Articles and Tax Tips

For many of us Transmitter Control Codes (TCC) are an integral part of filing season and are relatively easy to use. That said, don’t let simple mistakes trip you up. For instance, do you know what to do when faced with filing for both your company and its affiliates?

This issue is quite common and brings up an IRS method for reporting income based upon the doctrine of “constructive receipt.” Under this doctrine, the payment amount should be reported..

In order for B-Notice backup withholding to end, the payee must provide the appropriate documentation. If the backup withholding resulted from failure to respond to a First B-Notice, the payee must provide...

The "eyeball test" is found in Section 1.6049-4(c)(1)(ii) of the tax regulations, and allows you to use documentation other than the Form W-9 to determine a company's exempt status. However, you need to exercise caution when "eyeballing" it…

You only need to report a prize or award when...

You are required to obtain a Form W-9 signed under penalty of perjury when...

By the time you get done with your year end review process and sending out payee statements you may be tempted to take some short cuts. Although such an impulse would be understandable don't make crucial filing errors because you relaxed too soon. The IRS is very particular about how you file, not just when you file.  

Reporting lease payments is always tricky. In particular third party payors often struggle with the difference between capital leases and operational leases. This leads to multiple questions regarding identification and reporting.

The majority of states have some type of Form 1099 equivalent, although only for work performed in that state or paid to residents of that state.

Payments of U.S.-source income to non-U.S. persons are reportable on Form 1042-S and subject to 30% withholding. Seems simple enough, but it can get tricky real fast when one considers that the IRS applies different sourcing rules to different types of income....