In Watson v. U.S., an appellate court ruled that the IRS can recharacterize FICA-free distributions from S corps to their owners as FICA-taxable compensation, and allowed the IRS to set the parameters for determining that reasonable FICA-taxable salary. And so far it’s nailed S corps and their owners 100% of the time. Two recent cases illustrate.
Panicky phone calls to the Payroll department from employees who lost their original W-2s are about as predictable as the sun rising in the east. Here are some tips for controlling the reissued W-2 process.
The Treasury Inspector General for Tax Administration has reported that during the 2011 tax year, 285,670 EINs were stolen or fraudulently used to claim income tax refunds totaling more than $2.25 billion. TIGTA also estimated that the IRS could issue $11.4 billion in tax refunds over the next five years due to EIN fraud.
The IRS has been busy adding to its regulatory agenda. Here’s the latest news from the regulations front.
W-2s are filed with the Social Security Administration in winter. Corrections, which are made on Form W-2c, begin immediately thereafter. The earlier you fix errors on your W-2s, the less likely it is you’ll be penalized by the IRS.
Beginning Jan. 1, 2015, staffing agencies and other third-party employers must pay minimum wages and overtime to home health care workers, including certified nursing assistants, home health aides, personal care aides, caregivers and certain companions.
It’s almost inevitable that some employees will misplace their original W-2 statements. Here’s a sample form employees can use to request a reissued W-2.
If you’re located in only one state, you never have to worry about withholding another state’s income taxes or applying another locality’s paid sick leave law, right? Not necessarily. It’s possible that you’ve become an interstate employer without knowing it.
Breathe a little easier if you have a cafeteria plan that, after the demise of the federal Defense of Marriage Act and before the IRS released guidance, allowed same-sex married employees to cover their spouses’ health insurance on a pretax basis or allowed them to seek reimbursement from health or dependent care flexible spending accounts.
In the movie “Groundhog Day,” the protagonist was destined to repeat the same day over and over again. If you’ll be e-filing your W-2s using the Social Security Administration’s EFW2 filing specs, you can avoid repeating filing mistakes by taking a stroll through this checklist.