Tax & Accounting Blog

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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

Trustee and Custodian Requirements to Issue Transfer Statements

Trustee and Custodian Requirements to Issue Transfer Statements

Transfer statements are required as a means of passing along adjusted basis information on tax lots of covered securities when these are transferred to a receiving custodian or broker. Transfer statements are also required to inform a receiving custodian or broker which items are uncovered securities; a transferred security is presumed to be a covered security unless … Read More

Kentucky Offers Tax Amnesty, Cutting Interest in Half and Waiving Penalties

Kentucky Offers Tax Amnesty, Cutting Interest in Half and Waiving Penalties

The new Kentucky Tax Amnesty Act authorizes a tax amnesty program, which will be run by the state Department of Revenue for a period of no less than 60 days and no more than 120 days beginning on a date yet to be set in the fiscal year July 1, 2012 to June 30, 2013. … Read More

Worker Classification Compliance: Maine Adopts Legislation Defining “Independent Contractor”

Worker Classification Compliance: Maine Adopts Legislation Defining “Independent Contractor”

“Worker classification” is the term used for the process of identifying which workers must be treated as employees of your organization, and which workers must be treated as legitimate nonemployee independent contractors. Worker classification cases are a major focus for the IRS and for many state governments as well, and there is cooperation among federal and state … Read More