Articles and Tax Tips

TAX TIP OF THE WEEK: IRS Guidance You Can Rely Upon

You have a reporting issue. You talk with different IRS representatives but they give you conflicting answers. You find an internal IRS memorandum or even a page on the IRS website that seems to provide a clear answer. Can you base your reporting decision on this documentation?

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TAX TIP OF THE WEEK: The Correct Way to Process Forms W-8

You have a Non-US Payee, let's say Swedish, and they have provided you with the Form W-8 that you requested they complete. Job done, right? Wrong. This week let's take a look at several important validation steps that you must complete when accepting a Form W-8.

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: How To Document Payees Claiming Treaty Benefits

Perhaps no information reporting issue is currently under greater IRS scrutiny than payments made to Non-Resident Aliens. Accordingly, this month's subscriber article takes a look at one particularly tricky part of this process: documenting Non-Resident Alien payee's claiming treaty benefits.

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TAX TIP OF THE WEEK: U.S. Sourcing and Payment Classification

You have a Canadian software provider with servers in the U.S. The services provided include data cleansing and internet access use. In this week's tax tip let us examine whether such services are U.S. sourced and if so how you should classify the payment.

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TAX TIP OF THE WEEK: Making Sense of the New W-9 & The FATCA Exempt Payee Code

Late in August 2013 the IRS released a new Form W-9. Among other things this new W-9 features a number of changes prompted by FATCA (the Foreign Account Tax Compliance Act). In this week's tip let's take a more in depth look at one such change.

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Solutions for Eight of the Trickiest B-Notice Processing Issues

The IRS B-Notice informs a payer that he or she may be responsible for backup withholding and may need to pay to the IRS 28% for domestic payees if certain conditions are met. This article is meant to act a as a troubleshooting tool for your use during this 2013 Fall B-Notice Season.

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TAX TIP OF THE WEEK: The Fall B-Notice Waiting Game

Fall B-Notice season is upon us. You wait, and wait, but where is your B-Notice listing? What should you do? For this week's tax tip let's take a look at what you are waiting for, and why this will determine whether or not you will see a CP2100 or CP2100A notice (i.e. B-Notice).

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TAX TIP OF THE WEEK: Form 1099-K B-Notice and Penalty Relief Extended Under Certain Circumstances

There has been some recent new news on payment card transactions and the Form 1099-K vis a vis this fall's IRS B-Notices and Penalty Notices....

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TAX TIP OF THE WEEK: How to Handle Settlement Payments Paid in Multiple Years

When payments are made to a single payee in one year but then cashed in another year reporting can get tricky. But what happens if the payment arises out of the same settlement and is made to different parties in two different years? In this week's tax tip let's take a look at such a situation.

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Evaluating The Effectiveness of One Typical 972-CG Waiver Request Excuse

In July the IRS started sending out its Forms 972-CG – the dreaded Proposed Penalty Notice. As such, the unfortunate recipients of these notices have been readying their excuses as to why the proposed penalty should be waived. Let's see how one top excuse actually stacks up in terms of its effectiveness...

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