Washington State DOR Launching New Portal for Taxes and Business Licenses
February 27, 2018
On March 19, 2018, the Department of Revenue will launch My DOR as the secure portal for both Washington state tax and business licensing services. They are retiring the existing online service portal, My Account/e-File, and taxpayers will begin filing electronically and accessing their tax accounts in My DOR. This launch will affect all businesses and tax professionals who file taxes electronically or access any Department of Revenue secure services.
As part of the Department’s outreach efforts, they are contacting professional associations and organizations in Washington state to share information. If your credit union is impacted by (or interested in) this launch, they have prepared the following resources for you to:
- Attend a webinar. To help prepare businesses, the Department of Revenue will host a series of free live webinars starting March 7. Continuing education credit is also available. A complete schedule is available on wa.gov.
- Learn more. For additional information and frequently asked questions, visit wa.gov/mydor.
If you have any questions, please contact the Department of Revenue at MyDORfeedback@dor.wa.gov.
Question of the Week
If a credit union gives a prize to a member, what are the tax implications?
When a credit union gives a prize to a member, it may have to file one of three tax forms. Before deciding which form to use, the credit union must determine why the prize was given and the value of the prize. First, a prize may be given to an employee as part of the employer-employee relationship. If this is the case, the prize is considered taxable wages and must be reported on the employee’s form W-2.
Second, if the prize was awarded in connection with the member opening a deposit account or maintaining an account relationship and is valued at $10 or more, the credit union must file a Form 1099-INT. The value of the item is determined by using the “fair market value” standard and is generally equal to what the credit union paid to purchase the item.
Third, a 1099-MISC must be filed when neither of the above options apply personally to the member, and the value given to the member throughout the year is at least $600. Here, the prize is considered miscellaneous income and not interest income because it is not associated with the opening or maintenance of an account.
When determining whether to file a 1099-MISC or a 1099-INT for a prize, consider whether the prize was given in connection with the member opening a deposit account or maintaining an account relationship. If the prize was given based on one of those reasons, it is considered interest and a 1099-INT must be filed if the prize is valued at $10 or more. If the item was given as a prize or award and the winning person did not agree to participate based on the opening or maintenance of an account, a 1099-MISC is required. The $600 requirement for the 1099-MISC includes the combined value of all miscellaneous income the member received throughout the calendar year.
National Credit Union Administration (NCUA)
The NCUA released a new savings infographic to be used during America and Military Saves Week.
Consumer Financial Protection Bureau (CFPB)
The CFPB issued a Request for Information regarding the Bureau’s external engagements.
The CFPB released its Quarterly Consumer Credit Trends report. This report details how the removal of public records has little effect on consumer’s credit scores.
The FFIEC has released the 2018 Guide to HMDA Reporting: Getting it Right.
Federal Reserve Board (FRB)
The FRB has released the minutes of the January Federal Open Market Committee Meeting.
Office of Foreign Assets Control (OFAC)
OFAC has updated the SDN list as of February 23, 2018. The last update prior to this was February 20, 2018.
Questions? Contact the Compliance Hotline: 1.800.546.4465, email@example.com.
Posted in Compliance News.