Payroll Tax News LISTSERV
July 2013 Edition
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This bill updates the connection date to the federal Internal Revenue Code (IRC) and other provisions of federal tax law; including the American Taxpayer Relief Act of 2012.  Although this bill retains the connection date of December 31, 2011 for the federal earned income tax credit, all other provisions covered in this law have a connection date of January 3, 2013.  This bill is effective on the 91^st day after adjournment sine die (on or about October 8, 2013).

 

This bill allows the Department to assess penalties when a person fails to file or who files an incomplete or incorrect information return.  The penalty is $50 per information return (W2 or 1099) up to a maximum amount of $2,500.   This bill also allows for penalties for a person who knowingly fails to file or knowingly files an incomplete, false or misleading information return.  The penalty is $250 per information return up to a maximum amount of $25,000.  The effective date of this bill is the 91^st day after adjournment sine die (on or about October 8, 2013), but the bill only affects those information returns issued to the Department on or after January 1, 2014.

 

This bill allows the Department to provide notice to a person by means other than regular mail if the Department and person entitled to notice enter into a notification agreement and there is no other law that expressly prohibits using another means of notification.  This bill had an emergency clause and became effective upon passage.  However, this law only applies to notices given by the Department on or after January 1, 2014.

 

This bill allows an employee of the Department to deliver a Notice of Garnishment to a garnishee in person, by first class mail, certified mail or another method if the garnishee has approved an alternate method.  The Department may not seek sanctions against a non-complying garnishee unless the garnishment has been delivered in person by an employee of the Department or by certified mail.  This bill had an emergency clause and became effective upon passage.

 

This bill eliminates the requirement of the Department to deliver a warrant or a true copy of the warrant with a Notice of Garnishment when garnishing the property of a debtor.  This bill also removes the requirement of a handwritten signature by the person issuing the Notice of Garnishment.  This bill had an emergency clause and became effective upon passage.  However, this law only applies to Notices of Garnishment issued on or after January 1, 2014.