Tax & Accounting Blog

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

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

IRS Delays Effective Date for Reporting Basis on Sales of Debt Instruments and Options

IRS Delays Effective Date for Reporting Basis on Sales of Debt Instruments and Options

The IRS announced on May 2, 2012 that it intends to delay the effective date for reporting basis on sales of debt instruments and options. The Energy Improvement and Extension Act of 2008 requires brokers to report the basis on sales of certain securities. The Act applies to stock acquired on or after January 1, 2011, mutual fund shares … Read More

FATCA Conference in New York Highlights Industry Concerns

FATCA Conference in New York Highlights Industry Concerns

At the EEI 24th Annual Forum on International Tax Withholding and Information Reporting in New York on June 5-6, members of the U.S. and foreign financial industries met with key representatives of the IRS to explore the latest on FATCA regulations and implementation. Requirements from the USFI perspective were examined along with those from the FFI … Read More