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2016 Tax Reminders:
- W2s and 1099s need to be sent to the recipients by January 31, 2017. In addition, W2s need to be filed with the Social Security Administration and State of NJ by January 31, 2017. This is a change from last year when the deadline was February 28th.
- All payments to sub-contractors in excess of $600 need to be issued a Form 1099-MISC. Only recipients of payments that are not corporations should be sent a 1099. Each sub-contractor should fill out a form W-9 found on the IRS website www.irs.gov so that the 1099s can be properly prepared. Failure to have correct information on the 1099-MISC may result in penalty to the issuing company.
2017 Tax Reminders:
- The United States Citizenship and Immigration Services ("USCIS") announced that it released a newly revised Employment Verification Form, Form I-9 on November 22, 2016. Employers are required to use the Form I-9 to verify the identity and employment authorization eligibility of their employees. The new Form I-9 will become mandatory on January 22, 2017.
- Driver’s license information now required on some state e-filed returns. New York, Ohio, and Alabama now require this information to be obtained by the tax preparer and included on the tax return. Some states assign e-filing taxpayers a personal identification number (PIN) that requires a driver’s license or state ID number for returns filed through a state-maintained filing portal, commercial tax preparation software, or both. Illinois, for example, requires an Illinois-issued driver’s license or state ID to obtain a PIN, or taxpayers may (and first-time filers must) e-file using their driver’s license or state ID information. A number of states request rather than require the information for 2016 and advise that providing it may reduce return processing time. A number of states request rather than require the information for 2016 and advise that providing it may reduce return processing time. Preparers conducting remote dealings with taxpayers, especially known personally to them, may not have this information on file and may have to request it from clients, adding to the time required to file the return. They may also have to answer clients’ questions about it.