Articles and Tax Tips

THIS MONTH'S FEATURED ARTICLE: Twenty Nexus Tips Regarding State Reporting

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 requirements. Determining nexus is far from simple and is highly fact and circumstance dependent. As such the analytical framework that you develop will be a key component of your state level compliance and reporting efforts. What follows are twenty key elements/questions that you should consider in determining whether or not you have nexus with a particular state.

 

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TAX TIP OF THE WEEK: Big Changes to TIPRA 3% Withholding Requirement

In an effort to close the tax gap, difference between the amount of tax owed by taxpayers and the amount of tax voluntarily paid to the IRS, Congress had sought to deal with poor tax compliance by some government contractors that have been identified as a contributing factor to the tax gap. However…

 

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TAX TIP OF THE WEEK: Making Sure Your Mailings are IRS Compliant

The IRS has issued final regulations regarding the issue posed of proving a timely mailing so as to meet the requirements of a timely filing; and thus avoid a proposed penalty or other negative interaction with the IRS. In essence what the IRS is doing here is addressing the ongoing confusion over what constitutes “prima facie” evidence of the successful delivery of documents that have a tax filing deadline when there is no direct proof of actual delivery. To that end the new regulations clearly and unequivocally state that....

 

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THIS MONTH'S FEATURED ARTICLE: Validating Your Vendors Prior to Filing Season

Given filing season is right around the corner one of the most important tasks every AP department should be engaging in well before the new year starts is to “validate the vendors.” With data validation in mind, the following thirteen tips are therefore designed to help you prepare for a smooth filing season in 2012:

 

TIP #1: Run your payees through the Free IRS TIN Match Program, checking for name/TIN mismatches

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TAX TIP OF THE WEEK: THE IRS Ramps Up Worker Classification Audits

In this past year the IRS has upped the ante in regards to audits of organizations that mistakenly classify workers as independent contractors whom the IRS believes to be employees. The ramifications of misclassifying your workers are huge and include not only penalties and interest, but also back taxes and benefits never paid to the worker or to federal or state governments in regards to FICA and FUTA. That said, there is an important new tool available to help you if you think you might have improperly misclassified a worker....

 

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THIS MONTH'S FEATURED ARTICLE: Are You Ready for Increased IRS Audits?

By Steven D. Mercatante Esq.

 
In recent years, the IRS has noticeably ramped up its efforts to close the tax gap (gap between tax revenue owed to the IRS and what the IRS collects). Increasing enforcement measures, including massively expanded audit programs, targeted at third party reporters (third party reporters chiefly include organizations making payments to non-employees) are among the primary means the IRS has sought to close a tax gap estimated at well over $300 billion in 2010. The period of minimal IRS Form 1099 examinations has long since ended. 

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TAX TIP OF THE WEEK: A Reminder On Proposed Penalty Notice Response Deadlines

It's that time of year again. That's right, in the coming weeks, the more unfortunate information reporters will be receiving from the IRS the dreaded Form 972-CG "proposed penalty notice". Please note that one of the most important items you need to address when responding to a Form 972-CG is....

 

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THIS MONTH'S FEATURED ARTICLE: Why Increased Regulation is a Boon for AP Departments Everywhere

This month's article focuses on an issue that recently came to my attention when speaking at IAPP's Fusion 2011 Conference in May - one that has crucial importance to AP departments and their staffs all across the country.

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THIS MONTH'S FEATURED ARTICLE: Wild Ride: AP and AR Face Worldwide Tempest in Tax and Regulatory Issues

Our very own Steven Mercatante Esq. is quoted extensively in a featured article from the March-April 2011 Issue of Financial Matters regarding the reasons and means by which governing bodies around the world, especially U.S. federal and state governments, are ratcheting up their focus on noncompliance and tax evasion all at once. Make sure you take the time to see what leading industry insiders are saying about today's regulatory landscape!

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UPCOMING SPEAKING ENGAGEMENT

International Accounts Payable Professionals (IAPP) has invited TIR's own Steven Mercatante Esq. to speak at Fusion 2011 held this year in Orlando, Florida from May 8-12th. Reserve your spot today!

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