Articles and Tax Tips

TAX TIP OF THE WEEK: IRS Releases New Form W-8EXP

On April 16, 2014 the IRS released the final version of Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding and Reporting (Rev. April 2014).

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TAX TIP OF THE WEEK: An Update on Nexus and State Reporting

U.S. states are still currently and aggressively leveraging economic nexus to collect income tax revenue from out of state corporations doing in state business; even if that out of state business has no physical in-state presence. During this compliance season please watch out for the following states in particular:

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TAX TIP OF THE WEEK: How Long Must You Retain Form W-9's After Payments are Made and Forms 1099 are Issued?

With filing season winding down for most organizations this is the time of the year that we often get questions regarding how long your AP department should hold onto previous year's filed Forms 1099 and other such related records. In short there are two schools of thought on this issue, however this is what we recommend that you do...

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: How to Know When Employee Travel Expenses are Excludable from Wages

As you hopefully know reimbursements your organization provides for an employee traveling on business (including for transportation, lodging, meals, and more) outside of the area of his/her tax home may be excludable from wages. But when is this not the case? Read on and learn what you should be looking for in order to avoid falling into an all too easy compliance trap.

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TAX TIP OF THE WEEK: You Get a W-9 Back From a Canadian Corporation With A U.S. Address - What Do You Do?

You have received an invoice and Form W-9 from a corporation whose TIN starts with 98. Read on for more relevant information, decide what you would do with this vendor; and then see our analysis as to what you should consider vis a vis your IRS documentation, validation, and compliance requirements.

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TAX TIP OF THE WEEK: Is This Former Employee Really An Independent Contractor?

For this week's tax tip let's take a look at a real world situation. This one involves a former employee who has started their own company, and yet gets approximately 80% of their business from their former employer. Read on for more facts, and then our analysis as we try and determine how the IRS would classify this payee.

The Facts:

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Settlement Payments and Court Filing Fees - To Whom Do You Form 1099 Report?

Settlement payments have a well deserved reputation for causing Form 1099 reporting headaches. We spend quite a bit of time worrying about reporting to; claimants, their attorney, and so on. But there are often other payments associated with settlements which can have their own reporting consequences: such as court collected filing fees.

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TAX TIP OF THE WEEK: Your Payees and The New W-9's New Exempt Payee Code Field

Hopefully you know that the new (August 2013) Form W-9 form has a new provision entitled “Exempt payee code (if any)”. However, must your payee fill in this field if they fall under one of the 13 listed exemption groups? In this week's tax tip let's take a look at IRS expectations regarding your compliance requirements and this new field.

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TAX TIP OF THE WEEK: How Many Times Must I Solicit a Payee For a Missing TIN?

It's that time of the year again. You are preparing to file information returns and lo and behold you can't find your vendor's TIN. No B-Notice has ever been issued but the question remains; how many times per year does the Internal Revenue Code require you to solicit a payee for a missing TIN?

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: To Whom Do You Report When Your Vendor Passes Away?

You have a vendor who passed away, but you still have invoices that need to be paid. From there you receive paperwork indicating payment should be made to the vendor's estate. What should you do? Report to the vendor/contractor or to their estate?

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