Backup Withholding

Thank you for your answer to my previous question: Hawaii still mirrors the Federal (IRS) requirements for Form 1099 (1099-DIV, INT, G, MISC, OID , PATR, and R) withholding. I have these follow-up questions: How does the Accelerated Deposit Rule apply to HI withholding deposits? I'm not clear if the deposits are required on the days we have the Fed deposits because our Fed withholding exceeds $100,000 or only when the HI withholding exceeds $100,000. Do other states have any specific instructions to clarify this requirement?

It appears that Hawaii foll . . .

We withhold employment taxes on disability income paid to our customers and deposit the funds to the Fed account daily because the liability exceeds $100,000. We are semi-weekly depositor, required to use the EFTPS (we use an ACH tax deposit product offered by our bank). The issue is the ACH tax deposits are settled the next business day after we request the payment (our systems provide the liability data after the nightly batch process, therefore we only know the liability amount in the morning to request the payment). For the quarterly form 941, we are required to include schedule B which reports the liability based on dates payments were made, therefore, our deposits always appear late according to the IRS tracking system. We often receive late payment notices but the IRS often abates the penalties after working with us. Questions: 1) With our current situation as described above, what can we do to comply with the IRS deposit requirements and avoid the late notices? 2) If we used the EFTPS offered by the IRS, would they accept the day we enter the deposits into the system as our deposit date (though the actual cash is transferred the next business day)? Thank you.

Given the IRS explicit . . .

Has the state of Hawaii issued new guidelines for withholding tax deposit requirements in 2010?

Hawaii still mirrors the Fe . . .

Our organization would like to pay the taxes on a raffle prize valued under the $5,000 withholding requirements. What would be the appropriate accounting for this? Can we withhold even though the prize value is under $5,000 or should be estimate the taxes and pay it out with the prize?

Whether this is reportable . . .

I previously submitted a question asking if a payor does not provide a TIN, but the vendor's name includes the word "Inc", can we use the eyeball test to exclude the payment from backup withholding. The response provided indicated that an entity can be exempt from information reporting based upon the eyeball test and recommended documenting our records to support why we did not file. I realize that the payee can be exempt from information reporting, based upon the eyeball test, but can you use the same argument to avoid backup withholding without a TIN? Information reporting falls under IRC Sec. 6049, but backup withholding falls under IRC Sec. 3406.

When we talk about exempt o . . .