Hot Topics from the IRS

Understanding Backup Withholding Notices

The IRS issues Backup Withholding CP2100 or CP2100A Notices to payers. These notices let payers know backup withholding may need to begin for some taxpayers.

Backup withholding begins if a taxpayer identification number (TIN) is missing or for incorrect name/TIN combinations.

Payers who receive these notifications should compare the information in the notice with their records.

  • For missing TINs: Determine if backup withholding is already set up, if not, begin immediately
  • For incorrect TINs: Compare the accounts on the listing. If they agree notify the taxpayer. If not, correct or update

Payers don’t need to send corrections made to the IRS and shouldn’t respond to the notice.

For more information, see Publication 1281 and IRS Tax Tip 2019-77.

 

Methods for Calculating W-2 Wages for Purposes of Section 199A(g)

Notice 2019-27 contains a proposed revenue procedure that provides guidance on methods for calculating W-2 wages for purposes of section 199A(g) of the Internal Revenue Code and proposed §§1.199A-8 through 1.199A-12 of the Income Tax Regulations (26 CFR part 1).

Both are contained in a notice of proposed rulemaking (REG-118425-18) being published at the same time with this notice.

Specifically, this notice provides three methods for calculating W-2 wages for purposes of section 199A(g). The guidance contained in this notice is necessary because changes may be made to the underlying Form W-2 more frequently than updates to the regulations under section 199A(g).

 

MeF Upgrading to a New System – Two Upcoming Scheduled Outages – Plan Accordingly

The IRS Modernized E-File system (MeF) will be upgrading to a new system beginning in July. During the migration, MeF will be unavailable for use. The system shutdown will occur in two phases from:

  • 12:01 a.m., July 18, 2019 through noon July 22, 2019
  • 12:01 a.m., August 3, 2019 through noon August 5, 2019

MeF submissions should not be made during the outage periods, so please plan accordingly.

A Quick Alert bulletin will be issued once MeF is available for submissions again. 

 

Draft forms and New Publications on IRS.gov

Draft forms:

  • Form W-4, Employee's Withholding Allowance Certificate
  • Form 944, Employer's Annual Federal Tax Return
  • Form 945, Annual Return of Withheld Federal Income Tax
  • Form 8922, Third-Party Sick Pay Recap

New publications:

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