DFAS to work on processing third-party payments for 2018, 2019

Photo By Mary Davis | Yanir Hill, chief of the Benefits, Compensation and Deployments Office of the Assistant G-1 for Civilian Personnel, U.S. Army, addresses attendees of the civilian relocation town hall at Sembach Kaserne, Germany, March 12. The town hall provided an opportunity for Defense Finance and Accounting Service experts to explain tax laws affecting the relocation of government civilian employees.  

WASHINGTON, DISTRICT OF COLUMBIA, UNITED STATES

12.11.2019

Courtesy Story

Fort McCoy Public Affairs Office           

In September 2019, Defense Finance and Accounting Service started processing third-party payments for civilians from 2018 and 2019.

Third-party payments are payments made to vendors for taxable moving expenses and are counted as income to the traveler. These include household goods (HHG) shipments, temporary storage of HHG, shipment of mobile homes, and continental U.S. nontemporary storage.

The third-party payment year runs Nov. 1 through Oct. 31. Payments made to a vendor in November and December will be reported to the IRS as income during the following year.

For 2018 moves, W-2Cs will be mailed by the end of 2019 for payments made to vendors from January to October 2018. A debt letter for tax withholding will be sent in January 2020.

Federal income taxes that the traveler owes will be settled with the IRS on an amended return.

The IRS plans to publish guidance for Department of Defense employees who receive a 2018 W-2C.

The guidance should include procedures for seeking relief from tax penalties.

Direct communication will be sent to the 2018 traveler with this information once the W-2C is completed.

For 2019 moves, W-2s will be issued in January 2020. (November and December 2018 third-party payments included in this batch.) A debt letter for tax withholding will be sent in February 2020.

For more information about this process, visit www.dfas.mil/taxlawchange; email [e-mail]; or call 888-332-7366, selection option one, and again select option one. For general information about the civilian relocation process, visit www.dfas.mil/askdfas.html.

(Article prepared by the Fort McCoy Public Affairs Office and Defense Finance and Accounting Service.)

• Date Taken: 12.11.2019
• Date Posted: 12.11.2019 14:12
• Story ID: 355264
• Location: WASHINGTON, DISTRICT OF COLUMBIA, US