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Pub. 80, Circular SS 2004 Tax Year

Introductory Material

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

What's New

Additional federal holiday. January 20, 2005, is Inauguration Day and has been designated as a federal holiday for tax purposes. Tax returns due on that day may be filed on the next business day. Also, January 20, 2005, is not a banking day under federal tax deposit rules.

Redesigned Form 941-SS. Form 941-SS, Employer's Quarterly Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands) was completely redesigned for tax periods beginning after 2004. Many of the reporting lines on the redesigned Form 941-SS have changed from those shown on the January 2004 revision. Form 941-SS line references in this publication relate to the January 2005 revision of Form 941-SS. Use only the redesigned version of Form 941-SS (revision date of January 2005 or later) to report employment taxes for tax periods beginning after December 2004. Use the January 2004 revision of this publication for Form 941-SS line references relating to tax periods ending before 2005, including the fourth quarter 2004 Form 941-SS that is due January 31, 2005.

Social security and Medicare taxes for 2005. The social security wage base for 2005 is $90,000. There is no wage base limit for Medicare tax. The tax rate remains 6.2% for social security tax and 1.45% for Medicare tax.

Increase to FUTA tax deposit threshold. The Treasury Department recently amended Regulations section 31.6302(c)-3 to increase the accumulated FUTA tax deposit threshold from $100 to $500. The $500 threshold applies to FUTA tax deposits required for taxes reported on Forms 940, 940-EZ, and 940-PR, Employer's Annual Federal Unemployment (FUTA) Tax Return for tax periods beginning after December 31, 2004. For more information about this and other important tax changes, see Publication 553, Highlights of 2004 Tax Changes.

New form for reporting discrepancies between Forms 941-SS and Forms W-2. We recently developed Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations. You may use Schedule D (Form 941) to explain certain wage, tax, and payment discrepancies between Forms 941-SS and Forms W-2 that were caused by acquisitions, statutory mergers, or consolidations.

Reminders

Electronic filing and payment. Now, more than ever before, businesses can enjoy the benefits of filing and paying their taxes electronically. Whether you rely on a tax professional or handle your own taxes, IRS offers you convenient programs to make it easier. Spend less time and worry on taxes and more time running your business. Use e-file and Electronic Federal Tax Payment System (EFTPS) to your benefit.

  • For e-file visit www.irs.gov for additional information.

  • For EFTPS, visit www.eftps.gov or call EFTPS Customer Service at 1-800-555-4477.

Use the electronic options available from IRS and make filing and paying taxes easier.

Change of address. If you changed your business mailing address or business location, notify the IRS by filing Form 8822, Change of Address.

Web-based application for an EIN. You can apply for an employer identification number (EIN) online by visiting the IRS website at www.irs.gov/businesses/index.html.

Private delivery services. You can use certain private delivery services designated by the IRS to send tax returns or payments. The list includes only the following:

  • DHL Express (DHL): DHL Same Day Service; DHL Next Day 10:30 am; DHL Next Day 12:00 pm; DHL Next Day 3:00 pm; and DHL 2nd Day Service.

  • Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International Priority, and FedEx International First.

  • United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

Your private delivery service can tell you how to get written proof of the mailing date.

Caution
Private delivery services cannot deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an IRS P.O. box address.

When hiring new employees. Record the number and name from each new employee's social security card. An employee who does not have a social security card should apply for one on Form SS-5, Application for a Social Security Card. See section 3.

Unresolved tax issues. If you have attempted to deal with an IRS problem unsuccessfully, you should contact the Taxpayer Advocate. The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Your assigned personal advocate will listen to your point of view and will work with you to address your concerns. You can expect the advocate to provide:

  • A “fresh look” at a new or ongoing problem,

  • Timely acknowledgment,

  • The name and phone number of the individual assigned to your case,

  • Updates on progress,

  • Timeframes for action,

  • Speedy resolution, and

  • Courteous service.

When contacting the Taxpayer Advocate, you should provide the following information.

  • Your name, address, and employer identification number (EIN).

  • The name and telephone number of an authorized contact person and the hours when he or she can be reached.

  • The type of tax return and year(s) involved.

  • A detailed description of the problem.

  • Previous attempts to solve the problem and the office that had been contacted.

  • A description of the hardship that you are facing (if applicable).

You may contact a Taxpayer Advocate by calling a toll-free number, 1-877-777-4778. Persons who have access to TTY/TDD equipment may call 1-800-829-4059 and ask for Taxpayer Advocate assistance. You may also visit the Taxpayer Advocate website at www.irs.gov/advocate. If you prefer, you may call, write, or fax the Taxpayer Advocate office in your area. See Publication 1546, The Taxpayer Advocate Service of the IRS, for a list of addresses and fax numbers.

Recordkeeping. Keep all records of employment taxes for four years. These should be available for IRS review. There is no required format for such records, but they should include your EIN; the amounts and dates of all wage payments (including fringe benefits) and tips reported; the names, addresses, and occupations of employees receiving such payments and their social security numbers; copies of returns filed; dates of employment; and the dates and amounts of deposits made in accordance with section 8. Farm employers must keep a record of the name, permanent address, and EIN of each crew leader. See Farm Crew Leaders on page 5.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Calendar

The following are important dates and responsibilities. Also see Publication 509, Tax Calendars for 2005.

Note. If any date shown below falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. For any due date, you will meet the “file” or “furnish” requirement if the form is properly addressed and mailed First-Class or sent by an IRS-designated delivery service on or before the due date. See Private delivery services above.

By January 31. 

  • Furnish wage and tax statements to employees. Give each employee a completed Form W-2VI, W-2GU , W-2AS , or W-2CM. See section 10.

  • File Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, with the Internal Revenue Service. If you deposited all Form 943 taxes when due, you have 10 additional days to file.

  • U.S. Virgin Islands employers only must file Form 940 or Form 940-EZ, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the U.S. Internal Revenue Service. Pay or deposit (if more than $500) any balance of the tax due. If you deposited the full amount of taxes when due, you have 10 additional days to file.

By February 28.  File wage and tax statements with the Social Security Administration (SSA). File Copy A of Forms W-2VI, W-2GU , W-2AS, or W-2CM and Form W-3SS, Transmittal of Wage and Tax Statements, with the SSA. For electronically filed returns, see By March 31 below.

By March 31.  File electronic (not magnetic media or paper) Forms W-2VI, W-2GU, W-2AS, or W-2CM with the SSA. See Social Security's Employer Reporting Instructions and Information website at www.socialsecurity.gov/employer for more information.

By April 30, July 31, October 31, and January 31.  File Form 941-SS, Employer's Quarterly Federal Tax Return (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands), with the Internal Revenue Service. If you deposited the full amount of taxes when due, you have 10 additional days to file. Deposit FUTA tax for the quarter (including any amount carried over from other quarters) if over $500. If $500 or less, carry it over to the next quarter. See section 11.

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