Tax & Accounting Blog

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IRS Releases Schema of the List of FATCA-compliant Foreign Financial Institutions

Under FATCA, payers (referred to in tax parlance as “withholding agents”) must withhold tax on certain payments to foreign financial institutions (FFIs) that do not agree to report certain information about their U.S. accounts or accounts of certain foreign entities with substantial U.S. owners. An FFI may agree to report certain information about its … Read More

Form 1042/1042-S-Related Penalties Part 1: Failure to Meet Withholding Obligations.

Form 1042/1042-S-Related Penalties Part 1: Failure to Meet Withholding Obligations.

The IRS enforces compliance with withholding obligations by collecting the underwithheld tax from payers who fail to meet their obligations to withhold and timely pay overwithheld taxes. Assessments are increased for penalties as provided by the Code (and explained in the instructions for the various forms) and for interest computed on the taxes and penalties. … Read More

Ask the Expert: Is it a problem that we have received a Form W-9 with a taxpayer ID number starting with a “9”?

Ask the Expert: Is it a problem that we have received a Form W-9 with a taxpayer ID number starting with a “9”?

Question: Is it a problem that we have received a Form W-9 with a taxpayer ID number starting with a “9”? Answer from Marianne Couch of COKALA Tax Information Reporting Services: Not all TINs beginning with a “9” are a problem. It is true that social security numbers (SSNs) never begin with a “9”. When … Read More

Kentucky’s New System Will Assign a Single ID Number for all State Agency Filings

Kentucky’s New System Will Assign a Single ID Number for all State Agency Filings

Under new legislation passed by the Kentucky Legislature and signed by Governor Steve Beshear on March 21, state government will implement a new business identification system in which a business will be assigned a single identifying number. HB 343 created a new section of Chapter 14, Kentucky Revised Statutes, to require the Kentucky One-Stop … Read More

Thomson Reuters Nonresident Alien Taxation Educational Webcasts Begin April 23

Thomson Reuters Nonresident Alien Taxation Educational Webcasts Begin April 23

Withholding and reporting on payments to foreign employees, students, and scholars are not simple. In addition to the rules and procedures for special withholding and reporting, there are also immigration- and tax treaty-related rules and procedures to follow to ensure compliance. ONESOURCE Nonresident Alien Taxation from Thomson Reuters offers a series of educational webcasts to … Read More

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Highlights of the Form 1042-S Changes

As we alerted readers in an earlier blog post, the IRS has published the highly anticipated draft of an all-new Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, for use in reporting 2014 income payments (reporting you will do in 2015). A copy of the draft form is available to view on the … Read More