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| NPRC Website Announcement |
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| NPRC invites state and federal agency partners to post notices and announcements intended for employers and payroll service providers. There is no charge for this service. |
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| March, 2008 |
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| Federal Regulation of Payroll Service Providers |
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Senator Snowe introduced S. 1773, which would regulate payroll service companies. The bill reflects NPRC recommendations, although members continue to pursue a regulatory mandate to require payroll service providers to make routine disclosures to clients.
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The IRS Taxpayer Advocate recommended legislation to Congress in January 2008 to have the IRS regulate payroll service companies. We wrote to the Taxpayer Advocate to announce a strengthened proposal: The IRS should require disclosures, and make EFTPS mandatory for Reporting Agents, to enable clients to confirm tax deposits made on their behalf.
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| Federal Regulation of Payroll Service Providers |
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| The 2007 Small Business and Work Opportunity Tax Act broadened the scope of ‘Return Preparer’ provisions to include employment tax returns, and made “preparers” liable if taxpayers take unreasonable positions. NPRC met with IRS attorneys, as the “should have known” standard may lead to expectations that payroll service providers challenge questionable client input. Reporting Agents should be excluded from the regulations, under the category of providing “mechanical assistance”. |
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| January, 2007 |
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| IRS announces online e-services available soon for Reporting Agents |
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| Reporting Agents will soon have access to the IRS e-services suite of web-based products tailored to meet your clients needs. These services will be available 24 hours a day, 7 days a week from just about any computer with an internet connection. You and/or your designated employees can start the registration process now and begin taking advantage of e-services as early as May 2007. Learn more... |
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| September, 2006 |
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| NPRC Comments on 944 Tax Return Program |
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| NPRC provided formal comments on the annual 944 tax return program, suggesting that the burden reduction measure should be implemented on a voluntary basis, and that Reporting Agents should be able to opt out on behalf of clients. |
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| May, 2006 |
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| The Spring 2006 IRS/SSA Reporter warns employers that they remain responsible for the timely and accurate payment of all employment taxes, even if they outsource payroll tax administration to a payroll service provider. |
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| February, 2006 |
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| NPRC Provides Testimony to the IRS Oversight Board |
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| NPRC suggested expansion of the e-file goal to include all transactions with the IRS, instead of only tax return filing, and further review of IRS measures of taxpayer burden reduction related to the new Form 944 program. |
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| July, 2005 |
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| Revenue Procedure 2005-39 simplifies employment tax filing |
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| The Internal Revenue Service has issued new rules allowing corporate officers or duly authorized agents to sign employment tax forms by facsimile, including alternative signature methods such as computer software programs or mechanical devices. |
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| May, 2005 |
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| NPRC hand-delivered a letter to IRS Commissioner Everson to express concerns with the continued exclusion of Reporting Agents from the IRS electronic services (e-services) program. |
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| NPRC met with officials from the IRS Office of Professional Responsibility in May to discuss the case for establishing a new category or designation of tax professional specializing in employment tax administration. |
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NPRC Expresses Concerns Regarding the Proposed Annual 941 (944) |
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| NPRC members wrote to express concerns on the proposed annual Form 944, which was designed to reduce taxpayer burden; e.g., that Form 944 may instead impose substantial increases in burden if implemented on a mandatory basis. NPRC suggested that designated annual filers be permitted to continue to file quarterly if they so choose; at least for those who file and pay electronically. |
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| July, 2003 |
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| New IRS Reporting Agents (RAF) Page |
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| A new IRS RAF website provides comprehensive information about Reporting Agents, including key Revenue Procedures, publications, authorization forms, related links and details on how the RAF works. |
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| November, 2002 |
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| File-Edit Tips for Payroll Services |
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| The Social Security Administration provided recently suggested "File-Edit Tips for Payroll Services",which include W-2 reporting edits and program features that are recommended for payroll service providers. With some exceptions such as reasonableness checks against the prior year, the suggestions are best implemented through use of the SSA's free Accuwage software. |
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