# Presentation: 663350

## 2006 CHANGESTOTAX FORMS

## What’s Changedfor 2006???

-   Form W-2
-   Form W-2c
-   Form 4852
-   Form 941
-   Form 944
-  Form 940

**Notes:**
This is another test note.

## 2006 Form W-2 Changes

- Box e — New Suffix Field
- Box 12 — New Codes AA and BB
- Back of Copy 2 — Employee Instructions
- Data Entry Reminder — Decimal Point and Cents are Required

## Slide 5

## Slide 6

## Form W-2c Changes

- Revised — January  2006
- Box c — SSN Corrections — ADDED
- Box e — Suffix Field — ADDED
- Magnetic Media Filing — ELIMINATED
- Online Filing — Available on SSA Website

## Slide 8

## Form W-3c Changes

- Revised — January  2006
- Box c — Deleted “Section 218” Checkbox
- Box c — Added “944/944-SS” Checkbox

## Slide 10

## Form 4852 Changes

- Revised in December 2005.
- Used for Missing or Incorrect Form W-2 or Form 1099-R.
- Added Checkboxes for Form ID.
- W-2 Filers Should Review Next Year’s Social Security Statement.

## Slide 12

## Form 941 Changes

- Title Change—“QUARTERLY”
- Lines 7f & 7g—“(attach Form 941c)”
- Line 12—Credit Card Payments
- Caution—BOTH Pages Must Be Completed.
- Line 16—Added “or Stopped Paying Wages.”
- Alternative Signature  [R. P.  2005-39]

## Slide 14

## Slide 15

## NEW Form 944

- ANNUAL Employment Tax Return
- Scannable
- Small Employers [< = $1,000 in TOTAL Tax]
- Notified by IRS
- EXCEPTIONS  [Call 1-800-829-0115]
- E-file
- Expected Liability EXCEEDS $1,000
- Deposit Rules Apply
- Credit Card Payments

## Slide 17

## Slide 18

## Changes to Form 940“Plain & Simple”

- Completely Redesigned for 2006
- Plain Language
- Form 940, Part II — DELETED
- Exempt Payments — Checkboxes
- Schedule A — MultiState/Credit Reduction
- New Payment Voucher
- Form 940-EZ Discontinued

## The new Form 940 for 2006 – “Plain & Simple”

## The new Form 940 for 2006 –  “Plain & Simple”

- New check boxes in top right corner
- No more A, B, C, questions
- Will promote accuracy, reduce unnecessary correspondence

## The new Form 940 for 2006 –  “Plain & Simple”

- No more hand-written explanations of exempt payments required
- Check boxes capture exempt payments

## The new Form 940 for 2006 –  “Plain & Simple”

- New section for computing adjustments
- Replaced old Part II, lines 1-6 with new Part 3 (lines 9, 10 & 11)

## The new Form 940 for 2006 –  “Plain & Simple”

- New Schedule A
- Part 1 for multi-state employers
- Simplifies the process -  Just check the boxes to tell us where you were required to pay state unemployment tax.
- Part 2 for credit reduction information
- Will simplify computation, increase processing accuracy, and reduce unnecessary taxpayer correspondence.

## The new Form 940 for 2006 – Schedule A - “Plain & Simple”

## The new Form 940 for 2006 –  “Plain & Simple”

- Form 940-V Payment Voucher removed from form
- Less likelihood of being detached
- Will expedite processing, prevent unnecessary correspondence

## Next Steps

- Completed design phase
- On track for 2006 release of new Form
- Working with software developers to ensure consistent format
- Processing of new Form 940 begins in January, 2007

## 2006 Changes to Forms 1098/1099

- Form 1098-C
- 4 Boxes Added
- Increased to Full Page
- Form 1098-T  [R.P.  2005-50]
- Change Accounting method (Paid vs. Billed)
- Form 1099-R
- Codes “V” & “W” Added (Roth Distributions)
- NO NEW FORMS for 2006
- Magnetic Media  [Pub. 1220]
- 2006—No Diskette
- 2008—No Tape

## PROPOSED ChangestoTaxForms

## 2007 Form W-2

- PROBLEM — Employee’s SSN is Visible
- 				  in Window Envelopes
- PROPOSAL — Move SSN to Box a.
-                             Relocate Box a.
- New Problems???
- COMMENTS — Send Comments to:
-                             taxforms@irs.gov.
-              [Subject Line = “Forms Comment”]

**Notes:**
NOTE:  The asterisk must be included in the address.

## Slide 31

## 94X PROJECT 

- Office of Taxpayer Burden Reduction
- 2008 Target
- CURRENT — Adjustments  [941c]
- PROPOSED — Amendment  [941X]
- COMMENTS — Send Comments to:
-                             taxforms@irs.gov.
-     [Subject Line = “Forms Comment”]

**Notes:**
NOTE:  The asterisk must be included in the address.

## QUESTIONS ???

- Send comments to:  Gerald.P.Fournier@irs.gov