Articles and Tax Tips

TAX TIP OF THE WEEK: Should You Report a Consultant's Travel Expenses?

Though Non Resident Alien Reporting, FATCA, and misclassified workers are currently prime areas of IRS enforcement focus please note that reimbursements and fringe benefit payments also remain one of your most important compliance issues in terms of avoiding mistakes that can lead to penalty or audit. Let's take a further look here at reimbursements.

 

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THIS MONTH's FEATURED SUBSCRIBER ARTICLE: Breaking Down the Draft Form W-8IMY

In August the IRS issued a new draft Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding. This article will break down the voluminous changes made to the W-8IMY, so be prepared; for your documentation and validation requirements are going to be quite a bit more difficult.

 

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TAX TIP OF THE WEEK: Is a Cooperative Reportable and/or Taxable?

The tax treatment of cooperatives traps up many an unwary filer. In particular this is because there is an interplay between federal and individual state laws that can cause further confusion. As such, here are a few tips for handling cooperative reporting:

 

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TAX TIP OF THE WEEK: Handling the W-9 With Multiple Line Two Names

You sign up a new vendor, let's say a medical service provider, and send them a Form W-9. Sounds simple enough. But, when you get back the completed W-9 there is a company name on line one and a list of several dozen people that are a d/b/a of the company name on line two who are all under the same TIN.  To whom should you report?

 

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: Why Aren't You Using the Free IRS TIN Match Program?

We have had way too many conversations recently with those of you who are still not using the IRS TIN Match Program to validate their payees. As such, the following will provide a brief overview of what the program is, what it does, and a few questions we typically get regarding signing up for and using the program - with our answers. 

 

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TAX TIP OF THE WEEK: Are Sponsorships Reportable?

The reportability of payments made for sponsorships continues to be of interest from some of your AP peers; as does questions regarding the status of the payee, for instance whether or not their exempt status from being reported to impacts how they in turn report. So what does all this mean for sponsorship reportability? It's actually prettle simple.

 

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TAX TIP OF THE WEEK: Validating The Single Member LLC

LLC's (limited liability companies) cause numerous questions when it's time to validate the information you have collected on the IRS Form W-9. For instance, in regards to the single member LLC, which TIN should you document: the SSN of the single-member or the EIN of the LLC?

 

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TAX TIP OF THE WEEK: Is a Court Filing Fee Reportable?

Hopefully, your team is familiar with those situations when the IRS allows you to avoid reporting payments made for services. Among those exempt recipients include governmental entities. But, does this change when the governmental entity is collecting a filing fee involving a settlement payment?

 

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TAX TIP OF THE WEEK: A Test for You and Your Staff

How would you (or the members of your team) handle a situation whereby one company wants to do the information reporting for all commissions paid to sales agents selling products of another company that it is working with? Read on for the full fact pattern and our answer/analysis:

 

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THIS MONTH'S FEATURED SUBSCRIBER ARTICLE: What You Need to Know About The New Draft Forms W-8BEN

June’s big news was the new IRS draft Forms W-8BEN in response to the Foreign Account Taxpayer Compliance Act (FATCA). This article breaks down for our subscribers these huge changes (including the 14 key changes to compliance and reporting procedures), and what you should be doing in response.

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