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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.
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.
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.
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.
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.
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:
