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Increased Scrutiny of Payee Provided Addresses Required By New IRS Regulations to Ensure Proper Withholdings

Internal Revenue Code Section 3405(e)(13) generally requires mandatory withholding on periodic and nonperiodic distributions that are to be delivered outside the United States unless the payee is a nonresident alien or recent...more

Implementing the New Forms W-4P and W-4R: One Year Later

Effective as of January 1, 2023, payors of qualified plan distributions have been required to use a redesigned IRS Form W-4P for payee withholding elections on periodic payments and a new Form W-4R for nonperiodic payments...more

Code Section 139 Relief Period Scheduled to End: What Employers Need to Know

As the Code Section 139 relief period is scheduled to end soon along with the end of the COVID-19 national emergency, employers that assisted employees with personal expenses attributable to the COVID-19 pandemic should...more

Don’t Pay Twice: Monitor Payment of Cancelled, Reissued Qualified Plan Distributions

Cancelled and reissued qualified plan distribution checks, particularly to decedents, should be monitored for payment in light of the Internal Revenue Service’s repeated refusal to repay withholding to payor plans. If a Form...more

Resolving Erroneous Payroll Tax and Information Return Reporting Penalties with the IRS

Some taxpayers are receiving automatically generated IRS notices of underpayments and penalties with respect to Form W-2 income tax and FICA withholdings, unemployment taxes, and backup withholding, as well as other year-end...more

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