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According to the Manhattan U.S. Attorney's Office Ernst & Young admitted earlier this week to participating in a five-year tax fraud scheme on behalf of 200 clients and $2 billion in assets.

The IRS Voluntary Classification Settlement Program (VCSP) is a program allowing organizations who have been treating certain workers as independent contractors to voluntarily reclassify their workers as employees for future tax periods for employment tax purposes. However there are several issues your organization should think about prior to applying for the program.

On January 28, 2013 the Internal Revenue Service (IRS) announced that eight new members have been selected for the Information Reporting Program Advisory Committee (IRPAC). Among those new members includes a CPA from one of our long time clients: State Street Bank and Trust Company.

The Foreign Account Tax Compliance Act (FATCA) Final Regulations, TD 9610, have been posted by the IRS as of January 17, 2013. The final regulations will formally be published on January 28, 2013 but we have attached them here for you to download. 

According to a recent survey of financial institutions fully 65% are struggling to put in place policies and procedures as well as actually complete the client identification process required by the Foreign Account Tax Compliance Act (FATCA). Needless to say this does not bode well for non-financial AP departments preparing for due diligence changes of their own as imposed by FATCA.

Merely log on and go to the Information Reporter Ezine link; and there our current subscribers will find Volume 5 Issue 1 - featuring an in depth look at U.S. State Reporting.

If you are a business taxpayer who has not filed a return, or filed a false or fradulent return, then beware. The IRS can prepare returns and assess taxes under the authority of IRC Section 6020(b); and they are taking advantage of this rule more than ever before. For instance, in Fiscal Year 2011, $1.64 billion in 6020(b) assessments were levied.

IRS Notice 2012-2 has just been issued providing new guidance to payment settlement entities (typically banks issuing payment cards) that are U.S. payors regarding the circumstances under which an information return is required under IRC §6050 with respect to a payment made to a Non-US account.

According to IR-2012-78 the foreign earned income exclusion will rise to $97,600 for 2013. This is up from $95,100 in 2012 and is part of the IRS' annual inflation adjustment to over two dozen tax provisions.

Subscribers! This quarter's Volume 4 Issue 3 of the Information Reporter E-Zine is now ready. In this quarter we break down and examine everything your AP department needs to know about reporting Non-Qualified Deferred Compensation (NQDC).