Publication 1220 Released for Tax Year 2013

E-File ProcessingThe IRS has posted Publication 1220 for tax year 2013. It can be downloaded in PDF format from http://www.irs.gov/pub/irs-pdf/p1220.pdf.

This is the first year Publication 1220 will no longer be issued as a Revenue Procedure. It will be a web based document that can be updated during the filing season.  Last year the IRS made changes right into January which made it challenging for organizations to stay compliant and meet filing deadlines. Be sure to check the Section 3 What’s New For Tax Year 2013.

Here are some of the changes for tax year 2013:

1. Form 4419, Application for Filing Information Returns Electronically (FIRE), is now available as a fill-in form through the FIRE System located at https://fire.irs.gov.

2. The FIRE System is available from January 21, 2014, through December 12, 2014. The later starting date is to allow enough time for IRS systems to be updated before electronic files are accepted.

3.  The FIRE Test System is available from November 12, 2013, through February 28, 2014.

4.  Combined Federal/State Filing program – two new states have joined the program bringing the total participating states to 34.

  • Michigan (code 26)
  • Vermont (code 50)

5. Form 1099-MISC, Miscellaneous Income – Foreign tax paid has been added to the Payer “A” Record, Field Position 28-43. This is Amount Code “9”.

6. Form 1099-OID, Original Issue Discount – Foreign tax paid has been added to the Payer “A” Record, Field Position 28-43, Amount Code “9”.

7. Form 1099-K. There are numerous changes to the reporting of this form. Refer to the publication for a detailed list.

8. Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit- Sharing Plans, IRAs, Insurance Contracts, etc. Distribution Code “D”, Record for Annuity payments from nonqualified annuity payments and distributions from life insurance contracts that may be subject to tax under section 1411, has been added to the Payee “B” Record, Field Positions 545-546. This is only valid with codes 1,2,3,4 or 7. Remember, a 1099-R may have multiple Distribution Codes so this is reported in a two character field. If only reporting one code, left justify this field.

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