Posts Tagged ‘IRS’

Some Railroad Retirement recipients must add dependent info with IRS to get $500 COVID payments

Railroad Retirement benefit recipients who have a qualifying child and didn’t file a 2018 or 2019 tax return have a limited window to register to have $500 per eligible child added automatically to their soon-to-be-received $1,200 COVID-19 payment, the Internal Revenue Service said Monday.

A quick trip to a special non-filer tool on IRS.gov by noon Eastern time, Wednesday, April 22, may help put all of their eligible Economic Income Payment into a single payment, the agency said in a news release.

“We want to ‘Plus $500’ these recipients with children so they can get their maximum Economic Impact Payment of $1,200 plus $500 for each eligible child as quickly as possible,” said IRS Commissioner Chuck Rettig. “They’ll get $1,200 automatically, but they need to act quickly and register at IRS.gov to get the extra $500 per child added to their payment. These groups don’t normally have a return filing obligation and may not realize they qualify for a larger payment. We’re asking people and organizations throughout the country to share this information widely and help the IRS with the Plus $500 Push.”

If the Wednesday deadline is missed, RRB beneficiaries who don’t normally file a tax return and do not register with the IRS by April 22, will still be eligible to receive the separate payment of $500 per qualifying child. Their payment at this time will be $1,200 and, by law, the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020. They will not be eligible to use the Non-Filer tool to add eligible children once their $1,200 payment has been issued, the IRS said.

To read the full IRS release, please follow this link.

Deadline approaching for Union Pacific workers to apply for refunds

Certain Union Pacific (UP) workers who were employed by the carrier from 1991 to 2017 might get some money back in their pockets thanks to a ruling made in the United States Court of Appeals for the Eighth Circuit.

If they meet certain criteria and were taxed on particular stock options or ratification bonuses, current and former UP workers will receive a refund after the appeals court sided with UP in the summer of 2017 and reversed a district court’s ruling in a fight over taxes with the Internal Revenue Service (IRS).

At the heart of the matter was whether stock options or ratification bonuses received by UP workers should have been treated as taxable income under the Railroad Retirement Tax Act. The IRS argued successfully in district court that this was the case and received a summary judgment of about $75 million in taxes owed by the carrier. However, UP appealed the decision, and the appeals court reversed the district court’s ruling.

In June 2018, the U.S. Supreme Court denied a petition by the IRS to hear the case, settling the matter in favor of UP and paving the way for the potential payouts.

In order to determine their eligibility for a refund, people who were employed by UP from 1991 to 2017 must file a consent form by visiting www.unionpacifictaxrefund.com. The consent form must be turned in by a March 12, 2019, deadline in order to receive a refund, which is scheduled to be disbursed between June and August 2019.

For additional information, see the FAQ about the refund program by following this link.

For additional questions, contact Union Pacific’s tax refund administrator by emailing info@UnionPacificTaxRefund.com or call 888-724-0236 (toll-free).

Retirees who claim refunds on stock options have been advised their annuities could be reduced.

Follow this link to read the appeals court ruling (PDF).

Receiving disability payments?

Members who received disability-claim payments from Anthem or Lincoln in 2010 will be receiving IRS W-2 forms from those insurers.

This does not mean that the benefits are taxable. It is merely a reporting requirement of the IRS.

The payments will be listed in Box 12 with a “J” and the amount received. This notifies the IRS that the disability income is non-taxable.

UTU treasurers’ alert: IRS payment changes

All UTU locals are now required to make federal tax payments on-line using the Electronic Federal Tax Payment System (EFTPS).

This is because the Internal Revenue Service announced that effective Jan. 1, 2011, it no longer will accept Form 8109 FTD (federal tax deposit) coupons for filing federal tax payments.

The EFTPS is a free service from the Treasury Department. It is available by phone or online 24/7.

UTU treasurers should start using EFTPS beginning with December 2010 payroll tax liability payments due in January 2011. An exemption will be for employers who have $2,500 or less in quarterly payroll tax liability for 941 returns and pay this liability when filing the return.

Note that federal tax payments due Jan. 15, 2011, for the December payroll tax liability will not be accepted if you try to pay with a paper coupon. Any December 2010 federal payroll tax payment due on any date of January 2011 must be submitted electronically, either by phone or online. Therefore, you must be set up for electronic filing before Dec. 31.

If you are already making deposits using EFTPS, you need to do nothing.

Failure to remit your payroll tax payment electronically after Jan. 1, 2011 may result in a 10 percent penalty charge on the deposit amount for each non-electronic payment.

A letter with more information is being mailed to treasurers.

UTU locals must file IRS Form 990

UTU locals that have not filed Form 990, Form 990EZ or Form 990-N with the Internal Revenue Service for the last three years have until Oct. 15, 2010, to file, or they will automatically lose their tax-exempt status.

For additional information on which of three above forms a local is required to file, read the attached release form the IRS.

All UTU locals must file Form 990

Local treasurers and other officers should be aware that all UTU locals are now required to file Internal Revenue Service Form 990 for fiscal year 2007.

The form must be filed no later than May 15, 2008.

Previously, locals that ordinarily received less than $25,000 in adjusted receipts did not have to file the form unless they received the form from the IRS.

There are three different versions of Form 990. Locals that have adjusted receipts greater than $100,000 are required to complete and file IRS Form 990.

Locals that have adjusted receipts ranging from $25,000 to $100,000 must complete and file Form 990-EZ.

Locals with adjusted receipts of less than $25,000 should file Form 990-N. The form must be filed electronically. There will be no paper form. To file Form 990-N, click here.

Form 990-N seeks the following information:

  • The legal name of the organization;
  • Any name under which the organization operates or does business;
  • The organization’s mailing address and its Internet Web site address (if any);
  • The organization’s taxpayer identification number;
  • The name and address of a principal officer; and,
  • Evidence of the continuing basis for the organization’s exemption from the filing requirements under section 6033(a)(1).

Form 990-N has just been made available by the IRS. Like Form 990, the 990-N will be due no later than the 15th day of the fifth month after the end of an organization’s tax year.

Although there is no monetary penalty for failing to file the e-postcard, organizations that do not file for three years in a row will have their tax-exempt status revoked. To be reinstated, an organization will have to file a new exemption application and pay the applicable user fee.

Congress imposed this new requirement because of concerns that small organizations, that have had no annual filing requirement in the past, have not kept the IRS up-to-date on address and other changes.