Articles and Tax Tips

The problem posed by payee’s reluctant to divulge their name and taxpayer identification number (TIN) is a common one often leaving you scratching your head as to how best handle such a situation. Here is a simple solution for dealing with just such a payee:

You receive a W8 Ben without a SSN/ITIN or EIN for line 6.  The work will be performed in Sweden and the vendor has checked box 9A claiming Treaty Benefits for Sweden. Can you spot the issues here? We hope so as there are two elements in particular that you need to key on in this fact pattern…

A 1099 reporting/compliance question that frequently comes up regards the payee's obligation to mail a 1099 when the last known address is incorrect, and you cannot seem to track them down. Here is how you should handle such situations:

The Facts: A group of individuals from Puerto Rico have incorporated their band under a single name. The band then performs in the U.S. for your organization. The Question: Should 30% Non-Resident Alien withholding and Form 1042-S reporting apply? The Answer: ...

Regrettably the reporting situation presented by an untimely death is all too common. Are you prepared when this happens? If not, you need to be as there are vital differences between handling payments made involving this vendor and/or the possible entities that represent the deceased after their passing.

How to handle a vendor that provides 1099 reportable services, but to whom you have also issued an advance on an equipment purchase can be a tricky issue that needs to be handled with care...

If you have encountered such a situation do not worry. This is actually a relatively common occurrence. That said, you will need to address this problem, but your response will be dependent upon if you file on paper or electronically. 

The “TIN” or "Taxpayer Identification Number" is the identifying number assigned to a "person" under Internal Revenue Code, Section 6109. TIN's take a variety of forms and thus how the IRS differentiates its treatment of different types of TIN's matters significantly in terms of your compliance efforts...