Tax & Accounting Blog

New Versions of Forms W-8 Are Being Planned

New Versions of Forms W-8 Are Being Planned

The IRS is working on changes to the Forms W-8 you use for documentation that a payee is a foreign person, and documentation that a foreign beneficial owner of income is entitled to a reduced rate of tax withholding. The need for new Forms W-8 comes from FATCA, the Foreign Account Tax Compliance Act, most … Read More

Section 6050W Backup Withholding

Section 6050W Backup Withholding

In IRS Notice 2011-42 issued in May 2011, the IRS provided interim guidance for Third Party Settlement Organizations (TPSOs) with regard to backup withholding on payments to its participating payees.  The Notice eases backup withholding obligations for TPSOs, who may rely on this interim guidance until Section 3406 regulations are amended. The Notice provides that the Section … Read More

Three Percent Withholding by Government Payers: House Subcommittee Hears Requests for Repeal

Three Percent Withholding by Government Payers: House Subcommittee Hears Requests for Repeal

On Thursday, May 26, the U.S. House of Representatives Small Business Subcommittee on Contracting and Workforce held a public hearing titled, “Defer No More: The Need to Repeal the 3% Withholding Provision.”  The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) added section 3402(t) to the federal tax code, requiring federal, state and local … Read More