Tax & Accounting Blog

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Switzerland and the United States Sign Bilateral Intergovernmental Agreement for Implementation of FATCA

The U.S. Department of the Treasury has announced the signing of a bilateral agreement with the government of Switzerland to facilitate implementation of the information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act (FATCA). “Today’s announcement marks a significant step forward in our efforts to work collaboratively to combat offshore … Read More

Form 1042-S Information Reporting to Non-U.S. Persons Part 1

Form 1042-S Information Reporting to Non-U.S. Persons Part 1

Income payments made to non-U.S. persons must be reported on a Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, not on a Form 1099. Unlike Form 1099-reportable payments, there is no reporting exception for payments to corporations and no minimum dollar threshold for reporting on Form 1042-S. Reporting on Form 1042-S is … Read More

IRS postpones U.S. new entity reporting of interests in specified foreign financial assets

IRS postpones U.S. new entity reporting of interests in specified foreign financial assets

In Notice 2013-10, the IRS postpones a new requirement for U.S. domestic entities formed or availed of for purposes of holding, directly or indirectly, specified foreign financial assets, report those interests in a statement attached to the entity’s tax return.  This new reporting falls under IRC section 6038D, applicable to individuals who hold any … Read More

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