Insert Date Insert Business Unit Payroll & Employment Tax Industry Issues Ensure Safety of Tax Funds Increase Electronic Filing Tax Refund Fraud Expand Electronic Services Facilitate Affordable Care Act Compliance verify tax payments.

Insert Date Insert Business Unit Safety of Tax Funds Rev. Proc now requires quarterly disclosure Are all practitioners aware? NPRC led industry trade associations to develop a voluntary disclosure program to remind taxpayers of their responsibility, and to suggest EFTPS to verify tax payments.

Insert Date Insert Business Unit Two-thirds of all Reporting Agents registered in the past six years Of ~13,000 Active Reporting Agents: 60% have fewer than 10 clients 83% have under 40 clients Only 1,000 have more than 100 clients Only 100 have more than 1,000 clients

Insert Date Insert Business Unit Improve ability to enforce existing requirements Correspond with RAs to reinforce requirements Electronic filing Client lists Quarterly notices to clients Establish rapid response teams to investigate warnings Establish a protocol for employers that determine that tax funds have been diverted Recommendations

Insert Date Insert Business Unit Payroll industry is the primary participant Develop/promote 94X e-filing benefits for employers How might a Free-file Alliance work for Employment Tax? E-signature impediment States’ experience e-file Expansion

Insert Date Insert Business Unit Tax Refund Fraud Alternatives  Accelerate W-2 reporting  Expand voluntary early/direct filing approach  Increase W-2 electronic filing  Modify scheduling/staging to use available data earlier  Access NDNH for QWR and New Hire data Not recommended  Shift filing to IRS directly (from SSA)

Insert Date Insert Business Unit Previously performed via Electronic Account Resolution o Move payments from one tax module to another o Penalty abatement request o Account hold requests Possible Self-service applications o EIN-name verification o Enhance transcript requests o E.g., add wage and tax detail from current TDS transcripts Transcript Delivery Service o Penalty research o Deposit due dates and dates of completed payments/deposits Expand Electronic Services

Insert Date Insert Business Unit Self-service applications could be developed Taxpayer Advocate Service escalation requests Where’s My Amended Return? (status) e-File and e-Pay Enhancements e-filing of amended employment tax returns (e.g., 941-X) e-payments on SSN level (e.g., tax levy amounts withheld from wages) Expand Electronic Services

Insert Date Insert Business Unit  Full-time employee determination  Affordability safe harbor measures  Reporting under Sections 6056 and 6055 –Statements to Taxpayers  Current Form-by-Form authorization for Electronic Statements is difficult at best Facilitate Affordable Care Act Compliance