Hawaii state withholding
Has the state of Hawaii issued new guidelines for withholding tax deposit requirements in 2010?
State rules are of course always very much in flux.
Nevertheless, here is what you need to know:
Hawaii still...
Our organization would like to pay the taxes on a . . .
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?
The key to your answer revolves around the following:
I previously submitted a question asking if a payor does . . .
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 organizations or entity types, we are actually referring to...
We are making payment to a medical provider. We took . . .
We are making payment to a medical provider. We took the EIN from the invoice. By running our 1099s through the Tin matching program, we discovered that the name/TIN do not match. We have not received this information on a B Notice. As the TIN/EIN does not have to be provided under penalties of perjury, I am assuming that they have provided us with a TIN(on the invoice). They have not responded to our requests for a correct combination. Are we required to backup withhold, as we know the combination is incorrect, but have not received an official notification from the IRS?
Did you...
Can a taxpayer elect a different amount of withholding from . . .
Can a taxpayer elect a different amount of withholding from their IRA than 10% - or is it 10% or elect out completely?
What happens if we do not backup withhold on an . . .
What happens if we do not backup withhold on an account?
If your organization...
When we receive a C-Notice indicating we should begin backup . . .
When we receive a C-Notice indicating we should begin backup withholding, should we do so only on the account listed in the notice or for all accounts with that customer name attached?
This is what you should do...
We have received a C-Notice from the IRS. What does . . .
We have received a C-Notice from the IRS. What does this mean and what should we do?
The IRS sends a C-Notice to notify you that...
Our payee returned a Form W-9 in response to the . . .
Our payee returned a Form W-9 in response to the "second" B-Notice letter we sent. Can we accept this as updated information and avoid backup withholding on the account?
The only acceptable response to a "second" B-Notice is...
How does the money backup withheld get sent to the . . .
How does the money backup withheld get sent to the IRS? When is it sent?
This is what you need to know.
First off, and in general (from here we will answer you question) please note that non-payroll withholding, which includes backup withholding, retirement withholding, and withholding on gambling winnings, is...