Articles and Tax Tips

Alabama has joined the slew of other states recently updating or expanding their tax framework to ensnare out of state businesses. As such accounts payable departments need to watch out. You now have a new tax and reporting requirement for sales and use tax related payments involving revenue generated within or connected to the state of Alabama.

As filing season approaches we want to make sure you are ready. As such, this week let’s look at some special issues you need to be aware of when it comes to validating and reporting payments associated with the Form1099-INT.

With the rollout of the Foreign Account Tax Compliance Act (FATCA) we have been seeing several compliance problems cropping up in regards to both the Forms W-8 and W-9. This week let's look at one such W-9 related problem, and what you should do about it.

Definitions matter. When the IRS classifies you as a withholding agent you have compliance, due diligence, reporting, and withholding responsibilities that your Accounts Payable department must be ready to execute at the highest level of competency - particularly when a payment of U.S. sourced income is made to a Non-Resident Alien payee.

The IRS has recently updated guidance on how Accounts Payable and Tax pro's should handle emailed Forms W-8 when it comes to documenting payments of U.S. sourced income made to Non-Resident Aliens, or for FATCA reporting purposes.

This week let's follow up on our discussion of reporting payments to attorneys and for settlements by taking a look at what to do when multiple parties are involved in the transaction (as is typically the case).

Fall is here. That means reporting season is around the corner, and it's time to get ready. There are many payment situations that can trip you up when it comes time to Form 1099 report. This week we shall examine one: payments to attorneys and for settlements reported on  Forms 1099.