Tax & Accounting Blog

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 7: What if the Service Provider Wasn’t Authorized under the Immigration Rules to Provide the Services?

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 7: What if the Service Provider Wasn’t Authorized under the Immigration Rules to Provide the Services?

You must apply the proper withholding and reporting rules based on tax residency status to payments to foreign national recipients regardless of whether the recipient was authorized to provide the services or not. It is the provision of services by an unauthorized individual that is a violation of the immigration laws. However, your organization’s payment to the … 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, … Read More

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