July 2011 Monthly GLO Report

April 2011 Monthly GLO Report

April 18 Deadline Approaching.

With the personal tax filing deadline of April 18th less than a week away, the IRS naturally dominates this month’s report.  Among the dozen IRS releases in the past two weeks are the timely April 18 Filing Deadline Approaching; IRS Offers Tips to Taxpayers, April 18 Deadline Approaching; Check IRS Payment Options, and Can’t File on Time? Get an Extension until Oct. 17 and the self serving Winter 2011 Statistics of Income Bulletin Now Available,  Don’t Fall Prey to the 2011 Dirty Dozen Tax Scams,  IRS Reminds Taxpayers to Use the IRS2Go App to Check Refunds; Downloads Top 250,000.  

But there were some very significant releases mixed in.  The most important was IR-2011-31 announcing the Interim Guidance on Informational Reporting of Employer-Sponsored Health Coverage.  The Internal Revenue Service issued interim guidance to employers on informational reporting on each employee's annual Form W-2 of the cost of the health insurance coverage they sponsor for employees. The IRS is also requesting comments on this interim guidance. The IRS emphasized that this new reporting to employees is for their information only, to inform them of the cost of their health coverage, and does not cause excludable employer-provided health coverage to become taxable; employer-provided health coverage continues to be excludable from an employee's income, and is not taxable.  http://www.irs.gov/newsroom/article/0,,id=237870,00.html

If you are the type who is interested in how the IRS thinks, you’ll enjoy IR-2011-38 Prepared Remarks of IRS Commissioner Doug Shulman at the National Press Club.  This transcript of a speech includes the view of the future as presented by the Commissioner.  If this becomes reality it could have a dramatic effect on the world of payroll.  Just think about due dates for W-2s and 1099s moving to early January… http://www.irs.gov/newsroom/article/0,,id=238204,00.html

US Senate Votes to Repeal Expanded 1099-MISC Reporting.

On April 5th the US Senate voted 87-12 to pass H.R.4 - the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 without amendment.  This allows the bill to be passed to the President for his signature; which he is expected to do. 
http://thomas.loc.gov/cgi-bin/bdquery/z?d112:HR00004:@@@L&summ2=m&#summary

US Department of Labor debars Seattle-based federal contractor for violating minimum wage, overtime and record-keeping laws.

SEATTLE — The U.S. Department of Labor has debarred HWA Inc., President John Wood and Vice President Barbara Wood from future government contracts for three years, due to significant and repeated violations of the McNamara-O'Hara Service Contract Act and the Contract Work Hours and Safety Standards Act. Seattle-based HWA provided security services as a contractor to various federal facilities, government offices and public works projects in the states of Washington, Oregon, Idaho, Missouri and New York.

This debarment action is based on HWA's history of violations concerning the minimum wage, overtime and record-keeping provisions of the SCA and CWHSSA. Since 2001, the Labor Department's Wage and Hour Division has conducted more than 15 investigations of HWA, finding significant back wages were owed to hundreds of workers nationwide.  11-0262-NAT http://www.dol.gov/opa/media/press/whd/WHD20110262.html

Treasury Secretary Timothy Geithner Sends Debt Limit Letter to Congress

Secretary Geithner sent a letter to Congress on 4/4/2011 regarding the debt limit.  The treasury Department projects the debt limit will be reached no later than May 16th.  He outlines some “extraordinary measures” that may be taken by the Treasury to temporarily postpone the date, but those would only extend the date to about July 8th.

“As Secretary of the Treasury, I would prefer to avoid resorting to these extraordinary measures. The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and our obligations.

If Congress does not act by May 16, I will take all measures available to me to give Congress additional time to act and to protect the creditworthiness of the country.”  Read the letter here  http://www.treasury.gov/connect/blog/Pages/letter-to-congress.aspx

From USA.gov, the U.S. government’s official web portal

On the lighter side of government, USA.gov offers a variety of items of interest.  This month for example you can read tips for Spring Break Travel Abroad, learn your Rights under the New Healthcare Law, watch NASA video of the Discovery launch or get some gardening tips.  Did you know it has been 150 years since the American Civil War began? The link is on USA.gov http://www.nps.gov/features/waso/cw150th/index.html

I must bring forward a day that has become very important for me – April 22nd – Earth Day.  USA.gov has a link to every Earth Day celebration in the countrWhen my wife and I were married 22 years ago we were blissfully unaware of Earth Day.  We have come to enjoy the whole Earth celebrating with us !)

In Georgia

This week the APA released a Special Update on States Conforming to Federal Tax Treatment of Health Care Benefits for Adult Children.
More states have moved to conform to the federal tax treatment of health care benefits for employees' children under age 27.  This leaves six nonconforming states: Georgia, Hawaii, Massachusetts, New Jersey, South Carolina, and Wisconsin. 

Georgia DOR to Launch Debit Card Pilot Program

ATLANTA—The Department of Revenue announced today (April 5th) it will launch a Debit Card Pilot Program later this week that it anticipates will eventually replace mailing of Georgia income tax paper refund checks.  The debit cards will be mailed to select taxpayers who elected to receive a 2010 Georgia income tax paper refund check. Taxpayers who chose electronic direct deposit of their income tax refund will continue to receive their refunds electronically.  https://etax.dor.ga.gov/pressrel/DORrel4511.pdf
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November 2010 Monthly GLO Report

Health Care Coverage Reporting Requirement Delayed Until 2012. The IRS has issued a draft Form W-2 for 2011 and has announced (Notice 2010-69) that it will defer the new requirement for employers to report the cost of coverage under an employer-sponsored group health plan, making that reporting by employers optional for 2011. The draft form has been posted on the APA website. (IRS.gov)

Social Security Wage Base Remains at $106,800 in 2011. The Social Security Administration has announced that the 2011 social security wage base will be unchanged at $106,800. The maximum social security tax employees and employers will each pay in 2011 is also unchanged at $6,621.60. (ssa.gov)

Pension Plan Limits Remain the Same in 2011. The IRS has announced the cost-of-living adjustments applicable to dollar limits on benefits and contributions under qualified retirement plans, as well as other items, for tax year 2011. While the cost-of-living index increased slightly from 9-30-09 to 9-30-10, it did not make up for the decrease from 9-30-08 to 9-30-09; accordingly, the IRS said the 2011 limits will be the same as those in effect for 2010. (IRS.gov)

Erroneous Refund Checks for Some Paper Form 941 Filers. At the October meeting of the IRS and payroll industry leaders, it was revealed that some employers that file their Forms 941 on paper have received mysterious refund checks from the IRS. The checks are for $1.92 and $2.54.  The checks are a result of improper processing of line 12d, “[HIRE Act] Exempt wages/tips paid to qualified employees March 19-31.” (APA “Inside Washington” and Payroll Currently)

APA Files an Amicus Brief on FICA Taxation of Severance Pay. Following a decision by a U.S. district court in Michigan that severance pay may not be subject to social security and Medicare tax, Mary B. Hevener, APA’s tax and benefits counsel, advised employers to continue to withhold, match, and deposit these taxes on severance pay, as the decision applies only to a small portion of the U.S. and could be overturned. She also advised filing a refund claim (Form 941-X) for these taxes, should this decision be applied nationwide (see “Inside Washington” for August 2010). 

Meanwhile, she filed on behalf of APA an amicus curiae (friend of the court) brief with the Sixth Circuit Court of Appeals, explaining that there is a clear legislative intent on the part of the U.S. Congress for a FICA exemption for severance payments that are “supplemental unemployment compensation benefits,” which are defined in the Internal Revenue Code as “paid because of involuntary separation from the employment of the employer…resulting directly from a reduction in force, the discontinuance of a plant or operation, or other similar conditions.” Conflicts and confusion have come about because of the many inconsistent IRS administrative rulings over a 35-year period.  Read the brief at http://info.americanpayroll.org/pdfs/gov/Quality_Stores_Amicus_Brief.pdf

To find more New Releases from the IRS go to:

http://www.irs.gov/newsroom/
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June 2011 Monthly GLO Report

Social Security News

The Federal Office of Child Support Enforcement (OCSE) had a bunch of news last month.  This month… well here is their monthly newsletter.  It is interesting to see what some look at as newsworthy.  http://www.acf.hhs.gov/programs/cse/pubs/2011/csr/csr1107.pdf

Treasury Secretary Timothy Geithner Meets the Press and Faces the Nation

Now that he has the full attention of Congress and the President, Sec. Geithner takes his message to TV on Meet the Press and Face the Nation.  That message is still the same.  http://www.treasury.gov/press-center/press-releases/Pages/tg1225.aspx

Financial Crimes Enforcement Network

FinCEN offers its Quarterly report on Mortgage Loan Fraud http://www.fincen.gov/news_room/nr/html/20110628.html and proudly announces the sentencing of a former banking chairman.  He had to forfeit $38.5 million for his role in a $2.9 billion fraud scheme… Sounds like he got a good deal to me, except the 30 years in jail part.  http://www.justice.gov/opa/pr/2011/June/11-crm-862.html.

The Department of Homeland Security is hard at work protecting our Maritime Borders. http://www.dhs.gov/ynews/testimony/20110712-zukunft-protecting-maritime-borders.shtm   http://www.dhs.gov/ynews/releases/20110707-maritime-operations-plan.shtml

U.S. Citizenship and Immigration Services (USCIS) celebrated our nation’s birthday with Naturalization Ceremonies.  http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextoid=c462c38bafcd0310VgnVCM100000082ca60aRCRD&vgnextchannel=68439c7755cb9010VgnVCM10000045f3d6a1RCRD

From the US Department of Labor

This month the “bad guys” they caught include Prince George County (MD) ($4.2mil back wages in H-1B case), Farmers Insurance ($1.5mil in back wages to 3500 employees) and P. Gioioso & Sons ($354,000 for repeated OSHA violations).  Secretary Solis released statements on the excessive heat in the country and the June employment numbers (not related).  Grants went to tornado victims in Joplin MO and Massachusetts, Vermont and Illinois for flood victims, laid off workers in CA, and high risk youth in underserved communities.  And the DOL proudly declares they are “undeterred by the Supreme Court’s recent decision to halt the Wal-Mart class action equal pay case”.  http://www.dol.gov/_sec/newsletter/
From USA.gov, the U.S. government’s official web portal

This month USA.gov offers advice prescription drugs, remembers the anniversary of the Americans with Disabilities Act (ADA), and offers advice on applying for American citizenship.  They also are encouraging kids to read this summer at Kids.gov (I know I have, though it has not done much good).  And it is summer, so there are swimming safety tips.

In Georgia

There’s some new Sales and Use tax rates, but the most interesting thing out here to me is they are about to announce the new License plate design!  https://etax.dor.ga.gov/TagContestNotice.aspx _________________________________________

May 2011 Monthly GLO Report

The wave of IRS notices crested with the tax filing deadline, where Taxpayers Set e-File Record as Tax Deadline Approaches; More than 100 Million e-Filed Returns So Far This Year .  Then it was on to prosecuting those who didn’t do it right! IRS Begins Enforcement of New Return Preparer Rules;  IRS Office of Professional Responsibility Prevails on Appeal Against CPA  Then it was time to look forward to the real heavy lifting.

Treasury, IRS Seek Public Input on Certain Employer Provisions of the Affordable Care Act

In IR-2011-50 the “how to” of the Healthcare Reform provisions that come into effect in 2014 are the topic – and the IRS is listening.  Under the Affordable Care Act, employers with 50 or more full-time employees that do not offer affordable health coverage to their full-time employees may be required to make a shared responsibility payment.  By soliciting comments and feedback now, Treasury and IRS are giving all interested parties the opportunity for input before proposed regulations are issued at a later date.  If you want to add your input, go to http://www.irs.gov/newsroom/article/0,,id=239023,00.html . 

The deadline for comments is June 17, 2011.

President Obama Signs Law Repealing Expanded 1099-MISC Reporting.

IRS Releases Draft of Revised Form 941-X.

The IRS has released a draft version of revisions to Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund. The current form is being revised in light of legislative and regulatory developments since it was issued in September 2010.

Supreme Court sets "fair notice" standard for complaints

Employees are now three-for-three in Supreme Court employment law cases this term, now that the High Court has ruled that an employee’s Fair Labor Standards Act complaints don’t have to be written to be protected from retaliation by their employers.  Oral complaints are protected under the Fair Labor Standards Act's (FLSA) antiretaliation provisions the U.S. Supreme Court ruled in a 6-2 opinion (Kasten v Saint-Gobain Performance Plastics, Dkt No 09-834, March 22, 2011, Breyer, S). Resolving a conflict among the circuits, the majority found the scope of the statutory term "filed any complaint" found in FLSA, Sec. 215(a)(3), encompasses oral as well as written complaints. The Court vacated a Seventh Circuit decision that held a discharged employee did not engage in FLSA-protected conduct when he made a verbal complaint about the location of the employer's time clocks, which prevented employees from getting paid for time spent donning and doffing protective gear --in violation of the Act.  Justice Scalia dissented, joined by Justice Thomas. Justice Kagan did not participate.
http://www.supremecourt.gov/opinions/10pdf/09-834.pdf

Treasury Secretary Timothy Geithner Sends Debt Limit Letter to Congress…Again

Secretary Geithner sent a letter to Congress on 4/4/2011 regarding the debt limit.  On 5/2/2011 he sent another letter.  The Treasury Department still projects the debt limit will be reached no later than May 16th.  As he has seen no action in Congress, the “extraordinary measures” he mentioned last month are going into effect 5/6/2011.  He does add that stronger than expected tax receipts should allow them to extend the date to about August 2nd.

“While this updated estimate in theory gives Congress additional time to complete the work on increasing the debt limit, I caution
strongly against delaying action… Delaying action risks a loss of confidence and accompanying negative economic effects.”

http://www.treasury.gov/connect/blog/Documents/FINAL%20Debt%20Limit%20Letter%2005-02-2011%20Boehner.pdf

USCIS Issues Final I-9 Rule Requirements

The US Citizenship and Immigration Services (USCIS) has issued a final rule requiring unexpired documents to prove work authorization.

From the US Department of Labor

News from the DOL will always include some company with some kind of violation and fines.  This month I wanted to bring out something different.  ETA News Release: US Department of Labor provides grant to help Alabama residents recover from severe storms - 11-0653-ATL - [05/04/2011]  WASHINGTON — The U.S. Department of Labor today announced a $10 million National Emergency Grant to assist with cleanup and recovery efforts in the wake of the severe storms, tornadoes, straight-line winds and flooding that struck Alabama last month.

"The scenes of devastation in Alabama are heartbreaking," said Secretary of Labor Hilda L. Solis. "Today's grant will help
the people of Alabama get back on their feet. I am pleased that my department has the opportunity to offer assistance to
clean up and repair the affected communities."

National Emergency Grants are part of the secretary of labor's discretionary fund and awarded based on a state's ability to meet specific guidelines.

http://www.dol.gov/opa/media/press/eta/ETA20110653.html

From USA.gov, the U.S. government’s official web portal

This month USA.gov tells us how to find a farmer’s market, and to Celebrate Older Americans Month.  This week is also Women’s Health Week.  The month ends with Memorial Day.  Did you know that a new celebration was initiated in 2001 called the National Moment of Remembrance?
Join other Americans in a minute of silence at 3:00 PM, local time. If you are driving, turn on your lights.
http://www.usa.gov/Topics/Memorial_Day.shtml

In Georgia

Georgia DOR is looking to change the rules for Electronic Funds Transfer, Credit Card Payments, and Electronic Filing

An Income Tax Division Rule is being proposed by the Department - Rule 560-3-2-.26, entitled "Electronic Funds Transfer, Credit Card Payments, and Electronic Filing."   Interested parties seeking to comment on the proposed Rule should review the notice for further guidance.
The notice and an exact copy and synopsis of the proposed Rule may be found on the Georgia DOR’s website at:
https://etax.dor.ga.gov/inctax/new_regulations.aspx
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 March 2011 Monthly GLO Report