Revenue Procedure 2005-39 simplifies employment tax filing

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.

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.

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.

NPRC Expresses Concerns Regarding the
Proposed Annual 941 (944)

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.

Hurricane Katrina recovery information from OCSE

The state child support enforcement agencies in Alabama, Mississippi, and Louisiana want employers to know that their state disbursement units (SDUs) are open and able to receive child support garnishments from employers. Therefore, employers should continue to send payments to these SDUs as usual.

In an effort to assist these states with the distribution of payments to custodial families that have fled their homes, employers have developed a special form (attached) to capture that information and to email it to the states (see below). The form also contains information about the location of a non-custodial parent who has been dislocated and has a child support order. This information also is valuable to provide to the SDUs.

United States Postal Service (USPS)

Employers are also encouraged to visit the USPS's website at www.usps.com (click on Hurricane Katrina button) to receive the latest information about the status of mail delivery in the affected areas. Changes are occurring daily and USPS updates their website regularly.

State Contact Information

Representatives from the affected states provided updated contact information. This information is provided below:

See also http://www.acf.dhhs.gov/programs/cse/hurricane_katrina/employers.html

NPRC Design Recommendations for Next-Generation Electronic Filing Systems

NPRC members presented recommendations to state revenue agencies at the Federation of Tax Administrators Technology conference. Many states are developing the next generation of electronic filing systems for employment taxes, which raises opportunities for both dramatic improvements and cost savings as well as spectacular failures. NPRC members shared the early results of the first few states to address this area, and provided key design recommendations to assist state developers.