9/8/2021
Contents:
Visit Federal, State and Local Governments Redesigned Website
The IRS Office of Federal, State and Local Governments announces the new design and layout of the Tax information for Federal, State and Local Governments Website. The website is an important tax resource providing valuable information and resources for government entities.
Visit the homepage at irs.gov/fslg to view the redesigned site.
Reconciliation of Payroll Webinar
You are invited to register for a free webinar on Payroll Reconciliation hosted by the Office of Federal, State and Local Government on October 14, 2021 at 2:00 PM (ET). This webinar will cover when your payroll should be reconciled and what payroll amounts to use. It will also explain reconciling gross payroll to taxable income for federal income tax and FICA.
Tax Credits for Paid Leave Under the American Rescue Plan Act of 2021 for Leave After March 31, 2021
The American Rescue Plan Act of 2021 (ARP) allows small and midsize employers, and certain governmental employers to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to their employees due to COVID-19, including leave taken by employees to receive or recover from COVID-19 vaccinations.
The ARP tax credits are available to eligible employers that pay sick and family leave for leave from April 1, 2021, through September 30, 2021. For more on these ARP tax credits, see the fact sheet and related FAQs.
FIRE System Update Coming September 2021
Any filer, including corporations, partnerships, employers, estates or trusts who files 250 or more Forms 1097, 1042-S, 1098, 1099, 3921, 3922, 5498, 8027, 8955-SSA or W-2G for any calendar year must file their information returns electronically using Filing Information Returns Electronically (FIRE) System. FIRE is the online tool used to transmit information returns and automatic extension requests to the IRS. Before filers can use FIRE, they must complete an online application to obtain a 5-digit alphanumeric code known as a Transmitter Control Code (TCC). Currently, Form 4419 is used to request a TCC.
A new online application, Information Returns (IR) Application for Transmitter Control Code, is scheduled to deploy on September 26, 2021 and will replace Form 4419. The new application will be available on the FIRE page. For more information on FIRE changes, see FIRE System Update: Improving the Process and Security for Information Return (IR) Application for Transmitter Control Code (TCC).
EIN Holders Must Update Any Change to Responsible Party
The IRS is urging those entities with Employer Identification Numbers (EINs) to update their applications if there has been a change in the responsible party or contact information.
IRS regulations require EIN holders to update responsible party information within 60 days of any change by filing Form 8822-B, Change of Address or Responsible Party - Business. It is critical that the IRS have accurate information in cases of identity theft or other fraud issues related to EINs or business accounts.
For more information see IR-2021-161, July 30, 2021.
Source: IRS FSLG Newsletter