Tax & Accounting Blog

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Per Diem Expense Rates for Travel Reimbursement Now Published Only Online, IRS Publication 1542 Eliminated

The official source for the federal government per diem rates allowable for expense reimbursement in business travel away from home within the continental United States (CONUS) is the online information on the U.S. General Services Administration webpage  http://www.gsa.gov/portal/category/21287. On this webpage, you can also find links to the Department of Defense per diem rates … Read More

IRS Finds Common Errors in Forms 1099-R and 5498 for Simplified Employee Pension (SEP) Accounts

IRS Finds Common Errors in Forms 1099-R and 5498 for Simplified Employee Pension (SEP) Accounts

The IRS recently released the report of an SEP Plan Compliance Check project conducted by the Employee Plans Compliance Unit. The compliance check found numerous errors made by SEP plan sponsors and the financial institutions that file information returns to report SEP-IRA contribution information. As part of this project, the IRS contacted financial institutions and plan sponsors for … Read More

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 2: How Do I Know if My Organization Is a Withholding Agent?

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 2: How Do I Know if My Organization Is a Withholding Agent?

The IRS defines withholding agent very broadly. Every U.S. or foreign person who controls, holds custody of, receives, disposes of, or pays any item of income to a foreign person that is subject to NRA withholding is a withholding agent. A withholding agent includes (without limitation) individuals, corporations, partnerships, trusts, associations or any other entity … Read More

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The Tax Gap – IRS Oversight Board’s Annual Report (June 2012)

The IRS Oversight Board issued its annual report to Congress for 2011 in June (posted June 5, 2012). The report notes that the estimated net tax gap grew nearly $100 billion from 2001 (when the gap was last estimated) to 2006. Of particular interest is the Board’s assessment of the tax gap and IRS’ efforts to … Read More

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 1

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 1

The federal withholding and reporting rules for payments for personal services made to foreign nationals depend on the recipient’s federal tax residency status – resident alien or nonresident alien. Compensation payments to resident aliens are subject to the same rules for withholding and reporting as are such payments to U.S.citizens. These payments are not subject … Read More

Items to Consider In Nonresident Alien Payroll Processing

Items to Consider In Nonresident Alien Payroll Processing

Are all of your employees either U.S. citizens or U.S. lawful permanent residents? Form I-9, Work Authorization Verification, indicates a choice of four categories for employees: U.S. citizen U.S. national U.S. lawful permanent resident A nonimmigrant authorized to work through [a specified date] If no, do you capture immigration status history and U.S. presence … Read More