Tax & Accounting Blog

Will Congress Repeal the 3% Tax Withholding Law Affecting Government Payers for Goods and Services?

Will Congress Repeal the 3% Tax Withholding Law Affecting Government Payers for Goods and Services?

The U.S. House of Representatives Committee on Ways and Means voted on October 13 to approve H.R. 647, a legislative bill for repeal of Section 3402(t) of the Internal Revenue Code, the law which requires government entities to withhold 3% federal income tax from certain payments for services and for property.  In the U.S. Senate, … 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

Understanding FATCA – Part 1 of a 3 Part Series

Understanding FATCA – Part 1 of a 3 Part Series

The Foreign Account Tax Compliance Act (FATCA) was enacted as part of the Hiring Incentives to Restore Employment (HIRE) Act on March 18, 2010. FATCA creates a new information reporting and withholding regime for payments made to certain Foreign Financial Institutions (FFIs) and other foreign entities. FATCA is intended to increase transparency for the IRS with … Read More

New Form for Miscellaneous Determination Requests

New Form for Miscellaneous Determination Requests

The IRS has released a new form that tax-exempt organizations will use to request certain determinations about their tax-exempt status. In addition to foundation status issues, organizations will use Form 8940, Request for Miscellaneous Determination, to obtain advance approval of certain activities and exemption from Form 990 filing requirements.  Organizations applying for recognition of exemption … Read More

IRS Updates List of Tax Treaties that Are Satisfactory for Purposes of the Qualified Dividend Rule

IRS Updates List of Tax Treaties that Are Satisfactory for Purposes of the Qualified Dividend Rule

When a domestic corporation or a qualified foreign corporation pays a dividend to an individual shareholder, the dividend is taxed at the reduced rates applicable to long term capital gains if the shareholder meets certain holding period requirements. Subject to certain exceptions, a qualified foreign corporation includes certain foreign corporations that are eligible for benefits of … Read More

Treasury Issues Final Rule on FBAR

Treasury Issues Final Rule on FBAR

On February 24, 2011, the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Treasury Department, issued a final rule on Foreign Bank Account Reports (FBARs). The rule addresses the scope of persons that are required to file FBARs.  The rule specifies the types of accounts that are reportable and provides relief for … Read More