Tax resources

Congress has made a revision to the Consolidated Appropriations Act, which was signed by President Obama in 2016, in an effort to reduce ongoing fraud. For the 2016 tax year employers must file their government copies of Forms W-2 to the Social Security Administration and 1099-MISC to the Internal Revenue Service by January 312017 rather than February 28 as it was in the past. If January 31 falls on a Saturday, Sunday, or legal holiday, the deadline will be the next business day. This will apply to both electronic and paper returns.

For 1099’s the new January 31 deadline only applies to Form 1099-MISC reporting amounts in Box 7: Non-employee Compensation. If you don’t have amounts in Box 7 you must file by February 28, 2017, for paper returns and by March 31, 2017, if you file electronically.

There will be penalties for reporting late, which can be found on www.IRS.gov. If you have any questions regarding this change, please contact your representative at Hertzbach. 

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Tax Resources Blog

Beat the summer heat and shop Maryland Tax-Free Week

Posted By: Tax Department , August 11, 2017

Just in time for back to school shopping, Maryland apparel retailers are beginning a week of tax-free sales. The second Sunday of August to the following Saturday is designated as Shop Maryland Tax-Free Week each year. That means qualifying apparel and footwear $100 or less, per item, are exempt from the state sales tax. Accessory items are generally…

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New changes to Maryland Section 529 investment plans

Posted By: Tax Department , January 4, 2017

If saving for college is on your list of New Year’s resolutions, new laws in Maryland will make 2017 a great year to start. Two new changes to Maryland Section 529 investment plans will make them even more attractive vehicles to save for college expenses. A Section 529 plan is created by making contributions to…

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