New Taxpayer Information Validation Program Implementation Guide

A key element and best practice in the newest electronic filing systems is a means to improve the accuracy of returns and payments.  Payroll service firms electronically send critical taxpayer entity information such as Employer Identification numbers, business names, tax rates, assigned filing schedules, and other variables that affect the processing of tax returns.

Such programs serve to verify or correct taxpayer information before a tax return or payment becomes due, minimizing errors in tax return and payment processing.  NPRC has prepared an implementation guide to explain how these programs work and to establish standard data formats that can be used by all states and service providers.

Originally from Government Corner — State

NPRC Recommendations for State Employer Withholding Electronic Filing Systems

NPRC has developed separate design recommendations for state electronic filing systems for withholding taxes. Included are suggestions for technical standards, program features, pre-filing taxpayer information verification programs, enrollment requirements, edits appropriate to employment taxes and more.

Originally from Government Corner — State

NPRC Presents Comprehensive Recommendations for State Electronic Filing Systems

NPRC members presented comprehensive design recommendations for state electronic filing systems to state tax officials at the annual Federation of Tax Administrators Technology conference, addressing technical standards and general program features, such as pre-filing applications designed to improve data accuracy. There is a separate presentation, and detailed recommendations paper.

Originally from Government Corner — State

Email Fraud Alert!

A fraudulent email purporting to be from the National Payroll Reporting Consortium, Inc. (NPRC) began circulating nationwide.

IRS announces online e-services available soon for Reporting Agents

Reporting Agents will soon have access to the IRS e-services suite of web-based products tailored to meet your client’s 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...

NPRC Comments on 944 Tax Return Program

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.

NPRC expresses concerns on 'mandatory' data elements in Alaska's wage reporting system

DLWD was asked to make geographic and occupational codes in wage reports 'optional', so that otherwise-valid reports can be accepted. As presently defined, the Department's wage reporting system would reject wage reports that were missing geographic and occupational codes.

Florida Plans Major Changes to Wage Reporting

NPRC members met with the Florida agency to discuss their plans for a new UI wage and tax filing system, and reporting of wages paid in other states. Florida is the first state to consider such reporting.

Puerto Rico Treasury Annual W-2 forms

NPRC members asked the Puerto Rico Treasury to change its requirements for 'sequence numbers' associated with annual W-2 forms (499R-2/W-2PR). The Treasury (Hacienda) said that it will require each employer to have a single range of numbers, which is difficult if a client has many sites, or has accounts with more than one payroll processor.

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.

NPRC Provides Testimony to the IRS Oversight Board

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.