Tax & Accounting Blog

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

IRS Issues New Guidance on Trust and Estate Administration Costs Subject to the 2% Floor

IRS Issues New Guidance on Trust and Estate Administration Costs Subject to the 2% Floor

In light of the Supreme Court’s decision in Knight v. Com., the IRS has withdrawn previously issued proposed regs and, consistent with that decision, provided new guidance on which costs incurred by estates and non-grantor trusts are subject to the Code Sec. 67(a)’s 2% floor for miscellaneous itemized deductions. In accord with the Knight decision, … Read More

California Tax Board Offers a Step-by-Step Chart for Nonresident and Backup Withholding

California Tax Board Offers a Step-by-Step Chart for Nonresident and Backup Withholding

If you’re making vendor payments for a California business location, you need to watch out for payments that are subject to the State of California’s 7% withholding requirements. The California Franchise Tax Board has just issued a new chart, which they hope will make the process easier to understand. The new two-page chart is posted on the … Read More