Tax & Accounting Blog

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What Is the Difference between a Qualified Intermediary and Non-Qualified Intermediary?

Although the Qualified Intermediary (QI) regime has been around for quite some time, simple questions surrounding the terminology and structure still remain quite common. For example, what is an Intermediary, a Qualified Intermediary, and a Non-Qualified Intermediary? An Intermediary is any person or organisation holding securities other than for its own account. A Qualified Intermediary is a … Read More

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IRS Resources for Identifying Tax-Exempt Organizations

A tax-exempt organization is an exempt recipient for purposes of tax information reporting, being generally exempt from being reported on a Form 1099.  The organization generally claims this exempt status on the Form W-9 it furnishes to you.  But, if you do not have a W-9, an alternate rule permits a payor to treat an … Read More

IRS Changes for Form 8809 Extension of Information Return Filing Deadline

IRS Changes for Form 8809 Extension of Information Return Filing Deadline

The IRS revised Form 8809, Application for Extension of Time to File Information Returns. There is a new procedure that determines whether you may use a paper copy of the Form 8809 or you need to go online to the IRS FIRE system and fill out Form 8809 by typing into the on-screen fill-in form.  You’ll be … Read More

New Versions of Forms W-8 Are Being Planned

New Versions of Forms W-8 Are Being Planned

The IRS is working on changes to the Forms W-8 you use for documentation that a payee is a foreign person, and documentation that a foreign beneficial owner of income is entitled to a reduced rate of tax withholding. The need for new Forms W-8 comes from FATCA, the Foreign Account Tax Compliance Act, most … Read More

Section 6050W Backup Withholding

Section 6050W Backup Withholding

In IRS Notice 2011-42 issued in May 2011, the IRS provided interim guidance for Third Party Settlement Organizations (TPSOs) with regard to backup withholding on payments to its participating payees.  The Notice eases backup withholding obligations for TPSOs, who may rely on this interim guidance until Section 3406 regulations are amended. The Notice provides that the Section … Read More