Tax & Accounting Blog

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 4: Payments to Agents and Intermediaries Recipient Code

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 4: Payments to Agents and Intermediaries Recipient Code

If income is paid to an agent who acts on behalf of the beneficial owner, the beneficial owner is the recipient, not the agent, unless the agent has an agreement with the IRS to take responsibility for NRA withholding and reporting. When income is received by a partnership (Recipient Code 03) or other intermediary that … Read More

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 3: Payments to Third Parties Recipient Code

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 3: Payments to Third Parties Recipient Code

Occasionally, the beneficial owner of the income will request that the income that they are owed be paid to a third party. Although the payer may make the payment to the third party as requested, under the assignment of income doctrine, the income must still be reported in the name of the beneficial owner. Under … Read More

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 2: Payments to Beneficial Owners Recipient Code

Information Reporting on Form 1042-S, A New Challenge for Accounts Payable – Part 2: Payments to Beneficial Owners Recipient Code

In order to report income and taxes properly, payers must generally maintain a record in the name of the income recipient even if payment is made to a different payee. Generally, the recipient named on the Form 1042-S is the individual (Code 01) or entity such as a corporation (Code 02) that is the … Read More

Final Regs Detail Bank Deposit Interest Reporting for Nonresident Aliens

Final Regs Detail Bank Deposit Interest Reporting for Nonresident Aliens

On April 17, 2012, the IRS issued final regs that require information reporting for interest on deposits maintained at U.S. offices of certain financial institutions and paid to nonresident alien individuals resident in countries with which the U.S. has in effect an information exchange agreement (as listed in Rev. Proc. 2012-24, which has been issued … Read More

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 12: What if the Recipient of the Income Requested that Payment Be Made to a Third Party?

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 12: What if the Recipient of the Income Requested that Payment Be Made to a Third Party?

If a third party has been designated to receive the payment for services, whether you still have to withhold and report the income as if made to the individual who provided the services depends on the circumstances. If the arrangement for the services was made with the service provider who, after the services were performed, indicated … Read More

New French Law on the Taxation of Trusts

New French Law on the Taxation of Trusts

On July 29, 2011, France enacted a new law on the taxation of trusts. Under the new law, a trustee must disclose certain information about the trust if the trust has a French settlor, beneficiary or French assets. The trustee must file the disclosure by June 15. The government was to provide further details on how to … Read More