The bill amends the Income Tax Act of 1967 by updating Section 471 and adding a new Section 707a. Key changes include the requirement for the Department of Treasury to administer the tax and prescribe forms for taxpayers, with specific rules regarding record maintenance, tax computation, and the filing process. Notably, the language has been modified to require that state income tax returns must include a space for taxpayers to indicate their willingness to participate in the anatomical gift donor registry, along with a statement about the necessary steps to complete the registration. Additionally, starting with the 2025 tax year, the instruction booklet accompanying tax returns will include information on classifying individuals as employees or independent contractors, along with contact information for reporting payroll fraud.

Furthermore, the new Section 707a mandates that the Department of Treasury send notices to payees listed on Form 1099-MISC, explaining the classification rules for employees and independent contractors, and providing contact information for reporting potential misclassification. This aims to enhance transparency and ensure that individuals are informed about their rights and responsibilities regarding employment classification and anatomical gift donations.

Statutes affected:
House Introduced Bill: 206.471