Tax & Accounting Blog

Government Entities: One Step Closer to Repeal of the Law that Requires 3% Withholding on Vendor Payments

Government Entities: One Step Closer to Repeal of the Law that Requires 3% Withholding on Vendor Payments

The United States Senate joined the House of Representatives in passing H.R. 674 to repeal the 3% withholding requirement that is currently scheduled to begin in 2013 for vendor payments made by federal, state and local governments and their agencies and instrumentalities.  The Senate action puts us one step closer to repeal of the 3% withholding … Read More

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New W-9 (Rev. Dec 2011) Released

Over the past nine months, the IRS received multiple complaints about the recently released W-9 (Rev. Jan 2011). Criticism centered on the tax classification area, where the word, required, was added. This led filers to believe that the tax classification section was mandatory, where, in fact, it is not. Due to the high number of complaints, the IRS released a … Read More

QIs Have No Choice with Regard to FATCA

QIs Have No Choice with Regard to FATCA

In last week’s EEI conference, it was announced that Qualified Intermediaries (QIs) will have no choice but to register to become a Participating Foreign Financial Institution (PFFI). This announcement came as quite a shock to some of the QIs that attended the Washington event, who assumed that they have the choice of becoming a non-participating … Read More

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Positive Future Changes for the W-8BEN

In last week’s EEI conference, Michael Danilack, Deputy Commissioner at the IRS, announced some positive changes for those having to collect and audit the W-8BEN. The term he used was “clearing the underbrush” which, in essence, means that the IRS is aware that they have been too strict on the validation rules of the W-8BEN in … Read More

Join Us at the Tax Information Reporting Forum

Join Us at the Tax Information Reporting Forum

Information Reporting (1099) is becoming more complicated and the risks relating to non-compliance or inaccurate reporting are high. The recent changes to FATCA, 1099 reporting, 1042 and 1042-S, foreign reporting and cost-basis reporting will affect your business, whether it’s a corporation, a bank, a trust department or a wealth management firm. Join us for a … Read More

Basis Reporting on Form 1099-B

Basis Reporting on Form 1099-B

Interim Guidance on Issues Relating to the Basis of Stock On June 22, 2011, the IRS issued Notice 2011-56.  The Notice provides guidance on some technical issues relating to the basis of stock subject to broker reporting under §6045, pending publication of superseding guidance. Notice 2011-56 contains interim guidance for cost basis reporting on … Read More