Articles and Tax Tips

TAX TIP OF THE WEEK: Payees From Whom You Must Request a Form W-8

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.....

 

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Troubleshooting the New W-8BEN-E and Box 9a

On March 29, 2014, the IRS announced the release of the final Form W-8BEN-E for entities. This brand new form unfortunately offers a number of potential documentation and validation points that can create compliance problems for Form 1042/1042-S filers. This month let's look at one such potential problem: the W-8BEN-E's box 9a.

 

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TAX TIP OF THE WEEK: Do You Need an IRS Letter 147C to be "2nd B-Notice" Compliant?

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.

 

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TAX TIP OF THE WEEK: Forms 1042-S and the Law Undergirding the IRS Proposed Penalty Notice Process

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...

 

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Your New 1042/1042-S Withholding Requirements Compared

Recent changes in the law have dramatically revamped your requirements as a withholding agent (meaning virtually all U.S. third party payors) responsible for reporting using Forms 1042/1042-S. This month let's break down the differences between Non-Resident Alien withholding rules vs. the new 30% withholding under FATCA.

 

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TAX TIP OF THE WEEK: IRC Section 6721 and the Proposed Penalty for Failure to File A Correct Information Return

You receive an IRS proposed penalty (972-CG) for failure to file a correct information return. But what does this mean? This week let's look at IRC Section 6721 so we can take a first step in better understanding how to craft an effective abatement letter/waiver request to an IRS proposed penalty notice.

 

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TAX TIP OF THE WEEK: Form 1099 Compliance Involving Vendors Set Up with Card Issuer's as an Alternative Payee

Several years ago IRC Section 6050W provided new rules regarding payments made in settlement of payment card and third party network transactions. Though this law seems to have absolved the average accounts payable department from Form 1099 reporting there are still issues: particularly those involving potential third party network transactions....

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: IRS Changes ITIN Retention Rules

IRC Section 6109 requires that a payee provide a TIN (taxpayer identification number) to the payer when the payment will be reportable on an information return. Among the several types of TIN's you need to collect is the ITIN (or Individual Taxpayer Identification Numbers). This month let's take a look at the new IRS changes regarding ITIN retention rules.

 

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TAX TIP OF THE WEEK: IRS Releases Form W-8IMY Instructions

On June 19th the IRS released the Instructions for the new Form W-8IMY Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding and Reporting. Here are a couple of key highlights that you need to know about:

 

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TAX TIP OF THE WEEK: Where you Should Stand on the Form W-8BEN and Beneficial Owner Renewal

With all the recent IRS changes to the Forms W-8 (the first since 2006) what might have been lost in the shuffle are the important policies and procedures that you may have in place regarding issues such as Form W-8 retention in the context of Non-Resident Alien related compliance and reporting. As such this week let's look at the issues surrounding Form W-8BEN validity periods.

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