Articles and Tax Tips
Though the IRS has long allowed the creation of and filing of substitute forms 1099 there are a number of problem areas that can trap the unwary filer. As such, here are two problems posed by IRS guidance that can be less than a model of clarity; and what you should do in response.
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:
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.
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...