Tax & Accounting Blog

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 12: What if the Recipient of the Income Requested that Payment Be Made to a Third Party?

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 12: What if the Recipient of the Income Requested that Payment Be Made to a Third Party?

If a third party has been designated to receive the payment for services, whether you still have to withhold and report the income as if made to the individual who provided the services depends on the circumstances. If the arrangement for the services was made with the service provider who, after the services were performed, indicated … Read More

New French Law on the Taxation of Trusts

New French Law on the Taxation of Trusts

On July 29, 2011, France enacted a new law on the taxation of trusts. Under the new law, a trustee must disclose certain information about the trust if the trust has a French settlor, beneficiary or French assets. The trustee must file the disclosure by June 15. The government was to provide further details on how to … Read More

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 11: What if the Payment Includes Both U.S. Source and Foreign Source Income?

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 11: What if the Payment Includes Both U.S. Source and Foreign Source Income?

If you know that the payment includes both U.S. source and foreign source income and you do not have a reasonable allocation of the U.S. source amount, you must treat the entire amount as U.S. source income. The recipient of the income can submit a U.S. tax return with an allocation of the income between … Read More

Medicare Surtax on Net Investment Income Goes into Effect on January 1, 2013

Medicare Surtax on Net Investment Income Goes into Effect on January 1, 2013

Under the 2010 Health Care reform legislation, a Medicare tax will, for the first time, be applied to investment income beginning in 2013. A new 3.8% tax will be imposed on net investment income of single taxpayers with AGI above $200,000 and joint filers over $250,000. Net investment income is interest, dividends, royalties, rents, gross … Read More