Tax & Accounting Blog

Paula Singer Releases Four Whitepapers on Nonresident Alien Taxation

Paula Singer Releases Four Whitepapers on Nonresident Alien Taxation

Nonresident alien taxation, which encompasses the special payroll withholding and reporting rules for nonresident alien employees and the withholding of tax on U.S.-source income paid to nonresident aliens and foreign entities (traditionally referred to as NRA withholding) has become a critical issue for organizations that pay foreign individuals and entities. Upcoming implementation of FATCA rules and … Read More

Who Is a U.S. Citizen and Why It Matters: Part 2 – Tax-Related Rules for Citizens

Who Is a U.S. Citizen and Why It Matters: Part 2 – Tax-Related Rules for Citizens

In order to apply the proper tax-related rules, payment professionals, tax advisors and return preparers need to know which employees, payees, or clients are U.S. citizens, and which are not and may, therefore, be subject to a different set of tax rules and procedures. Taxation of Worldwide Income. U.S. citizens are subject to U.S. income tax … Read More

IRS Revenue Ruling highlights expense payments which cannot be tax-free

IRS Revenue Ruling highlights expense payments which cannot be tax-free

Revenue Ruling 2012-25 from the Internal Revenue Service describes three plans which companies set up to provide expense reimbursements to employees, with the payments treated as outside of the wage stream and therefore paid without any tax deductions and not reported on the employees’ W-2 forms.  But under IRS scrutiny, all three plans failed the … Read More

Australia studying reciprocal tax agreement to satisfy U.S. FATCA obligations of its financial institutions

Australia studying reciprocal tax agreement to satisfy U.S. FATCA obligations of its financial institutions

The Australian government is exploring the feasibility of an agreement with the United States based on the model reciprocal agreement issued in July by the U.S. Department of Treasury for implementation of FATCA (the Foreign Account Tax Compliance Act).  Under the agreement, Australian financial institutions would be able to implement the due diligence and reporting … Read More

Who Is a U.S. Citizen and Why It Matters – Part 1

Who Is a U.S. Citizen and Why It Matters – Part 1

When it comes to U.S. income tax, not all individual income recipients are treated alike. The Internal Revenue Code and IRS regulations have special rules for determining when foreign national individuals are resident aliens and taxed like U.S. citizens and rules for taxing the income of foreign nationals when they are nonresident aliens. As a … Read More

IRS terminates letter forwarding service for plan administrators and plan sponsors

IRS terminates letter forwarding service for plan administrators and plan sponsors

IRS Revenue Procedure 2012-35, effective August 31, 2012, has modified Revenue Procedure 94-22 by removing the service of forwarding letters on behalf of an individual, company or organization that controls assets which may be due a taxpayer.  Previously the IRS would follow the 94-22 procedure to forward letters – typically from plan administrators, sponsors of … Read More