Tax & Accounting Blog

Form 1042-S Information Reporting to Non-U.S. Persons Part 2: Payments Not Reportable on Form 1042-S

Form 1042-S Information Reporting to Non-U.S. Persons Part 2: Payments Not Reportable on Form 1042-S

Income payments not subject to NRA withholding are also not subject to Form 1042-S reporting. They include: • Income excluded from income under section 61 (e.g., qualified scholarships and fellowships). • Proceeds on sales of U.S. real property interests by non-U.S. persons (use Form 8288). • Partnership profits reported by the partnership to a … Read More

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Switzerland and the United States Sign Bilateral Intergovernmental Agreement for Implementation of FATCA

The U.S. Department of the Treasury has announced the signing of a bilateral agreement with the government of Switzerland to facilitate implementation of the information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act (FATCA). “Today’s announcement marks a significant step forward in our efforts to work collaboratively to combat offshore … Read More

Form 1042-S Information Reporting to Non-U.S. Persons Part 1

Form 1042-S Information Reporting to Non-U.S. Persons Part 1

Income payments made to non-U.S. persons must be reported on a Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, not on a Form 1099. Unlike Form 1099-reportable payments, there is no reporting exception for payments to corporations and no minimum dollar threshold for reporting on Form 1042-S. Reporting on Form 1042-S is … Read More

TIN truncation on Form 1099 payee statements will continue under new proposed regulations

TIN truncation on Form 1099 payee statements will continue under new proposed regulations

The IRS has published proposed new tax regulations for truncating taxpayer identification numbers on the recipient statements for Forms 1099 – including the expansion of TIN truncation to include not only paper 1099 statements, but also 1099 statements furnished electronically.  However, the proposed regulations limit TIN truncation to social security numbers (SSNs), individual taxpayer identification … Read More

IRS Adds Form 1099-B to the Combined Federal/State Reporting Program

IRS Adds Form 1099-B to the Combined Federal/State Reporting Program

The IRS has added Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, to the Combined Federal/State Reporting Program (CFSFP) beginning with the filing of Forms 1099-B for tax year 2012. As detailed in IRS Announcement 2013-3, this change is an important revision to the IRS electronic file specifications which originally were issued … Read More