Tax & Accounting Blog

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

Draft of new Form W-8ECI released by the IRS

Draft of new Form W-8ECI released by the IRS

The fourth in the new series of Forms W-8 has been released for public comment.  The W-8IMY has been revised so that the form will serve as documentation for compliance with both Chapter 4 (FATCA) of the Internal Revenue Code and Chapter 3 of the Code (the Section 1441 nonresident alien withholding-at-source requirements, some amendments … Read More

IRS discontinues tiered audit issue rankings

IRS discontinues tiered audit issue rankings

Since 2006, the IRS has used Tiered Issue rankings to set priorities for tax examinations and enforcement in tax areas that it believed posed the highest challenges in compliance or the abuse of tax law.  Now, however, the tiered issue process is being replaced with what the IRS Large Business and International division is calling … Read More

Federal per diem expense allowance updates effective October 1, 2012

Federal per diem expense allowance updates effective October 1, 2012

The federal per diem expense allowance rates for 2013, effective beginning October 1, have been issued in GSA Bulletin 13-01.  The standard lodging per diem rate of $77 will continue to remain in effect for the period of federal fiscal year 2013, October 1, 2012, through September 30, 2013.  The meals and incidental expense (M&I) … Read More