Tax & Accounting Blog

Form 1099: Pennsylvania has new requirement for 1099-MISC reporting for 2012

Form 1099: Pennsylvania has new requirement for 1099-MISC reporting for 2012

A new Pennsylvania tax law requires Form 1099-MISC reporting of some types of payments, beginning with reportable payments made in calendar year 2012 (reported in 2013).  Pennsylvania is not a participating state in the IRS Combined Federal/State Filing Program, so reportable 1099-MISC information will have to be filed directly to the Pennsylvania Department of Revenue. … Read More

FATCA: Switzerland and Japan sign statements for cooperation with the U.S. in FATCA implementation

FATCA: Switzerland and Japan sign statements for cooperation with the U.S. in FATCA implementation

The United States Treasury Department has issued a joint statement with Japan, and a joint statement with Switzerland, for intergovernmental cooperation in the implementation of the U.S. Foreign Account Tax Compliance Act (FATCA).   In both Japan and Switzerland, financial institutions may not be able to comply with all of the reporting, withholding and account closure … Read More

NEW W-8IMY FORM:  DRAFT RELEASED BY IRS

NEW W-8IMY FORM: DRAFT RELEASED BY IRS

The third in a series of revised Forms W-8 has been released, in draft form, by the IRS.  The draft Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding, is part of the process of making the W-8 series of forms serve for purposes of compliance … Read More

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 2: Payments to Beneficial Owners Recipient Code

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 2: Payments to Beneficial Owners Recipient Code

In order to report income and taxes properly, payers must generally maintain a record in the name of the income recipient even if payment is made to a different payee. Generally, the recipient named on the Form 1042-S is the individual (Code 01) or entity such as a corporation (Code 02) that is the … Read More

New French Law on the Taxation of Trusts

New French Law on the Taxation of Trusts

On July 29, 2011, France enacted a new law on the taxation of trusts. Under the new law, a trustee must disclose certain information about the trust if the trust has a French settlor, beneficiary or French assets. The trustee must file the disclosure by June 15. The government was to provide further details on how to … Read More

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 11: What if the Payment Includes Both U.S. Source and Foreign Source Income?

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 11: What if the Payment Includes Both U.S. Source and Foreign Source Income?

If you know that the payment includes both U.S. source and foreign source income and you do not have a reasonable allocation of the U.S. source amount, you must treat the entire amount as U.S. source income. The recipient of the income can submit a U.S. tax return with an allocation of the income between … Read More