Articles and Tax Tips

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...

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.

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....

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:

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.

Hopefully everybody is very well aware that the IRS has been more than a little busy this spring. In addition to the release of the first brand new Forms W-8 since 2006, related instructions for the W-8EXP and W-8ECI, and more....the IRS has also released the finalized Form W-8BEN-E. To that end this week let's look at one key issue presented by the new form.