Articles and Tax Tips

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.

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.

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).

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".

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.

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.

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: