Starting in January 2023, the Internal Revenue Service (IRS) and Social Security Administration (SSA) will implement several significant changes to how they process both electronic and paper tax forms 1099, W-2, and 1095.
- Affordable Care Act forms 1095-B and 1095-C will now have an automatic 30-day extension applied for furnishing recipient copies. Industry experts expect this change to be permanent starting in 2023.
- The state of Rhode Island is also permanently extending its furnishing deadline for 1095 forms to March 2nd and its state filing deadline to March 31st.
- Form W-2 hasn’t changed significantly in Tax Year 2022, but the underlying filing system has received a complete overhaul. The Social Security Administration has stated that it will no longer allow scripting and screen scraping for submitting EFW2 files and filers must instead switch to a more complicated API. This may require filers to look for W-2 filing software alternatives given the short lead up to the deadline.
- For 1099 forms, the IRS has released an updated form layout that now includes “FATCA filing requirement” as a numbered box. According to Ken Ham, Founder of tax software company BoomTax, “This will affect the physical and electronic layout of 1099 files. As a result, many software providers and filers may have trouble adjusting their systems to meet the Jan 31st deadline.” This change will affect forms 1099-MISC and 1099-DIV. Forms 1099-INT will retain its original format and Form 1099-NEC does not have a FATCA filing requirement box.
- In a break from previous years, the IRS has also released new versions of the 1099 forms where filers can write in the last 2 digits of the tax year.
For more information about the new tax year and the updated forms, follow @boomtax on Twitter, @boomtaxofficial on Facebook, and visit www.boomtax.com. Get started on your tax filing today and ensure that you’re complying with the latest laws and requirements.
Contact:
Michaela Porterfield
844-999-2666
[email protected]
About BoomTax:
BoomTax offers a range of software solutions for businesses and individuals, including tools for filing forms 1099-MISC, 1099-NEC, 1099-DIV, 1099-INT, W-2, 1094-C, 1095-C, 1094-B, and 1095-B. The company’s intuitive platform and helpful customer support team make it easy for users to accurately and efficiently file their information returns.
SOURCE: BoomTax
Learn more here https://www.accesswire.com/731136/5-Significant-Tax-Year-2022-Changes-Coming-to-Forms-1099-W-2-and-1095
