IRS Releases 2020 General Instructions for Forms W-2, W-3
The IRS released the 2020 General Instructions for Forms W-2 and W-3. The 2020 Form W-2, Wage and Tax Statement, and the Form W-3, Transmittal of Wage and Tax Statements, were released previously.
Here are the new items:
- Truncation of social security numbers (SSN) on employee copies of Form W-2. Employers may now truncate the employee’s SSN on employee copies of Forms W-2. Employers may not truncate the employee’s SSN on Copy A. To truncate where allowed, replace the first five digits of the nine-digit number with asterisks (*) or X’s. For example, an SSN of 987-56-1234 would appear on the employee copies as ***-**-1234 or XXX-XX-1234.
- Potential lowering of the e-filing threshold for information returns. While the Taxpayer First Act has authorized the lowering of the e-filing threshold to 100 returns for 2020 and then to 10 returns thereafter, the IRS has not issued regulations to implement the lowered threshold.
- Clarification on Code P reporting in Box 12. The only amounts to be reported in Box 12 under Code P are moving expense reimbursements paid directly to a member of the U.S. Armed Forces who moves per a military order and incident to a permanent change of station. Employers should not report any other amounts under Code P.
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Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Payroll Information Resources for the APA.