Articles and Tax Tips

TAX TIP OF THE WEEK: The Accountable Plan Rules Documentation Requirements

The commonly relied upon "accountable plan" rules provide a vehicle for handling reimbursed expenses. However, we have found that the adequate accounting requirements for the documentation of employee's expenses are often not fully being satisfied. As such, this week let's review these due diligence requirements.

 

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TAX TIP OF THE WEEK: A More In Depth Look at the Recent Changes in FATCA Implementation

Earlier this summer the IRS released Notice 2013-43 revising the Foreign Account Tax Compliance Act (FATCA) implementation guidelines. In this week's tax tip we shall take a detailed look at the new timeline (with guidance provided on what the changes mean for you).

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Simple Tips Toward Crafting a Better 972-CG Waiver Request Letter

Processing IRS Form 972-CG, otherwise known as the “Proposed Penalty Notice”, is never easy. As such, let's take a more detailed look at the most important weapon in your arsenal for responding if you receive a Form 972-CG - the waiver request letter.

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TAX TIP OF THE WEEK: Associations and the W-9 - Exempt or Not?

With filing season still months away this is a time in the year to focus on honing your documentation policies and procedures. To that end, you are likely currently collecting Forms W-9 from payees seeking to advance all kinds of reasons why they are exempt from reporting. This week we will take a look at one such claim: that made by the "Association".

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TAX TIP OF THE WEEK: What You Need to Know About Electronically Delivered Forms W-8

There is quite a bit of confusion about whether or not it is acceptable to accept Forms W-8 from Non-Resident Alien (NRA) Payees. As such, in this week's subscriber only tax tip let's take a more in-depth look at the electronically submitted Form W-8.

 

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Eight NRA Reporting and Withholding Exceptions - Scholarships, Fellowships, and Grants

In general, any payments of scholarships, fellowships, and grants paid to U.S. citizens and resident aliens are not reportable or subject to withholding. However, if the same classes of payments are being made to Non-Resident Aliens then watch out...

 

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TAX TIP OF THE WEEK: Defining Effectively Connected Income

We have found that there is a fair amount of confusion regarding the meaning of the term "effectively connected income." Given that identifying such income is crucial in terms of properly documenting and reporting certain Non-Resident Alien payees let's take a closer look at what this term means.

 

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TAX TIP OF THE WEEK: Determining Resident Alien Tax Residency for Reporting Purposes

There are two primary tests for determining resident alien status under U.S. tax residency rules. This week let's identify and look at each of these tests as follows:

 

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Analyzing Changes Made to the Updated Draft Form W-8BEN-E

Late last month the IRS followed its recent release of updated Draft Forms W-9 and W-8BEN with an updated Draft Form W-8BEN-E. Though drafts of the W-8BEN and BEN-E had been released last summer these new changes stem from this January's issuance of the FATCA final regulations. Here is what you need to know about the big changes made to the new W-8BEN-E:

 

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TAX TIP OF THE WEEK: New Draft Form W-9 Features FATCA Inspired Due Diligence Changes

Late last week the IRS released two new draft forms: one of the W-8BEN and the other the W-9 (provided below with it's instructions). This week we compare this new draft Form W-9 to the current Form W-9; pointing out some of the key distinctions (including those related to the FATCA final regulations released in January) which will impact your compliance requirements.

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