Tax & Accounting Blog

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 6: What Would Give Me Reason to Know That the Recipient Is a Nonresident Alien?

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 6: What Would Give Me Reason to Know That the Recipient Is a Nonresident Alien?

The IRS has addressed the facts that would cause a payer who has no actual information about a recipient to have a reason to know that the recipient might be a nonresident alien: The individual is not a U.S. citizen or immigrant (popularly called a green-card holder). A nonimmigrant is a U.S. person only if substantially … Read More

Nevada Tax Commission Applies Sales Tax Complimentary Meals

Nevada Tax Commission Applies Sales Tax Complimentary Meals

Monday, 25 June 2012, The Nevada Tax Commission voted 5-2 to require sales taxes to be applied to complimentary meals for hotels and restaurants’ guests and employees.  This ruling will be applied retroactively, applying to each complimentary meal since 15 February 2012. These businesses are obligated to pay their first bill by 31 July 2012 … Read More

IRS Releases Drafts of New Forms W-8BEN

IRS Releases Drafts of New Forms W-8BEN

On May 31, 2012, the IRS released drafts of new Forms W-8BEN. A foreign person uses Form W-8 to certify their withholding status and eligibility for treaty benefits. The IRS updated the form to reflect changes required by the Foreign Account Tax Compliance Act (FATCA). There are two separate draft forms. Form W-8BEN is for foreign individuals. Form … Read More

California State Board of Equalization Explains Fuel Tax Changes

California State Board of Equalization Explains Fuel Tax Changes

                                California has posted a special notice to explain changes in taxes applicable to retail sales and purchases of diesel fuel. Effective 1 July 2012, the state sales and use tax rate and excise tax rate on retail sales and purchases of diesel fuel will change. The excise tax will decrease to 10 cents  per gallon and the … Read More

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NRA Withholding and Reporting on Payments to Foreign Nationals – Part 5: What if I Have No Information When I Have to Make a Payment?

The Section 1441 regulations provide presumptions that you must follow in order to avoid liability for underwithholding when you make payments to recipients for whom you have no documentation. (See the table in IRS Publication 515  for references to specific withholding regulations for different types of payments.) An individual recipient on whom you have no … Read More