Tax & Accounting Blog

Draft of new Form W-8ECI released by the IRS

Draft of new Form W-8ECI released by the IRS

The fourth in the new series of Forms W-8 has been released for public comment.  The W-8IMY has been revised so that the form will serve as documentation for compliance with both Chapter 4 (FATCA) of the Internal Revenue Code and Chapter 3 of the Code (the Section 1441 nonresident alien withholding-at-source requirements, some amendments … Read More

IRS discontinues tiered audit issue rankings

IRS discontinues tiered audit issue rankings

Since 2006, the IRS has used Tiered Issue rankings to set priorities for tax examinations and enforcement in tax areas that it believed posed the highest challenges in compliance or the abuse of tax law.  Now, however, the tiered issue process is being replaced with what the IRS Large Business and International division is calling … Read More

Federal per diem expense allowance updates effective October 1, 2012

Federal per diem expense allowance updates effective October 1, 2012

The federal per diem expense allowance rates for 2013, effective beginning October 1, have been issued in GSA Bulletin 13-01.  The standard lodging per diem rate of $77 will continue to remain in effect for the period of federal fiscal year 2013, October 1, 2012, through September 30, 2013.  The meals and incidental expense (M&I) … Read More

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 10: Exemption Codes

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 10: Exemption Codes

Exemption Codes indicate the reason that taxes were not withheld on the gross income being reported. Exemption Codes typically used for payments to foreign vendors are 00, 01, 02, 03, and 04. Code 00 in the Exemption Code field indicates the gross income was subject to NRA withholding. Exemption Code 00 is also used to … Read More

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 8: Compensation for Service Fees Income Codes

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 8: Compensation for Service Fees Income Codes

IRS Publication 515, Table 2, Compensation for Personal Services Performed in United States Exempt from Withholding and U.S. Income Tax Under Income Tax Treaties, assigns Income Codes to the categories of income described in the table and describes the various limitations that apply to each type of income. All of the following Income Codes … Read More

Indiana changes in state income tax withholding deposit and reporting

Indiana changes in state income tax withholding deposit and reporting

If you withhold Indiana personal income tax from retirement distributions, be alert for procedural changes in remitting and reporting to the Indiana Department of Revenue in 2013.  Effective January 1, 2013, all entities that withhold Indiana income tax must remit the withheld taxes electronically and file the withholding report WH-1 electronically.  Electronic filing and reporting … Read More