Tax & Accounting Blog

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

New rules for Roth account conversions in retirement plans

New rules for Roth account conversions in retirement plans

The new American Taxpayer Relief Act, signed by the President on January 2, includes a change for Roth individual retirement accounts in employer plans.  The Act provides that, effective for transfers made after December 31, 2012, in taxable years ending after December 31, 2012, a broader range of amounts in employer-sponsored tax-deferred retirement plans may … Read More

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North Carolina Requires New NC-4P Withholding Documentation for Pension and IRA Distributions

Due to changes in North Carolina income tax law, recipients of pension or annuity payments must complete and provide to their payer a new Withholding Certificate for Pension or Annuity Payments, Form NC-4P, in order to withhold the correct amount of North Carolina income tax for pension payment periods beginning on or after January 1, … Read More

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 8 – Exempt Individuals

Foreign Nationals: Resident Alien or Nonresident Alien and Why It Matters: Part 8 – Exempt Individuals

Exempt Individuals are exempt from counting U.S. days for purposes of determining substantial presence in the U.S., nothing more. They are not exempt from tax because of their status as Exempt Individuals, although such Exempt Individuals are frequently exempt from income tax under a Code or tax treaty provision. To avoid this confusion, the IRS … Read More