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Articles and Tax Tips

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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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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Are you still filing your 1099s on paper forms? We hope not. Filing returns on paper forms takes more time and produces greater errors. When filing paper forms, there is a risk that the scanner will not properly read the information included on the return, as wll as a higher risk for payer errors when transferring data by hand. As opposed to paper filing, filing electronically through the FIRE system has many advantages...

 

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It is now critical that you properly report to individual US states but knowing in which states you have reporting requirements and effectively reporting is easier said than done. This article will introduce you to the basics of state reporting....

 

 

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On Wednesday December 15, 2010 The Internal Revenue Service announced it not only increased audits by 11 percent in the budget year that ended this past September but also that enforcement revenue climbed 18 percent. Moreover businesses were a prime target of these audits with a 7 percent increase in the number of audits of firms with $10 million or more in assets. One of the primary tools you can create to help in case you are audited is a policies and procedures manual….

 

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On August 16, 2010 the IRS issued guidelines regarding the mandatory information reporting of payments made to merchants by third parties and information reporting penalties and backup withholding rules for third party and payment card transactions. In addition, the IRS has also released a draft of a new information reporting form, Draft Form 1099-K; a form that has a couple of key items worth reviewing by information reporters. In particular...

 

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Internal Revenue Code 6050W, regarding payment card transactions for payments made after December 31, 2010, though greatly easing the vast majority of payors information reporting requirements still contains a number of traps for the unwary information reporter....

 

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Identifying “type two” errors in reporting is one of those compliance steps that we frequently take for granted as common knowledge. However, are you sure your staff can identify a type two error?

A type two error is one whereby the original return was filed with one or more of the following errors:

(a) No payee TIN (SSN, EIN, ITIN, QI-EIN)
(b) Incorrect payee TIN
(c) Incorrect payee name
(d) Wrong type of return indicator

See page twenty-one of this year’s version of Publication 1220 for more.

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In response to numerous recently received questions on this matter here is a short run down on how to handle LLC's under current reporting requirements….

 

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Our very own Steven Mercatante Esq. will be speaking on state reporting matters, in a Convey Compliance webinar scheduled for December 14, 2011 at 3pm EST. Don't miss out!

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