Articles and Tax Tips

 IRS Form 972-CG (also known as “The Proposed Penalty Notice”) is one of the more serious communications you can receive from the IRS. It demands a response. What is more, a response indicating an ignorance of the law can cost you big time. And you need to be ready, next month penalty notice season gets going in full swing.

The tax rules for determining whether a foreign national is a resident alien or a nonresident alien are tied to the foreign national’s U.S. immigration status and U.S. presence. Determining the date such a payee earns and ends resident alien status is far from easy.

FICA tax liability on payments made to foreign students, scholars, teachers, researchers, and trainees may sound like an easy topic, but it actually has several traps that can trip up the unwary higher education AP department. This week let's take a deeper look at this issue.

Late last month a California Court of Appels issued a ruling which has a direct impact on out of state businesses generating in-state revenue (known in the parlance of our times as "nexus"). This week let's take a deeper look at this ruling.

The IRS TIN Matching Program is an internet-based program allowing payers to verify if a payee’s name and TIN matches what the IRS has on its records.To use the program your organization's principal has to be the one to sign up. But who is your principal?

Colorado's growing economy means there is a greater likelihood that your out of state organization is doing in-state business generating revenue leaving you subject to State 1099 reporting and compliance laws. This week let's take a brief look Colorado, with an eye towards what it requires of Accounts Payable professionals.

Here we are in the waning weeks of spring and suddenly your vendor sends you a new Form W-9 showing that they have incorporated. This week let's examine exactly how to handle such a situation.

We always tell our clients that the key to understanding your IRS due diligence compliance and reporting requirements revolves around answering two questions: who is your payee and what is the payment for? In the case of the Non-Resident Alien payee this can get tricky fast.