[WardFive] Withholding Form Changes

Withholding Form Changes

Posted on July 21, 2016 by mytaxdc

There are some important changes to the Withholding forms for the upcoming tax year. As of November 1, 2016, Withholding booklets will no longer be mailed and will be made available online at MyTax.DC.gov. The 2016 FR-900B will be the last reconciliation form filed and it is due by January 31, 2017.  In addition, the new 2017 FR-900A will be accessible online.

To report backup or income tax withholding on non-payroll payments such as pensions, annuities, and gambling winnings, use Form FR-900NP only. In the event of an overpayment, a credit can be carried forward or a refund can be requested. Refunds will be issued by paper check once approved.

Another important change is that all existing monthly filers will be converted to quarterly filers (existing quarterly and annual filers will remain the same). However, payments will continue to be due by the 20^th of each month. There will be an option of bulk filing the FR-900Q via MyTax.DC.gov beginning with the quarterly return due on April 30, 2017.

Below are the due dates for the quarterly returns:

The Quarter includes	Quarter Ends	Form FR-900Q is Due
1.  January, February, March	March 31	April 30
2. April, May, June	June 30	July 31
3. July, August, September	September 30	October 31
4. October, November, December	December 31	January 31

Lastly, please note the following due date:

§  Due date for the 2017 FR-900A and 2017 FR-900P is January 31, 2018 (a new FR-900P, Payment Voucher for Withholding Tax will be available).

You can view the new forms by clicking the links: 2016 FR-900A, 2016 FR-900B, 2017 FR-900A, 2017 FR-900NP, 2017 FR-900Q,  2017 FR-900P

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MyTax.DC will begin to replace eTSC

Posted on July 7, 2016 by mytaxdc

MyTax.DC, the Office of Tax and Revenue's (OTR) new tax portal will begin to replace eTSC in late October, 2016 offering all the benefits of the existing system, along with a host of new functionalities. MyTax.DC will make paying and filing taxes in the District easier, simpler and more efficient than ever before. The initial application will include individual, franchise and withholding taxes as well as registration for businesses. Other taxes and fees will remain in eTSC until they are converted to the new integrated tax system over the next 2 ½ years. eTSC and MyTax.DC will be cross linked for taxpayers needing to perform multiple transactions for converted and non-converted taxes.

Below is a breakdown on how MyTax.DC is an enhancement from eTSC.
MyTax.DC

§  User friendly and fewer clicks to process returns electronically.

§  Faster access to web profile.

§  Allows taxpayers to be self-sufficient online; can do everything on their own.

§  Eliminates the middleman and will decrease the need to call customer service.

§  Businesses will have enhanced capabilities to file returns including scheduling advanced payments.

§  Refund link to view refund and return status available.

§  Able to store bank accounts for multiple accounts, as well as use credit cards to make payments.

§  Able to make quick payments without logging into system.

§  Able to schedule payments.

§  Able to submit requests for new accounts.

§  Able to create a master login and add users to accounts.

§  Allows third parties to access accounts with permission from taxpayers/account administrators.

§  Able to update account information (i.e., mailing address, authorized users, etc.)

§  Web feature which allows taxpayers to ask questions online and receive a quick response from customer service (two-way communication).

MyTax.DC will first address business functions for franchise taxes and withholding tax including registration. Individual Income Tax functions will be live in January, and Sales and Use taxes will be live in October, 2017. OTR will provide specific updates on the development of MyTax.DC within the next few weeks.

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5 Things You Need to Know About MyTax.DC

Posted on June 30, 2016 by mytaxdc

Below are the top 5 things you need to know about MyTax.DC which will launch in November 2016.

1. Self-sufficiency: MyTax.DC will allow you the taxpayer to be more self-sufficient on the internet in the convenience of your home or place of business. With the taxpayer self-service options, you can update your name, address, and open and close tax accounts. These options are available to individuals, as well as businesses.

2. Online access: On Mytax.DC you will be able to access recent payment activity, return activity, schedule and receive notifications for payments and you can file your return electronically.

3. View and print copies of correspondence: You will receive electronic copies of the Office of Tax and Revenue's correspondence through MyTax.DC.

4. Access client accounts: Accountants and/or tax preparers will be able to access client accounts (with clients permission) using one set of credentials.

5. Provide daily updates: Lastly, MyTax.DC will provide daily updates on account statuses, notices sent and account transactions.

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Do You Use Your SSN to Access Your D.C. Withholding Account?

Posted on June 23, 2016 by mytaxdc

In the previous blog post, the Office of Tax and Revenue (OTR) mentioned the changes to its 2017 Withholding forms and requirements.  In order to make the process smoother for businesses/employers with the implementation of MyTax.DC, debuting in November 2016, OTR will require registering with the IRS for a Federal Employer Identification Number (EIN) just as an employer must do to have a federal withholding tax account.

Businesses/employers who currently use their SSN to access their withholding accounts on eTSC will need to have their EIN beginning January 1, 2017. Those businesses/employers using their SSN for a District withholding account will receive a notice in early August asking them to obtain and report their EIN so the account can be converted to the new system correctly.

To register with the IRS for an EIN please go to the following link, https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers-eins.

– D.C. Office of Tax and Revenue

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The District of Columbia To Make Changes to 2017 Withholding Forms and Requirements

Posted on June 21, 2016 by mytaxdc

The District of Columbia Office of Tax and Revenue (OTR) is making changes to its withholding filing requirements and tax returns for the 2017 filing year. To reduce burden for withholding filers, we are more closely aligning with the federal 941 process.

Going forward, taxpayers who file the Employer/Payor Withholding Tax Monthly Return, FR900M will not be required to file monthly withholding tax returns. However, they will be required to file the new Quarterly return, FR900Q. Monthly Payment due dates will continue as today, the 20^th of the following month.

Another change will be the option to bulk file using FR900Q which wasn't an option previously.

To withhold income taxes for the District of Columbia, taxpayers must be registered with OTR. Those entities that are not registered, can file the FR-500 Combined Business Tax Registration Application online at http://otr.cfo.dc.gov/page/new-business-registration.

Also, beginning this fall, another key feature will be a new standalone annual (Non-Payroll) return, FR900NP. This new component is in alignment with the Federal regulations, IRS Form 945, and can be filed on-line through the new tax portal, MyTax.DC. Examples of Non-Payroll only taxpayers are financial institutions making 401K or pension distributions.

There are no changes to the 2016 FR900A and FR900B for the 2016 filing year.

Stay tuned for further updates.

– D.C. Office of Tax and Revenue

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MyTax.DC Coming in October 2016

Posted on June 13, 2016 by mytaxdc

Last year the Office of Tax and Revenue (OTR) successfully implemented the first phase of its changeover to a new tax system. We have been working diligently on Rollout 2 (R2).

I am excited to announce that R2 will be launched in November. R2 of the project will include Corporate and Unincorporated Franchise, as well as new Withholding reporting options and forms. It will also entail MyTax.DC, a new portal that will allow individuals and businesses to access many new services electronically, such as:

§  Account information

§  Transaction history

§  Payment plans

§  Payments due 

The new online services represent the many ways that OTR is at the forefront of making tax filing simpler and easier.

As we move forward, updates will be posted regularly via this blog, as well as other communication channels.  I encourage you to subscribe to our blog to stay abreast of new developments.

Sincerely,

Stephen Cordi
Deputy Chief Financial Officer
Office of Tax and Revenue

 

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