Articles and Tax Tips

TAX TIP OF THE WEEK: What AP Must Show to Prove the Non-1099 Reportability of a Payee Claiming to be a 501(c)(3) Organization

Validating payees claiming to be 501(c)(3) non-1099 reportable organizations is always tricky. Tools like the IRS Select Check program are important, but this week we'll provide a few more ideas to help.

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TAX TIP OF THE WEEK: Breaking Down the "ABC" Test for Determining Your Worker's 1099 or W-2 Reportable Status

Organizations doing business and generating revenue in California have a new test to determine whether someone should be classified as an employee or independent contractor under state law; and thus 1099 or W-2 reportable. Let's break it down further in this week's tax tip.

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THIS MONTH'S FEATURED ARTICLE: When You Should Request A New W-8 From Your Payee

The Forms W-8 can be tricky when it comes to validity periods. This month let's tackle the issues surrounding when accounts payable departments should request new Forms W-8 from existing vendors/contractors.

At first glance IRS rules seem fairly straight forward in regards to when you need to request a new Form W-8 from your payees. In short, this should be done:

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TAX TIP OF THE WEEK: Vermont Leaves the Combined Federal/State 1099 Filing Program

Under the IRS Combined Federal/State Filing program organizations can have 1099's reported to the IRS forwarded on to states participating in the program. However, and like Virginia, Vermont is now out.

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TAX TIP OF THE WEEK: An Overview of IRS Guidance Regarding Foreign TIN's and Forms W-8

The issue of validating Forms W-8 and dealing with the payee foreign TIN requirement continue to bedevil accounts payable departments processing payments made to Non-U.S. Persons. Here's some tips to help.

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THIS MONTH'S FEATURED ARTICLE: Payee TIN Solicitation Tips for Accounts Payable

In terms of performing your in-year 1099 compliance few tasks are more important than using the Form W-9 to solicit the payee's TIN (taxpayer identification number) in an appropriate manner. Here's our top tips to help you in 2018!

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TAX TIP OF THE WEEK: Watch Out for Expensing Business Entertainment This Year - The Rules Have Changed

The Tax Cuts and Jobs Act passed in December of 2017 includes major changes to your organization's ability to avoid W-2/1099 reporting entertainment related fringe benefits - including those for sports tickets and membership dues. Here's what you need to know.

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THIS MONTH'S FEATURED ARTICLE: Why AP Needs to Understand W-8BEN-E Treaty Benefits Claims Involving LOB

Limitations on benefits (LOB) provisions of treaties need to be understood by everyone in accounts payable. Particularly if you are making 1042-S reportable payments and your payee requests on the W-8BEN-E treaty benefits that lower the rate of withholding.

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TAX TIP OF THE WEEK: Avoid These Common Form 1042 Filing Errors

The Form 1042-S attracts the lion's share of the attention when reporting payments of U.S. sourced income made to foreign payees. However, the Form 1042 is equally important. Let's take a look at some mistakes you want to make sure you avoid this filing season.

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THIS MONTH'S FEATURED ARTICLE: IRS Mulling Major Changes to W-2, 1099-MISC, and 941 E-Filing Thresholds

On January 10th the National Taxpayer Advocate recommended that the IRS substantially modify longstanding e-filing thresholds for Forms W-2, 1099-MISC, and 941. Let's take a look at what the IRS is planning for Accounts Payable and Payroll.

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