Articles and Tax Tips

THIS MONTH'S FEATURED ARTICLE: What AP Needs to Know About The New Tax Exempt Organization Search Tool

Last month the IRS released a new Tax Exempt Organization Search Tool to replace the Select Check program you use to validate such payees as part of your 1099 due diligence tasks. Let's look at what Accounts Payable needs to know to meet the new IRS 1099 compliance requirements.

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TAX TIP OF THE WEEK: Red Flags Your 1099 Reportable Entity Payee May Have a New EIN Requiring You to Update The W-9 You Have on File

With a new W-9 out AP departments often ask: must I update my payee's information? You do, if TIN related information has changed. Let's look at EIN red flags requiring a response under IRS due diligence rules.

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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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