Articles and Tax Tips

Form 1099-MISC Box 14 comes into play in those situations where your organization has been involved in a legal action and a settlement payment is forthcoming. But be careful in how you use this box, as not all attorney reporting can be done via box 14.

In terms of your Form 1099 reporting you have two key initial tasks. Identifying your payee and identifying the payment type. This week let's look at two types of payments typically considered exempt (freight and goods) and discover when in fact they are not exempt from reporting.

Earlier this year the IRS created a new Form W-8BEN for individuals and released associated instructions. Let's look at one very big potential due diligence/compliance problem you face when a payee provides a Foreign Tax Identification number to claim treaty benefits. 

Requesting the IRS waive a proposed penalty (IRS Form 972-CG Proposed Penalty Notice) is one of the most important compliance tasks you can take. This week let's examine how your compliance history fits into your attempts to waive a proposed penalty.

The new Forms W-8 present a number of data collection and validation challenges that must be sorted out prior to reporting. But before you get carried away trying to solve the problems presented by the new W-8's don't forget to make sure you are asking the right payees to fill one out.....

The IRS B-Notice process is about to gear up for the fall. Are your compliance efforts ready? In this week's tax tip let's take a closer look at the documentation needed in a Second B-Notice situation.

The IRS Form 972-CG is one of the more feared letters one can get from the IRS. This is because even though you can get the proposed penalty waived the odds of doing so revolve around collecting the appropriate documentation and on your knowledge of the law. So let's look at those penalty related laws that may apply to the Form 1042-S...