2023 Tax Returns: Deadlines and New Developments – for Employers

As 2024 gears up, it's time for employers to prepare for the upcoming tax season. Here are some important changes and helpful reminders as you begin to prepare information returns for employees and independent contractors.

New E-Filing Thresholds

As of February 2023, the IRS made changes to Regulations section 301.6011-2 (Treasury Decision T.D. 9972). This amendment lowers the limit to 10 for employers who are required to electronically file certain information returns.

For an employer or issuer to determine whether they need to file information returns electronically, they can add up the total number of information returns and Forms W-2 they must file within a calendar year. If the total equals or exceeds 10, they are required to file all of them electronically. This new requirement applies to information returns that are due to be filed in calendar years starting from 2024.

It's important to note that corrected information returns should not be included when calculating the number of information returns mentioned above.

1099-B Updates
Form 1099-B was updated in 2023 to remove Copy C for Payer. Copy C has been discontinued including the Instructions for Payer on the back.

1099- PATR Updates

Form 1099-PATR was converted to continuous use. Both the form and instructions will only be updated as needed. For the most recent version, visit the irs website.

W-2 Form Updates
There have been no actual changes made to the W-2 form, but the annual amounts have been indexed for inflation. For tax year 2023:

• Box 3 (Social Security Wages) should not exceed $160,200.
  
• The total of Box 3 (Social Security Wages) plus Box 7 (Social Security Tips) should not exceed $160,200.
  
• Box 4 (Social Security Tax withheld) should not exceed $9,932.40.
  
• The Household Employer minimum to report is $2,600.
  
• Box 10 dependent care benefits is
  • $5,000 for single filers or married taxpayers filing jointly.
  • $2,500 for married but filing separately taxpayers.
    

Updated Tax Deadlines for 2023 Returns

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