a-98-84.pdf

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# Items of General Interest

## Announcement 98-84

### Changes to Forms W-2 and W-3 Delayed Until Tax Year 2000

#### Background

In Announcement 98-55, 1998-26 I.R.B. 41, the IRS asked for
comments on proposed changes to Form W-2, Wage and Tax
Statement, and Form W-3, Transmittal of Wage and Tax
Statements. These changes had been proposed for the 1999 forms
to be filed in 2000.

#### Changes Will Be Delayed

Based on comments and suggestions received in response to
Announcement 98-55, the IRS will postpone making major revisions
to Forms W-2 and W-3 until tax year 2000; that is, the year 2000
forms filed in 2001. However, see the changes to the 1999 forms
noted below.

The Service is delaying implementation to adequately consider all
comments received and to give the payroll industry sufficient time to
prepare for the changes. Many employers voiced concerns that
changes to Forms W-2 and W-3 would hinder efforts to update
systems for the year 2000 date change.

#### 1999 Forms W-2 and W-3

The 1999 Forms W-2 and W-3 will remain the same size and retain
the same format as the 1998 forms. However, the following
changes will be made:

· The use of Form W-2, box 12, "Benefits included in box 1,"
will be optional. However, employers must continue to report
the lease value of a vehicle provided to an employee either in
box 12 or in a separate statement to the employee.

· Form W-3 will be a single copy with separate instructions
provided in the "Instructions for Forms W-2 and W-3." The
second page, "YOUR COPY," is eliminated.

2000 Forms
W-2 and W-3

The IRS plans to announce and request comments on proposed
changes to the year 2000 Forms W-2 and W-3 early in 1999.