Articles and Tax Tips

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:

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?

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.

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?

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?

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:

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…