The IRS has been busy adding to its regulatory agenda. Here’s the latest news from the regulations front.
1. Temporary regs authorize voluntary withholding. Temporary and proposed regulations allow the IRS to designate payments that parties—employers and employees (for payments not already subject to income tax withholding) or payers and payees—can agree will be subject to income tax withholding. The IRS will designate the payments that may be subject to voluntary withholding in its weekly Internal Revenue Bulletin. The temporary regs became effective Nov. 27, 2013, and will expire Nov. 25, 2016. (78 F.R. 71476, 11-29-13)
2. Final regs allow agents to report FUTA for recipients of home care services. Under final regs, third parties who already act as withholding agents for recipients of government subsidized home health care services may act as agents for FUTA purposes and file Form 940 on recipients’ behalf. Agents can file...(register to read more)