Articles and Tax Tips

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.

AP pro's are traditionally instructed that when an attorney is paid for services they did not perform for your organization that amount is reported in Box 14 of the Form 1099-MISC. But does this only apply to "gross proceeds" or does it apply to actual payments to the attorney. This week let's explore this highly technical issue.

Treaty benefit claims if anything have been made more complex because of the newly released Forms W-8BEN, W-8BEN-E, and 8233. This week let's look at when the Form 8233 is acceptable documentation in such instances.

The IRS expects that Accounts Payable professionals will approach prospective payees with certain “presumptions” in mind when you are attempting to reliably associate a taxable payment with valid documentation. This week let's examine the three most important standards.

A B-Notice (IRS Notice CP-2100 or CP-2100A) list is a notification from the IRS informing you that you filed Forms 1099 with incorrect TIN/name combinations. But do you have to contact every payee showing up on the B-Notice list? Let's take a look in this week's tax tip.

Form 1099-MISC Box 14 is an important but tricky box that requires careful attention. In short you report in box 14 those situations where your organization has been involved in a legal action and a settlement payment is forthcoming. Seems simple enough, but as always the devil is in the details.

One of the big new changes to the Form W-8BEN involves treaty benefit claims and the new ability to accept a Foreign taxpayer identification number (TIN) in lieu of a U.S. TIN. This week let's delve further into this new IRS requirement and determine how far your due diligence validation obligations extend.