From pamella.johnson at state.or.us Tue Dec 4 13:45:52 2018 From: pamella.johnson at state.or.us (Pamella Johnson) Date: Tue, 4 Dec 2018 21:45:52 +0000 Subject: [OSSSA218] A Reminder From Our Federal Partners at the IRS Message-ID: <839ec30ff33a4fa586770dfd84b7cef7@v-exchdb01.a4590.pers.state.or.us> Good afternoon Section 218 Employers: Here is a timely news release from the IRS for those of you who utilize online reporting: Security Summit Partners highlight new password guidance, urge taxpayers and practitioners to protect all accounts WASHINGTON - To help protect against cybercriminals stealing identities, the IRS, state tax agencies and the nation's tax industry urged people to review new, stronger standards to protect the passwords of their online accounts. Every individual or tax practitioner who maintains any type of online accounts should use strong passwords to protect against savvy cybercriminals taking over their identities and accessing sensitive tax and financial data. But there's been some new thinking as to what a strong password is. The latest guidance suggests using a passphrase such as a favorite line from a movie or a series of associated words rather than using a password. The idea is to create a passphrase that can be remembered easily and protect the account. This means passwords like - "uE*s3P%8V)" - are out. Longer, personal phrases people can remember - for example, SunWalkRainDrive - are now preferred. The Internal Revenue Service, state tax agencies and the tax community, partners in the Security Summit, are marking "National Tax Security Awareness Week," Dec. 3-7, with a series of reminders to taxpayers and tax professionals. In part three, the topic is creating a strong password. This is especially important for taxpayers and tax professionals who use online accounts involving financial data or even their online account with the IRS or a tax software provider. "The IRS and the Security Summit partners have strengthened our systems to help protect against tax-related identity theft," said IRS Commissioner Chuck Rettig. "To make these defenses even stronger, we need taxpayers and tax professionals to take common-sense steps to protect their data and make it harder for identity thieves. By using better passwords, people can help themselves and the tax community against identity theft." The IRS, like all federal agencies, follows the cybersecurity framework set by the National Institute of Standards and Technology or NIST, which is a branch of the Department of Commerce. NIST last year rethought its guidance on passwords. NIST suggested these three steps to build a better password: * Step 1 - Leverage your powers of association. Identify associated items that have meaning to you. * Step 2 - Make the associations unique to you. Passphrases should be words that can go together in your head, but no one else would ever suspect. Good example: Items in your living room such as BlueCouchFlowerBamboo. Bad example: Names of your children. * Step 3 - Picture this. Create a passphrase that you can picture in your head. In our example, picture items in your living room. The key is to create a passphrase that is hard for a cybercriminal to guess but easy for you to remember. In addition to creating strong passwords, the Security Summit urges taxpayers and tax practitioners to take these additional steps: * Use a different password or passphrase for each account; use a password manager if necessary for multiple accounts. * Use multi-factor authentication whenever possible. Don't rely on the passphrase alone to protect sensitive data. Multi-factor authentication means returning account holders need more than just their credentials (username and password) to access an account. They also need, for example, a security code sent as text to a mobile phone. Email providers and social media outlets, such as Facebook, offer multi-factor authentication options. For tax professionals, some tax software providers will offer multi-factor authentication as an option, and practitioners should use it if it's available. * Change all factory-set passwords for wireless devices such as printers and routers. Again, use strong passphrases to protect access to these devices, which further safeguards sensitive data. The IRS, state tax agencies and the tax industry are committed to working together to fight against tax-related identity theft and to protect taxpayers. But the Security Summit needs help. People can take steps to protect themselves online. Taxpayers can visit the "Taxes. Security. Together." awareness campaign or review IRS Publication 4524, Security Awareness for Taxpayers, for additional steps to protect themselves and their data from identity theft. Tax professionals can get more information through the Protect Your Clients; Protect Yourself campaign as well as the Tax Security 101 series. -------------- next part -------------- An HTML attachment was scrubbed... URL: From pamella.johnson at state.or.us Thu Dec 6 14:51:03 2018 From: pamella.johnson at state.or.us (Pamella Johnson) Date: Thu, 6 Dec 2018 22:51:03 +0000 Subject: [OSSSA218] IRS Warning Related to W-2 Scams Message-ID: Good afternoon Section 218 Employers: Over the course of the past two years several Oregon public employers have fallen victim to a W-2 scam. Below is an update from the IRS on this subject with timely advice on avoiding/reporting this ploy. Pamella Pamella Johnson Oregon State Social Security Administration Oregon Public Employees Retirement System Oregon Public Employees Retirement System *****CONFIDENTIALITY NOTICE***** All information in this email, including attachments, is approved solely for delivery to and authorized use by its intended recipients. Use, dissemination, distribution, or reproduction of this message and/or any of its attachments by unintended recipients is not authorized and may be unlawful. If you are not an intended recipient of this message or an authorized assistant to an intended recipient, please notify the sender by replying to this message and then delete it from your system. Security Summit warns employers: Be alert to identity theft and W-2 scams WASHINGTON - As the 2019 tax season approaches, the IRS, state tax agencies and the nation's tax industry joined together to warn small businesses to be on-guard against a growing wave of identity theft and W-2 scams. Small business identity theft is big business for identity thieves. Just like individuals, businesses may have their identities stolen and their sensitive information used to open credit card accounts or used to file fraudulent tax returns for bogus refunds. Employers also hold sensitive tax data on employees, such as Form W-2 data, which also is highly valued by identity thieves. "Identity theft can be devastating to small businesses, and the IRS continues to see instances where cybercriminals are targeting these groups to obtain sensitive employee information that can be used to file fake tax returns," said IRS Commissioner Chuck Rettig. "And as tax season approaches, the IRS and the Security Summit partners continue to warn employers to be on the lookout for emails asking for sensitive W-2 information, a dangerous scheme aimed at payroll and human resource offices. We encourage small businesses and others to follow some important steps to help protect themselves and their employees." The Internal Revenue Service, state tax agencies and the tax community, partners in the Security Summit, are marking "National Tax Security Awareness Week," Dec. 3-7, with a series of reminders to taxpayers and tax professionals. In part four, the topic is business-related identity theft and scams. Identity thieves have long made use of stolen Employer Identification Numbers (EINs) to create fake Forms W-2 that they would file with fraudulent individual tax returns. Fraudsters also used EINs to open new lines of credit or obtain credit cards. Now, they are using company names and EINs to file fraudulent returns. The IRS has identified an increase in the number of fraudulent Forms 1120, 1120S and 1041 as well as Schedules K-1. The fraudulent filings apply to partnerships as well as estate and trust forms. Businesses, partnerships and estate and trust filers should be alert to potential identity theft and contact the IRS if they experience any of these issues: * Extension to file requests are rejected because a return with the Employer Identification Number or Social Security number is already on file; * An e-filed return is rejected because a duplicate EIN/SSN is already on file with the IRS; * An unexpected receipt of a tax transcript or IRS notice that doesn't correspond to anything submitted by the filer. * Failure to receive expected and routine correspondence from the IRS because the thief has changed the address. Complete trusted customer questions The IRS, state tax agencies and software providers also share certain data points from returns, including business returns, that help identify a suspicious filing. The IRS and states also are asking that business and tax practitioners provide additional information that will help verify the legitimacy of the tax return. These "know your customer" procedures are being put in place and include the following questions: * The name and SSN of the company executive authorized to sign the corporate tax return. Is this person authorized to sign the return? * Payment history - Were estimated tax payments made? If yes, when were they made, how were they made and how much was paid? * Parent company information - Is there a parent company? If yes, who? * Additional information based on deductions claimed. * Filing history - Has the business filed Form(s) 940, 941 or other business-related tax forms? Sole proprietorships that file Schedule C and partnerships filing Schedule K-1 with Form 1040 also will be asked to provide additional information items, such as a driver's license number. Providing this information will help the IRS and states identify suspicious business-related returns. For small businesses looking for a place to start on security, the Federal Trade Commission maintains a Protecting Small Business page which includes a series on cybersecurity and a Cybersecurity for Small Business publication. This is a cooperative effort between the FTC, the National Institute of Standards and Technology, the Department of Homeland Security and the Small Business Administration. Guard against W-2 scam All employers - in both the public and private sectors - also are targets for the W-2 scam that has in recent years become one of the more dangerous email scams for tax administration. These emails appear to be from an executive or organization leader to a payroll or human resources employee. It may start with a simple, "Hey, you in today?" and, by the end of the exchange, all of an organization's Forms W-2 for their employees may be in the hands of cybercriminals. This puts workers at risk for tax-related identity theft. Because payroll officials believe they are corresponding with an executive, it may take weeks for someone to realize a data theft has occurred. Generally, the criminals are trying to quickly take advantage of their theft, sometimes filing fraudulent tax returns within a day or two. This scam is such a threat to taxpayers that a special IRS reporting process has been established. Here's an abbreviated list of how to report these schemes: * Email dataloss at irs.gov to notify the IRS of a W-2 data loss and provide contact information. In the subject line, type "W2 Data Loss" so that the email can be routed properly. Do not attach any employee personally identifiable information data. * Email the Federation of Tax Administrators at StateAlert at taxadmin.org to get information on how to report victim information to the states. * Businesses/payroll service providers should file a complaint with the FBI's Internet Crime Complaint Center (IC3.gov). Businesses/payroll service providers may be asked to file a report with their local law enforcement agency. * Notify employees so they may take steps to protect themselves from identity theft. The Federal Trade Commission's www.identitytheft.gov provides guidance on general steps employees should take. * Forward the scam email to phishing at irs.gov. Employers are urged to put steps and protocols in place for the sharing of sensitive employee information such as Forms W-2. One example would be to have two people review any distribution of sensitive W-2 data or wire transfers. Another example would be to require a verbal confirmation before emailing W-2 data. Employers also are urged to educate their payroll or human resources departments about these scams. The IRS, state tax agencies and the tax industry are committed to working together to fight against tax-related identity theft and to protect taxpayers. But the Security Summit needs help. People can take steps to protect themselves online. -------------- next part -------------- An HTML attachment was scrubbed... URL: From pamella.johnson at state.or.us Fri Dec 14 07:50:15 2018 From: pamella.johnson at state.or.us (Pamella Johnson) Date: Fri, 14 Dec 2018 15:50:15 +0000 Subject: [OSSSA218] IRS Announcement of 2019 Mileage Rates Message-ID: <433cc4e5d5484664ba5ab74f80a58f57@v-exchdb01.a4590.pers.state.or.us> Good morning Section 218 Employers: This morning, December 14, 2018, the IRS announced the 2019 mileage rates for business travel. Please refer to the details below from our federal partners. Thank you. Pamella Pamella Johnson Oregon State Social Security Administration Oregon Public Employees Retirement System Oregon Public Employees Retirement System *****CONFIDENTIALITY NOTICE***** All information in this email, including attachments, is approved solely for delivery to and authorized use by its intended recipients. Use, dissemination, distribution, or reproduction of this message and/or any of its attachments by unintended recipients is not authorized and may be unlawful. If you are not an intended recipient of this message or an authorized assistant to an intended recipient, please notify the sender by replying to this message and then delete it from your system. IRS issues standard mileage rates for 2019 WASHINGTON - The Internal Revenue Service today issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: * 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018, * 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018, and * 14 cents per mile driven in service of charitable organizations. The business mileage rate increased 3.5 cents for business travel driven and 2 cents for medical and certain moving expense from the rates for 2018. The charitable rate is set by statute and remains unchanged. It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Notice-2019-02. The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. These and other limitations are described in section 4.05 of Rev. Proc. 2010-51. Notice 2018-02, posted today on IRS.gov, contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan. -------------- next part -------------- An HTML attachment was scrubbed... URL: From pamella.johnson at state.or.us Thu Dec 27 08:36:58 2018 From: pamella.johnson at state.or.us (Pamella Johnson) Date: Thu, 27 Dec 2018 16:36:58 +0000 Subject: [OSSSA218] New 2019 Oregon W-4 Message-ID: Good morning Section 218 Employers: As you most likely are aware, beginning January 1, 2019 Oregon will have its own W-4. This form was created by the Oregon Department of Revenue (DoR) to enhance synchronization with the changes made in the federal tax code (passed by Congress in December 2017 and effective January 1, 2018). Attached you will find information related to this new W-4 including a DoR suggested paycheck stuffer which addresses the new form. The Oregon W-4 can be downloaded from the DoR website for distribution to employees. Thank you. Pamella Pamella Johnson Oregon State Social Security Administration Oregon Public Employees Retirement System Oregon Public Employees Retirement System *****CONFIDENTIALITY NOTICE***** All information in this email, including attachments, is approved solely for delivery to and authorized use by its intended recipients. Use, dissemination, distribution, or reproduction of this message and/or any of its attachments by unintended recipients is not authorized and may be unlawful. If you are not an intended recipient of this message or an authorized assistant to an intended recipient, please notify the sender by replying to this message and then delete it from your system. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- A non-text attachment was scrubbed... Name: W-4 Info for Employers.pdf Type: application/pdf Size: 40599 bytes Desc: W-4 Info for Employers.pdf URL: -------------- next part -------------- A non-text attachment was scrubbed... Name: check-withholding-stuffer.pdf Type: application/pdf Size: 24778 bytes Desc: check-withholding-stuffer.pdf URL: -------------- next part -------------- A non-text attachment was scrubbed... Name: withholding-tax-formulas_206-436_2019.pdf Type: application/pdf Size: 88276 bytes Desc: withholding-tax-formulas_206-436_2019.pdf URL: From pamella.johnson at state.or.us Thu Dec 27 14:34:09 2018 From: pamella.johnson at state.or.us (Pamella Johnson) Date: Thu, 27 Dec 2018 22:34:09 +0000 Subject: [OSSSA218] Revised 2019 Oregon Withholding Tax Formulas Message-ID: Good afternoon: Attached please find the Revised Withholding Tax Formulas document provided by the Oregon Department of Revenue. An error was found on page 7 of the document sent to you earlier today. This error has caused some difficulties for employers attempting to test their software and has been corrected. In addition to this attachment, the corrected document can be found on the DoR website. Please make sure you are using the most recently updated edition. Thank you. Pamella Pamella Johnson Oregon State Social Security Administration Oregon Public Employees Retirement System Oregon Public Employees Retirement System *****CONFIDENTIALITY NOTICE***** All information in this email, including attachments, is approved solely for delivery to and authorized use by its intended recipients. Use, dissemination, distribution, or reproduction of this message and/or any of its attachments by unintended recipients is not authorized and may be unlawful. If you are not an intended recipient of this message or an authorized assistant to an intended recipient, please notify the sender by replying to this message and then delete it from your system. -------------- next part -------------- An HTML attachment was scrubbed... URL: -------------- next part -------------- A non-text attachment was scrubbed... Name: withholding-tax-formulas_206-436_2019 (1) Revised.pdf Type: application/pdf Size: 88249 bytes Desc: withholding-tax-formulas_206-436_2019 (1) Revised.pdf URL: From pamella.johnson at state.or.us Fri Dec 28 14:36:08 2018 From: pamella.johnson at state.or.us (Pamella Johnson) Date: Fri, 28 Dec 2018 22:36:08 +0000 Subject: [OSSSA218] Q&A Generated by the December Employer Training Events Message-ID: Good afternoon Section 218 Employers: During the course of the training events conducted earlier this month questions were raised that required follow-up. Below are the responses from Chris Cox employer outreach specialist at the Oregon Department of Revenue (chris.cox at oregon.gov): 1. Does Box 14 of the DOR W-2 need a code/label for STT? What are the maximum number of characters it will take? All you need is to Report the Tax withheld, the code is ORSTTWH. 2. For 2018 does the DOR W-2 need to have STT information in box 14? For 2018 there is no I-WIRE penalty for not having this information. The rule to make it a requirement is being finished now and will begin effective 2019. We do urge all employers to have this information on the W-2s. If the employer does not include it for 2018 the employer will still need the data because the WR on Line 8 asks for Total Oregon statewide transit tax on W-2s and 1099s. 3. On ROL (Oregon Revenue on Line) how accurate is the Garnishment balance? We have identified a scenario when the debt is at a collection agency and a garnishment is issued the balance will not be correct. You should notice the balance on ROL being less. In this case you will need to call for the balance and mail in the payment. A correction is currently being worked on to resolve this issue. 4. For the employer and the new OR W-4: Paragraph three notes on the "information to employer" handout to default to filing single/0 in the event the employee fails to have a certificate. Does this mean that the employer can default to single/0 If NO Oregon W-4 is submitted by the employee? NO. You only default Oregon to single/0 if there is no certificate (completed W-4) at all. If the employee only completes the federal W-4 you will use the information on the federal W-4 for Oregon withholding. The Oregon W-4 is not required for 2019 but it is highly encourage. 5. Does the employer need to mail in the W-4 to Oregon Department of Revenue? Only when required. This information can be found on the 2019 W-4 Oregon Withholding Instructions under the "Employer Instructions" Section. Pamella Pamella Johnson Oregon State Social Security Administration Oregon Public Employees Retirement System Sl2 Oregon Public Employees Retirement System *****CONFIDENTIALITY NOTICE***** All information in this email, including attachments, is approved solely for delivery to and authorized use by its intended recipients. Use, dissemination, distribution, or reproduction of this message and/or any of its attachments by unintended recipients is not authorized and may be unlawful. If you are not an intended recipient of this message or an authorized assistant to an intended recipient, please notify the sender by replying to this message and then delete it from your system. -------------- next part -------------- An HTML attachment was scrubbed... URL: