IRS e-News for Small Business 2018-9: IRS “Paycheck Checkup” campaign; tax guidance regarding virtual currency

Issue Number:  2018-9

Inside This Issue

  1. March 26: IRS launches week-long “Paycheck Checkup” campaign
  2. Reminder: Join IRS on Thunderclap to Promote National “Paycheck Checkup”
  3. Tax season tip: Income from virtual currency transactions is reportable

1.  March 26: IRS launches week-long “Paycheck Checkup” campaign

As part of the “paycheck checkup” campaign, the IRS continues to advise taxpayers this week to check their withholding to confirm they have the correct amount of tax taken out of their paychecks.

Employers should encourage their employees to use the updated IRS Withholding Calculator to determine if they should submit a new Form W-4.

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2.  Reminder: Join IRS on Thunderclap to promote national “Paycheck Checkup”

Join the IRS in support of a Thunderclap campaign promoting a national “Paycheck Checkup.” 

Following major tax law changes, the IRS urges all taxpayers to check their tax withholding to ensure they have the right amount of tax taken out of their paychecks. Too little tax withheld could mean a tax bill or a penalty in 2019. Additionally, with the average refund topping $2,800, some may prefer to get more money in their pay now. 

Thunderclap is a social media platform that will automatically post a message to participants’ Facebook, Twitter or Tumblr accounts to support an initiative. To sign up for the Paycheck Checkup Thunderclap:

1. Follow this link: http://thndr.me/7BvGKI.  

2. Select “Support with: Facebook | Twitter | Tumblr.” (Choose one, then repeat the process to select more platforms or a second account.)

3. Authorize Thunderclap to post a single message by clicking on the “Add My Support” tab, and following the prompts to input username and password. 

On Thursday, March 29, at 2 p.m. EST, Thunderclap will automatically post, “IRS urges you to perform a Paycheck Checkup today to make sure your tax withholding is right for you. http://thndr.me/TRRWef” to all participating social media accounts. The link goes to the recently updated IRS Withholding Calculator.

This Thunderclap is part of the IRS’s “Paycheck Checkup” campaign to encourage people to review their tax withholding.

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3.  Tax season tip: Income from virtual currency transactions is reportable

Virtual currency transactions are taxable by law just like transactions in any other property. IRS Notice 2014-21 addresses transactions in virtual currency, also known as digital currency.

The IRS has issued a reminder for taxpayers. In addition, the IRS reminds the small business and self-employed community about the following:

Wages paid to employees using virtual currency must be reported by an employer on a Form W-2 and are subject to federal income tax withholding and payroll taxes.

Payments using virtual currency to independent contractors and other service providers are taxable, and self-employment tax rules generally apply.

For more information, see the IRS.gov Virtual Currencies page.

Helping businesses be more successful.

Questions or Request? Please email us at: Info@WindhamChamber.com

Windham Region Chamber of Commerce
1010 Main St., P.O. Box 43
Willimantic CT 06226
Phone: (860) 423-6389
Fax: (860) 423-8235

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