Nationwide Tax Relief: 844-638-0800

e-News for Payroll Professionals

Latest Updates for Payroll Professionals

As we step into October 2023, there are several noteworthy updates that payroll professionals need to be aware of. This article provides a comprehensive overview of the latest IRS guidelines and policies that could impact your work.

Increased IRS Compliance Efforts

The IRS is ramping up its efforts to ensure tax compliance among high-income earners, partnerships, and large corporations. This move comes in the wake of the Inflation Reduction Act, which has provided the necessary funding for this initiative. The aim is to restore fairness in tax compliance by focusing on high-income individuals and entities that have seen a significant decline in their audit rates over the past decade.

Advanced technology, including artificial intelligence, will be employed to detect tax evasion, identify new compliance threats, and enhance case selection tools. This will help to prevent unnecessary ‘no-change’ audits, thereby reducing the burden on taxpayers.

Expansion of IRS Chatbot Technology

The IRS is also expanding its chatbot technology, which has already served over 13 million taxpayers. This technology provides quick answers to basic questions for taxpayers who have received notices about potential underreporting of their taxes. The latest chatbot feature will assist taxpayers who receive notices CP2000, CP2501, and CP3219A, informing them of discrepancies between the tax information they provided and the information the IRS received from third parties.

Since January 2022, IRS voice and chatbots have helped more than 13 million taxpayers resolve their tax issues, including setting up approximately $151 million in payment agreements. The IRS plans to introduce additional bot technology features in the future to assist taxpayers with more complex issues.

IRS’s Payroll Professionals Tax Center Webpage

To stay abreast of all payroll-related updates, make sure to bookmark and regularly visit the IRS’s Payroll Professionals Tax Center webpage. This page is a treasure trove of hot topics relevant to the payroll community and provides links to draft forms, Tax Withholding Estimator, the Online Tax Calendar, and more.

Electronic Filing of Form 8300

Effective from January 1, 2024, businesses will be required to electronically file Form 8300, Report of Cash Payments Over $10,000. This is a departure from the current practice of filing a paper return. This change is part of the final regulations amending e-filing rules for information returns, including Forms 8300.

New Draft Forms, Instructions, and Publications on IRS.gov

The IRS has also released new draft forms, instructions, and publications. These include:

Draft Forms:

Form 4970 (Draft), Tax on Accumulation Distribution of Trusts
Form CT-1 (Draft), Employer’s Annual Railroad Retirement Tax Return
Form SS-8 (Draft), Determination of Worker Status for Purposes of Federal

Draft Instructions:

Instructions 944 (Draft), Employer’s Annual Federal Tax Return
Instructions 945 (Draft), Annual Return of Withheld Federal Income Tax
Instructions 2678 (Draft), Employer/Payer Appointment of Agent
Instructions 8941 (Draft), Credit for Small Employer Health Insurance Premiums
Instructions W-7 (Draft), Application for IRS Individual Taxpayer Identification Number
Instructions W-8EXP (Draft), Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding and Reporting

Draft Publications:

Publication 1167 (Draft), General Rules and Specifications for Substitute Tax Forms and Schedules

Stay tuned for more updates and ensure that you’re always in compliance with the latest IRS rules and regulations.

Facebook
Twitter
LinkedIn
e-News for Payroll Professionals October 6, 2023 Useful Links: IRS.gov Payroll Professionals Tax Center Employment Taxes Reporting Agents File Employment Tax Forms Employment Tax Publications Online Ordering SSA/IRS Reporter SSA - Employer Web Page Taxpayer Advocate Service Issue Number: 2023-09 Inside This Issue IRS focusing new compliance efforts on high-income earners, partnerships, others abusing tax laws IRS expands chatbot technology – already serving more than 13 million taxpayers Bookmark the IRS’s Payroll Professionals Tax Center webpage Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning Jan. 1, 2024 New draft forms, instructions and publications on IRS.gov 1. IRS focusing new compliance efforts on high-income earners, partnerships, others abusing tax laws Capitalizing on Inflation Reduction Act funding and following a top-to-bottom review of enforcement efforts, the IRS announced the start of a sweeping, historic effort to restore fairness in tax compliance by shifting more attention onto high-income earners, partnerships, large corporations and promoters abusing the nation's tax laws. The new effort will center on adding more attention to the wealthy, partnerships and other high earners who have seen sharp drops in their audit rates during the past decade. Improved technology, including artificial intelligence, will help IRS compliance teams better detect tax cheating, identify emerging compliance threats and improve case selection tools to avoid burdening taxpayers with needless 'no-change' audits. 2. IRS expands chatbot technology – already serving more than 13 million taxpayers The IRS is using Inflation Reduction Act funding to expand its chatbot technology, which quickly answers basic questions for taxpayers receiving notices about possibly underreporting their taxes. The newest chatbot feature will assist taxpayers who receive notices CP2000, CP2501 and CP3219A. These mailings inform taxpayers if the tax information the IRS received from third parties doesn't match the information they provided to the IRS themselves. Rollout of the newest chatbot builds on prior IRS successes using the technology to help improve taxpayer service. Since January 2022, IRS voice and chatbots, both in English and Spanish, helped more than 13 million taxpayers avoid wait times by resolving their tax issues, including setting up roughly $151 million in payment agreements. The IRS plans to continue additional bot technology features in the future to assist taxpayers with more complex issues. 3. Bookmark the IRS’s Payroll Professionals Tax Center webpage Stay up to date with everything payroll related by bookmarking and regularly visiting the IRS’s Payroll Professionals Tax Center webpage. The page is full of hot topics that are of interest to the payroll community. There are also links to draft forms, Tax Withholding Estimator, the Online Tax Calendar and more. 4. Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning Jan. 1, 2024 Starting Jan. 1, 2024, businesses are required to electronically file (e-file) Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return. This new requirement follows final regulations amending e-filing rules for information returns, including Forms 8300. 5. New draft forms, instructions and publications on IRS.gov Draft Forms: Form 4970 (Draft), Tax on Accumulation Distribution of Trusts Form CT-1 (Draft), Employer's Annual Railroad Retirement Tax Return Form SS-8 (Draft), Determination of Worker Status for Purposes of Federal Draft Instructions: Instructions 944 (Draft), Employer's Annual Federal Tax Return Instructions 945 (Draft), Annual Return of Withheld Federal Income Tax Instructions 2678 (Draft), Employer/Payer Appointment of Agent Instructions 8941 (Draft), Credit for Small Employer Health Insurance Premiums Instructions W-7 (Draft), Application for IRS Individual Taxpayer Identification Number Instructions W-8EXP (Draft), Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding and Reporting Draft Publications: Publication 1167 (Draft), General Rules and Specifications for Substitute Tax Forms and Schedules Thank you for subscribing to e-News for Payroll Professionals an IRS email service.

Table of Contents