Tax & Accounting Blog

Changes coming in tax treaty between the United States and Japan

Changes coming in tax treaty between the United States and Japan

A new protocol to the income tax treaty between the United States and Japan has been signed by representatives of both countries, but its provisions will not enter into force until both countries have completed ratification of the protocol.  It amends the tax treaty, which has been in effect since 2003, to update several provisions … Read More

Nebraska Governor calls for elimination of individual income tax, including no taxation of retirement distributions

Nebraska Governor calls for elimination of individual income tax, including no taxation of retirement distributions

Nebraska Governor Dave Heineman, in his State of the State speech, proposed the elimination of the Nebraska individual income tax, including no taxation of any retirement income. His tax proposals also include elimination of Nebraska corporate income tax. As an offset, he proposes to end numerous sales tax exemptions. The key points made by the … Read More

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FATCA Final Regulations issued, provide rules for new tax documentation and withholding regime

The Final Regulations for Chapter 4 of the Internal Revenue Code, sections 1471 through 1474 known as the Foreign Account Tax Compliance Act or “FATCA,” have been issued. The official date of publication in the Federal Register is scheduled to be January 28, 2013. The IRS has made the complete text, TD 9610, available at … Read More

TIN truncation on Form 1099 payee statements will continue under new proposed regulations

TIN truncation on Form 1099 payee statements will continue under new proposed regulations

The IRS has published proposed new tax regulations for truncating taxpayer identification numbers on the recipient statements for Forms 1099 – including the expansion of TIN truncation to include not only paper 1099 statements, but also 1099 statements furnished electronically.  However, the proposed regulations limit TIN truncation to social security numbers (SSNs), individual taxpayer identification … Read More

IRS Adds Form 1099-B to the Combined Federal/State Reporting Program

IRS Adds Form 1099-B to the Combined Federal/State Reporting Program

The IRS has added Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, to the Combined Federal/State Reporting Program (CFSFP) beginning with the filing of Forms 1099-B for tax year 2012. As detailed in IRS Announcement 2013-3, this change is an important revision to the IRS electronic file specifications which originally were issued … Read More