Articles and Tax Tips

TAX TIP OF THE WEEK: How Long Should you Hold on to Your Forms W-9?

Record retention is an important part of your due dilligence compliance requirements vis a vis Federal and U.S. State law. Therefore, we have a special suggestion when it comes to deciding when it is appropriate to dispose of past payee documentation.

 

[Full text available to TIR Answer Center subscribers. Subscribe to read full article.]

THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: State Reporting Nexus Tips

Nexus is a legal term of art that describes the connection you have with a specific state, such that you are subject to those state tax reporting requirements. Determining nexus is a highly fact and circumstance dependent exercise. What follows are some of the elements you should consider in determining whether or not you have nexus with a particular state:

 

[Full text available to TIR Answer Center subscribers. Subscribe to read full article.]

TAX TIP OF THE WEEK: Reporting Payments Made to Incorporated Non-U.S. Legal Service Providers

Everyone knows that payments made to U.S. incorporated legal service providers are for the most part reportable on the Form 1099-MISC. However, do the Form 1099-MISC exceptions to reporting legal service providers hold true when the legal service provider is a Non-U.S. Person?

 

[Full text available to TIR Answer Center subscribers. Subscribe to read full article.]

TAX TIP OF THE WEEK: What to Do When Your Payee Reorganizes

You have a payee and during the year they decide to reorganize; for example from an LLC to a Corporation or even vice versa. Do you know what compliance steps you need to take in response prior to the onset of filing season? 

 

[Full text available to TIR Answer Center subscribers. Subscribe to read full article.]

TAX TIP OF THE WEEK: Your Approach to the Prospective Non-Resident Alien Payee

Gathering documentation is critical to your compliance policy; especially when it comes to differentiating between the U.S. Person and a Non-Resident Alien. Let's review the basic steps in determining tax residency and the key question of payment sourcing in order to establish exactly how you should report a particular payment and payee.

 

[Full text available to TIR Answer Center subscribers. Subscribe to read full article.]

THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Certain FATCA Deadlines Extended

On October 24, 2012 the IRS, via Announcement 2012-42 postponed the full implementation of information reporting rules required by The Foreign Account Tax Compliance Act (FATCA). Though many will welcome this decision it still fails to answer important questions about FATCA. 

[Full text available to TIR Answer Center subscribers. Subscribe to read full article.]

TAX TIP OF THE WEEK: A Tricky 1042-S Situation for You to Consider

You hire a group of non-US payees that performed their US event, then practiced for their foreign event in the US.  Is the practice for the foreign event US source income or non-US source income?

 

[Full text available to TIR Answer Center subscribers. Subscribe to read full article.]

THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Evaluating a Common Form 972-CG Waiver Request Excuse

Recently the IRS sent 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...

 

[Full text available to TIR Answer Center subscribers. Subscribe to read full article.]

TAX TIP OF THE WEEK: The One Question You Need to Ask in Determining Reportability When Purchasing Goods and Services

The goods vs. services reporting debate in terms of separating out the one from the other when payment for each is mixed has long since been a plague upon AP compliance and filing efforts. As such, here is a simple question that will go a long way toward making your job easier.

 

[Full text available to TIR Answer Center subscribers. Subscribe to read full article.]

TAX TIP OF THE WEEK: A 972-CG Proposed Penalty Notice Fact Pattern and Answer

This fact pattern is based upon a real world proposed penalty notice set of facts from one of our clients. See if you can come up with an argument to request a waiver. Then read on for our recommended course of action, and learn why the most common argument for a waiver that will likely jump out at you may not be the best one.

 

The Facts:

[Full text available to TIR Answer Center subscribers. Subscribe to read full article.]