Tax & Accounting Blog

Common W-8BEN Validation Issues

W-8BEN forms are notorious for being difficult to complete. Here are some of the most common errors found on the Form W-8BEN that, if present, may deem that client to be undocumented. Cross reference your documentation against these common errors to ensure documentation compliance. Name Mis-Match The name on line 1 of the W-8BEN needs … Read More

California Clarifies New Nexus Requirements

California Clarifies New Nexus Requirements

Signed by Governor Brown on June 28th L. 2001, AB28 (1st Extra. Sess.) expands California’s use tax registration requirements to large out-of-state retailers that were previously not required to collect use tax on sales through mail order, telephone orders, or the Internet to California customers. This legislation, which was effective upon signature, provides that: A “retailer … Read More

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What Is the Difference between a Qualified Intermediary and Non-Qualified Intermediary?

Although the Qualified Intermediary (QI) regime has been around for quite some time, simple questions surrounding the terminology and structure still remain quite common. For example, what is an Intermediary, a Qualified Intermediary, and a Non-Qualified Intermediary? An Intermediary is any person or organisation holding securities other than for its own account. A Qualified Intermediary is a … Read More

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IRS Resources for Identifying Tax-Exempt Organizations

A tax-exempt organization is an exempt recipient for purposes of tax information reporting, being generally exempt from being reported on a Form 1099.  The organization generally claims this exempt status on the Form W-9 it furnishes to you.  But, if you do not have a W-9, an alternate rule permits a payor to treat an … Read More

California passes Amazon tax law effective July 1st

California passes Amazon tax law effective July 1st

California passed affiliate nexus tax legislation yesterday (AB 153, AB 155 and SB 234).  Effective July 1st, the new rule requires out of state retailers to collect sales tax on purchases made over the internet by their California click-through customers.  California is the largest state to pass such legislation and now joins several other states … Read More