Regulatory and legislative updates to 1099 form requirements that took place in recent weeks.
Individual states and the IRS introduce new 1099 form requirements and changes to existing legislation on a frequent basis. Sovos documents each of these updates in its Taxport Compass portal to arm clients with the most current and accurate information and ensure that they are on the right track in their compliance efforts.
Here are several recently updated requirements courtesy of Taxport Compass:
Connecticut Updates Withholding Form
Connecticut recently posted a new version of its Form CT 8109, “Connecticut Withhold Tax, Payment Form for Nonpayroll Amounts.” This form is a requirement for payers of nonpayroll amounts subject to Connecticut income tax withholding who have been given exemptions from the requirement to pay electronically. The new version of the form and its instructions have no changes from last year’s, except for updating date information.
Massachusetts Publishes Interest Rate for Q2 2017
Massachusetts recently published Technical Information (TIR) 17-4, “Interest Rate on Overpayments and Underpayments.” The state updates this page quarterly with revised interest rates on overpayments and underpayments of taxes for the upcoming quarter.
The interest rate for the second quarter (Q2) of 2017 remains unchanged from the first quarter: Overpayments at 3 percent, and underpayments at 5 percent.
West Virginia Has New Guidance on Business Registration
West Virginia’s State Tax Department released a new publication entitled TSD-100, “West Virginia Business Taxes.” The publication provides guidance to businesses that need to register for business tax purposes. The six-page document is merely instructive and does not function as a legal document. The last time West Virginia published a similar document was November, 2014.
IRS Releases Updated Backup Withholding For Missing and Incorrect Name/TIN(S)
The IRS released an updated version of Publication 1281, Backup Withholding For Missing and Incorrect Name/TIN(S).There are a couple of changes from the previous revision:
- Form 1099-G payments made under IRC 6041 and 3406(b)(3)(A), which include taxable grants and agricultural payments, are now subject to backup withholding.
- New code for the Payer “B” Record to account for this change
- Position 17-18, “91” = Form 1099-G
The IRS and individual states are constantly updating forms and regulations. Keep up with the ever-changing landscape by making use of Sovos’ Taxport Compass portal.
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