2006 CHANGES TO TAX FORMS. What’s Changed for 2006??? Form W-2 Form W-2c Form 4852 Form 941 Form 944 Form 940.

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”]

QUESTIONS ???

Send comments to: [email protected]