Blog

The second quarter issue of the Information Reporter E-Zine is now available. Current TIR Answer Center subscribers enjoy free access to the quarterly published E-Zine; with this new issue focused on FATCA.

Our subscribers have been enjoying a look at the extensive differences between last month's new Form W-8BEN-E (for entities) and previous versions. Today, we will briefly examine the two key differences between the May 2013 version of the Form W-8BEN (for individuals) and its 2012 variant.

On May 9 the Internal Revenue Service (IRS) announced a plan to share tax information with its peers in Australia and the U.K. Enforcement focus is on trusts and companies holding assets on behalf of residents in jurisdictions throughout the world; and thus potentially engaged in tax evasion.

Yet another new compliance task is now confronting AP and tax departments around the country. That being handling new IRS notices sent out to information reporters when filed Forms 1099-K may lead the IRS to believe that your organization has underreported, or when the IRS may have "other questions" about the returns your organization has filed in recent weeks.

The IRS Form CP2100 and CP2100a , commonly known as the "B-Notice", is used to notify information reporters as to incorrect or incomplete payee names and/or taxpayer identification numbers on forms filed with the IRS. The number of such forms issued has risen 40% in the past six years. As such your AP department had better be ready for another trying B-Notice season.

Last week a Kentucky state court ruled against three insurers and for a new state unclaimed property law. This law expands existing due diligence requirements by directing life insurance companies to check their insured lists against the Social Security Administration’s Death Master File and to take ‘good faith’ steps to notify beneficiaries.”

Today, President Obama released his Fiscal Year 2014 Budget. In spite of the sequester the IRS will actually see an increase in its budget over 2012 levels with one goal in mind - increased enforcement and collection measures.

The NY Times is reporting on another overbilling lawsuit. This time involving a corporate client overcharged by law firm DLA Piper. The suit offers a peek into the world of inflated billable hours - one our clients do not have to worry about!

Yesterday Bloomberg reported that between 2009 and 2012 JP Morgan Chase paid $8.5 billion in settlements with regulators over non-compliant behavior. Still think your organization can overlook all of its compliance requirements?

On February 27, 2013 the U.S. Court of Federal Claims (Federal Claims No. 11-724T 227-13) found that discounted stock options can be considered noncompliant nonqualified deferred compensation (NQDC) arrangements under Internal Revenue Code (IRC) Section 409A.