closed for lunch 12:30pm - 1:00pm) (717) 777-9650

Lancaster
1720 Hempstead Rd, Lancaster, PA 17601
Monday-Friday 8:30am - 4:30pm
(Closed for lunch 12:30pm - 1:00pm)
(717) 291-1994










NATP
National Association of Tax Professionals