Publication 15 |
2000 Tax Year |
Important Reminders
Electronic Filing
Form 940 and Form 941 may now be filed
electronically. For more information, visit the IRS website at
www.irs.gov or call 1-800-829-1040.
Electronic Deposit Requirement
You must make electronic deposits of all depository taxes (such as
employment tax, excise tax, and corporate income tax) using the
Electronic Federal Tax Payment System (EFTPS) in 2001 if:
- The total deposits of such taxes in 1999 were more than
$200,000 or
- You were required to use EFTPS in 2000.
If you are required to use EFTPS and fail to do so, you may be
subject to a 10% penalty. If you are not required to use EFTPS, you
may participate voluntarily. To get more information or to enroll in
EFTPS, call 1-800-555-4477 or 1-800-945-8400.
See section 11 for more information.
Hiring New Employees
Eligibility for employment.
You must verify that each new employee is legally eligible to work
in the United States. This will include completing the Immigration and
Naturalization Service (INS) Form I-9, Employment
Eligibility Verification. You can get the form from INS offices.
Contact the INS at 1-800-375-5283, or visit the INS Web Site at
www.ins.usdoj.gov. for further information.
New hire reporting.
You are required to report any new employee to a designated state
new hire registry. Many states accept a copy of Form W-4 with employer
information added. Call the Office of Child Support Enforcement at
(202) 401-9267 or access its website at
www.acf.dhhs.gov/programs/cse/newhire for more information.
Income tax withholding.
Ask each new employee to complete the 2001 Form W-4.
Name and social security number.
Record each new employee's name and number from his or her social
security card. Any employee without a social security card should
apply for one. (See section 4.)
Paying Wages, Pensions, or Annuities
Income tax withholding.
Withhold tax from each wage payment or supplemental unemployment
compensation plan benefit payment according to the employee's Form W-4
and the correct withholding rate. (If you have nonresident alien
employees, see section 9.) Withhold from periodic pension and annuity
payments as if the recipient is married claiming three withholding
allowances, unless he or she has provided Form W-4P,
Withholding Certificate for Pension or Annuity Payments, either
electing no withholding or giving a different number of allowances,
marital status, or an additional amount to be withheld. Do not
withhold on direct rollovers from qualified plans. See section 9 and
Pub. 15-A, Employer's Supplemental Tax Guide. Pub. 15-A
includes information on withholding on pensions and annuities.
Information Returns
You may have to file information returns to report certain types of
payments made during the year. For example, you must file Form
1099-MISC, Miscellaneous Income, to report payments of $600 or
more to persons not treated as employees (e.g., independent
contractors) for services performed for your trade or business. For
details about filing Forms 1099 and for information about required
electronic or magnetic media filing, see the 2001 General
Instructions for Forms 1099, 1098, 5498, and W-2G for general
information and the separate specific instructions for each
information return you file (for example, 2001 Instructions for
Forms 1099-MISC). Do not use Forms 1099 to report wages and
other compensation you paid to employees; report these on Form W-2.
See the separate Instructions for Forms W-2 and W-3 for
details about filing Form W-2 and for information about required
magnetic media filing. If you file 250 or more Forms W-2 or 1099, you
must file them on magnetic media or electronically.
Information reporting call site.
The IRS operates a centralized call site to answer questions about
reporting on Forms W-2, W-3, 1099, and other information returns. If
you have questions related to reporting on information returns, call
304-263-8700.
Nonpayroll Income Tax Withholding
Nonpayroll income tax withholding
must be reported on
Form 945, Annual Return of Withheld Federal Income Tax.
Form 945 is an annual tax return and the return for 2000 is due
January 31, 2001. Separate deposits are required for payroll (Form
941) and nonpayroll (Form 945) withholding. Nonpayroll items include:
- Pensions, annuities, and IRAs.
- Military retirement.
- Gambling winnings.
- Indian gaming profits.
- Voluntary withholding on certain government payments.
- Backup withholding.
All income tax withholding reported on Forms 1099 or W-2G must be
reported on Form 945. All income tax withholding reported on Form W-2
must be reported on Form 941, 943, or Schedule H (Form 1040).
Note:
Because distributions to participants from nonqualified
pension plans and some other deferred compensation plans are treated
as wages and are reported on Form W-2, income tax withheld must be
reported on Form 941, not Form 945. However, because distributions
from such plans to a beneficiary or estate of a deceased employee are
not wages and are reported on Forms 1099-R, income tax withheld must
be reported on Form 945.
For details on depositing and reporting nonpayroll income tax
withholding, see the separate Instructions for Form 945.
Backup withholding.
You generally must withhold 31% of certain taxable payments if the
payee fails to furnish you with his or her correct taxpayer
identification number (TIN). This withholding is referred to as backup
withholding.
Payments subject to backup withholding include interest, dividends,
patronage dividends, rents, royalties, commissions, nonemployee
compensation, and certain other payments you make in the course of
your trade or business. In addition, transactions by brokers and
barter exchanges and certain payments made by fishing boat operators
are subject to backup withholding.
Note:
Backup withholding does not apply to wages, pensions,
annuities, IRAs (including simplified employee pension (SEP) and
SIMPLE retirement plans), section 404(k) distributions from an
employee stock ownership plan (ESOP), medical savings accounts,
long-term care benefits, or real estate transactions.
You can use Form W-9, Request for Taxpayer
Identification Number and Certification, to request payees to furnish
a TIN and to certify that the number furnished is correct. You can
also use Form W-9 to get certifications from payees that they
are not subject to backup withholding or that they are exempt from
backup withholding. The Instructions for the Requester of Form
W-9 includes a list of types of payees who are exempt from
backup withholding. For more information, see Pub. 1679, A
Guide to Backup Withholding.
Recordkeeping
Keep all records of employment taxes for at least 4 years. These
should be available for IRS review. Records should include:
- Your employer identification number.
- Amounts and dates of all wage, annuity, and pension
payments.
- Amounts of tips reported.
- Records of allocated tips.
- The fair market value of in-kind wages paid.
- Names, addresses, social security numbers, and occupations
of employees and recipients.
- Any employee copies of Form W-2 that were returned to you as
undeliverable.
- Dates of employment.
- Periods for which employees and recipients were paid while
absent due to sickness or injury and the amount and weekly rate of
payments you or third-party payers made to them.
- Copies of employees' and recipients' income tax withholding
allowance certificates (Forms W-4, W-4P, W-4S, and W-4V).
- Dates and amounts of tax deposits you made and
acknowledgment numbers for deposits made by EFTPS.
- Copies of returns filed, including 941TeleFile Tax Records
and confirmation numbers.
- Records of fringe benefits provided, including
substantiation.
Change of Address
To notify the IRS of a new business mailing address or business
location, file Form 8822, Change of Address.
Private Delivery Services
You can use certain private delivery services designated by the IRS
to mail tax returns and payments. If you mail by the due date using
any of these services, you are considered to have filed on time. The
most recent list of designated private delivery services was published
in August 1999. The list includes only the following:
- Airborne Express (Airborne): Overnight Air Express Service,
Next Afternoon Service, Second Day Service.
- DHL Worldwide Express (DHL): DHL "Same Day" Service,
DHL USA Overnight.
- Federal Express (FedEx): FedEx Priority Overnight, FedEx
Standard Overnight, FedEx 2 Day.
- United Parcel Service (UPS): UPS Next Day Air, UPS Next Day
Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M.
The private delivery service can tell you how to get written proof
of the mailing date. Caution: Private delivery services
cannot deliver items to P.O. boxes. You must use the U.S. Postal
Service to mail any item to an IRS P.O. box address.
Telephone Help
Tax questions.
You can call the IRS with your tax
questions. Check your telephone book for the local number or call
1-800-829-1040.
Help for people with disabilities.
Telephone help is available using TTY/TDD equipment. You may call
1-800-829-4059 with your tax question or to order forms and
publications. You may also use this number for assistance with
unresolved tax problems.
Recorded tax information (TeleTax).
The TeleTax service provides recorded tax information on topics
that answer many individual and business Federal tax questions. You
can listen to up to three topics on each call you make. Touch-tone
service is available 24 hours a day, 7 days a week. TeleTax topics are
also available using a personal computer (connect to
www.irs.gov).
A list of employment tax topics is provided below. Select, by
number, the topic you want to hear and call 1-800-829-4477. For the
directory of all topics, listen to topic 123.
TeleTax Topics
Topic
No. |
Subject |
751 |
Social security and Medicare withholding rates |
752 |
Form W-2--Where, when, and how to file |
753 |
Form W-4--Employee's Withholding Allowance
Certificate |
754 |
Form W-5--Advance earned income credit |
755 |
Employer identification number (EIN)--How to
apply |
756 |
Employment taxes for household employees |
757 |
Form 941--Deposit requirements |
758 |
Form 941--Employer's Quarterly Federal Tax
Return |
759 |
Form 940/940-EZ--Deposit requirements |
760 |
Form 940/940-EZ--Employer's Annual Federal
Unemployment Tax Return |
761 |
Tips--Withholding and reporting |
762 |
Independent contractor vs. employee |
Unresolved Tax Issues
If you have attempted to deal with an IRS problem unsuccessfully,
you should contact the Taxpayer Advocate. The Taxpayer Advocate
independently represents your interests and concerns within the IRS by
protecting your rights and resolving problems that have not been fixed
through normal channels.
While Taxpayer Advocates cannot change the tax law or make a
technical tax decision, they can clear up problems that resulted from
previous contacts and ensure that your case is given a complete and
impartial review.
Your assigned personal advocate will listen to your point of view
and will work with you to address your concerns. You can expect the
advocate to provide:
- A "fresh look" at a new or on-going problem.
- Timely acknowledgement.
- The name and phone number of the individual assigned to your
case.
- Updates on progress.
- Timeframes for action.
- Speedy resolution.
- Courteous service.
When contacting the Taxpayer Advocate, you should provide the
following information:
- Your name, address, and employer identification
number.
- The name and telephone number of an authorized contact
person and the hours he or she can be reached.
- The type of tax return and year(s)
- A detailed description of the problem.
- Previous attempts to solve the problem and the office that
had been contacted.
- A description of the hardship you are facing (if
applicable).
You may contact a Taxpayer Advocate by calling a toll-free number,
1-877-777-4778. Persons who have access to TTY/TTD
equipment may call 1-800-829-4059 and ask for Taxpayer Advocate
assistance. If you prefer, you may call, write, or fax the Taxpayer
Advocate office in your area. See Pub. 1546, The Taxpayer
Advocate Service of the IRS, for a list of addresses and fax numbers.
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