2006 changes to tax forms. what’s changed for 2006??? form w-2 form w-2c form 4852 form 941 form...
TRANSCRIPT
2006 CHANGES
TOTAX FORMS
What’s Changedfor 2006???
• Form W-2
• Form W-2c
• Form 4852
• Form 941
• Form 944
• Form 940
2006 Form W-2 Changes
• Box e — New Suffix Field
• Box 12 — New Codes AA and BB
• Back of Copy 2 — Employee Instructions
• Data Entry Reminder — Decimal Point and Cents are Required
Form W-2c Changes
• Revised — January 2006
• Box c — SSN Corrections — ADDED
• Box e — Suffix Field — ADDED
• Magnetic Media Filing — ELIMINATED
• Online Filing — Available on SSA Website
Form W-3c Changes
• Revised — January 2006
• Box c — Deleted “Section 218” Checkbox
• Box c — Added “944/944-SS” Checkbox
Form 4852 Changes
• Revised in December 2005.
• Used for Missing or Incorrect Form W-2 or Form 1099-R.
• Added Checkboxes for Form ID.
• W-2 Filers Should Review Next Year’s Social Security Statement.
Form 941 Changes
• Title Change—“QUARTERLY”
• Lines 7f & 7g—“(attach Form 941c)”
• Line 12—Credit Card Payments
• Caution—BOTH Pages Must Be Completed.
• Line 16—Added “or Stopped Paying Wages.”
• Alternative Signature [R. P. 2005-39]
NEW Form 944
• ANNUAL Employment Tax Return
• Scannable
• Small Employers [< = $1,000 in TOTAL Tax]
• Notified by IRS
• EXCEPTIONS [Call 1-800-829-0115]– E-file– Expected Liability EXCEEDS $1,000
• Deposit Rules Apply
• Credit Card Payments
Changes to Form 940“Plain & Simple”
• Completely Redesigned for 2006
• Plain Language
• Form 940, Part II — DELETED
• Exempt Payments — Checkboxes
• Schedule A — MultiState/Credit Reduction
• New Payment Voucher
• Form 940-EZ Discontinued
The new Form 940 for 2006 –
“Plain & Simple”
The new Form 940 for 2006 –
“Plain & Simple”• New check boxes in
top right corner– No more A, B, C,
questions– Will promote accuracy,
reduce unnecessary correspondence
The new Form 940 for 2006 –
“Plain & Simple”• No more hand-written explanations
of exempt payments required – Check boxes capture exempt payments
The new Form 940 for 2006 –
“Plain & Simple”• New section for computing adjustments
– Replaced old Part II, lines 1-6 with new Part 3 (lines 9, 10 & 11)
The new Form 940 for 2006 –
“Plain & Simple”• New Schedule A– Part 1 for multi-state employers
• Simplifies the process - Just check the boxes to tell us where you were required to pay state unemployment tax.
– Part 2 for credit reduction information• Will simplify computation, increase processing
accuracy, and reduce unnecessary taxpayer correspondence.
The new Form 940 for 2006 –
Schedule A - “Plain & Simple”
The new Form 940 for 2006 –
“Plain & Simple”• Form 940-V Payment Voucher removed
from form – Less likelihood of being detached– Will expedite processing, prevent
unnecessary correspondence
Next Steps
• Completed design phase• On track for 2006 release of new Form• Working with software developers to
ensure consistent format• Processing of new Form 940 begins in
January, 2007
2006 Changes to Forms 1098/1099
• Form 1098-C– 4 Boxes Added– Increased to Full Page
• Form 1098-T [R.P. 2005-50]– Change Accounting method (Paid vs. Billed)
• Form 1099-R– Codes “V” & “W” Added (Roth Distributions)
• NO NEW FORMS for 2006• Magnetic Media [Pub. 1220]
– 2006—No Diskette– 2008—No Tape
PROPOSED Changes
toTax
Forms
2007 Form W-2
• PROBLEM — Employee’s SSN is Visible in Window Envelopes
• PROPOSAL — Move SSN to Box a. Relocate Box a.
• New Problems???
• COMMENTS — Send Comments to: [email protected]. [Subject Line = “Forms Comment”]
94X PROJECT
• Office of Taxpayer Burden Reduction
• 2008 Target
• CURRENT — Adjustments [941c]
• PROPOSED — Amendment [941X]
• COMMENTS — Send Comments to:
[email protected]. [Subject Line = “Forms Comment”]
