Tax Updates

Latest Tax News as of May 1, 2013:

EIN Theft : The Internal Revenue Service is taking steps to educate employers about EIN theft. An IRS official announced recently that an Internal Revenue Service team was formed to address what to do when an employer finds that its identification number was stolen or used fraudulently. The IRS will issue notices to employers to verify the accuracy of wages and income tax withholding if a tax return is flagged as possibly fraudulent. To report EIN theft, employers are instructed to visit the IRS website and search for “identity theft”. Employers should also contact the Federal Trade Commission, the Social Security Administration, and credit bureaus in the event of EIN theft.

Arkansas state withholding: According to a bill signed on April 22 by Governor Beebe, Arkansas income tax rates will be restructured effective January 1, 2014. The income tax rates will be decreased in the lowest and highest tax brackets. Complete information will be released from the state at a later date.

Delaware state withholding: A bill signed on March 28 by Governor Markell decreases the income tax rate for individuals with earnings greater than $60,000.00 to 6.60% effective January 1, 2014. This bill corrects a previously announced rate of 5.95% for this bracket.

Kansas state unemployment: According to a bill signed on April 16 by Governor Brownback, the unemployment taxable wage base will be $8,000.00 in 2014 and will rise to $12,000.00 in 2015.