W-2C Efficient Corrections: How to Handle Errors Discovered After Filing
Form W-2 is one of the most important information returns employers issue, summarizing wages paid and taxes withheld for each employee. But what happens when you discover an error after filing? That’s where Form W-2c, Corrected Wage and Tax Statement, comes into play. What Is Form W-2c? Form W-2c is used to correct errors on […]
How to Reconcile Form 1042 With Your 1042-S Filings
Reconciling Form 1042 (the annual withholding tax return) with your Form 1042-S filings is crucial to ensure consistency, avoid IRS notices, and demonstrate full compliance with Chapter 3 and Chapter 4 withholding requirements. Here’s a step-by-step guide to help you reconcile Form 1042 with Forms 1042-S: Step-by-Step Reconciliation Process Step 1: Understand the Role of […]
W-2 Box 12 Codes
W-2 Box 12 Codes and Their Meanings Code What It Stands For Explanation A Uncollected SS tax on tips Tax owed on tips that weren’t collected from the employee B Uncollected Medicare tax on tips Similar to A, but for Medicare C Taxable cost of group-term life insurance > $50,000 Value of employer-paid coverage over […]
State of Tennessee and Form 1099-K compliance
The State of Tennessee mandates the filing of Form 1099-K with its Department of Revenue, regardless of whether any state tax was withheld. This requirement applies to payment settlement entities, third-party settlement organizations, electronic payment facilitators, and other entities that file Form 1099-K with the IRS. Filing Requirements Only Form 1099-K is required to be […]
Understanding the Combined Federal/State Filing Program
The Combined Federal/State Filing Program is a voluntary partnership between the IRS and participating states that allows filers to send certain information returns (like Forms 1099) just once to the IRS, and the IRS will forward the data to participating state tax agencies. The goal of the CF/SF program is to reduce duplicate filing and […]
Implications of IRS-ICE Data Sharing
The IRS-ICE data-sharing agreement signed on April 7, 2025, is a historic and controversial shift in U.S. tax and immigration policy. It has broad implications for how information returns—including Forms 1042-S, 1099, and W-2—are filed, verified, and enforced. Overview of the Agreement Signed by: Treasury Secretary Scott Bessent and DHS Secretary Kristi Noem Effective Date: […]