Tax & Accounting Blog

Oregon Requires Form 1099-MISC and 1099-R Reporting this Year

Oregon Requires Form 1099-MISC and 1099-R Reporting this Year

This has been a very busy year in Form 1099 reporting, but when you are planning your 1099 preparation timeline for payments made in 2011, remember that tax laws in Oregon have changed. After many years of not requiring 1099 reporting, Oregon now has rules for reporting Forms 1099-MISC, 1099-R, 1099-G and W-2G directly to the … Read More

Understanding FATCA  – Part 2 of 3

Understanding FATCA – Part 2 of 3

The Foreign Account Tax Compliance Act (FATCA) is intended to increase transparency for the IRS with respect to US persons that may be investing and earning US income through non-US institutions.  It is clear that the new FATCA reporting and withholding regime will impact not only processes and procedures designed to mitigate risk and ensure … Read More

Michigan Issues New Pension Withholding Guide and Form MI W-4P

Michigan Issues New Pension Withholding Guide and Form MI W-4P

The Michigan Department of Treasury has issued a new Form MI W-4P (Withholding Certificate for Michigan Pension or Annuity Payments) for 2012 for recipients of retirement payments to fill out and furnish to the payer to use in withholding Michigan personal income tax on distributions. Tax withholding on retirement payments is new for Michigan for 2012 … Read More

Michigan Supreme Court Strikes Down One Provision of the State’s New Tax Law Affecting Retirement Payments

Michigan Supreme Court Strikes Down One Provision of the State’s New Tax Law Affecting Retirement Payments

In an advisory opinion issued November 18 on the constitutionality of several provisions of the new Michigan tax law that concerns state income tax and withholding on retirement benefits, the state Supreme Court ruled that basing exemptions and deductions on “total household resources” violates the Michigan constitutional prohibition against a graduated income tax. That strikes down two subsections … Read More

Repealed! President Signs Tax Law Repealing the Requirement for Federal, State and Local Governments to Withhold 3% of Many Payments to Vendors

Repealed! President Signs Tax Law Repealing the Requirement for Federal, State and Local Governments to Withhold 3% of Many Payments to Vendors

Thursday morning, November 21, the President signed H.R. 674, which enacts repeal of Section 3402(t) of the Internal Revenue Code – that is, the requirement for federal, state and local governments and their agencies and instrumentalities to withhold 3% federal income tax from many payments for services and payments for property (tangible property such as goods, … Read More

Government Entities: One Step Closer to Repeal of the Law that Requires 3% Withholding on Vendor Payments

Government Entities: One Step Closer to Repeal of the Law that Requires 3% Withholding on Vendor Payments

The United States Senate joined the House of Representatives in passing H.R. 674 to repeal the 3% withholding requirement that is currently scheduled to begin in 2013 for vendor payments made by federal, state and local governments and their agencies and instrumentalities.  The Senate action puts us one step closer to repeal of the 3% withholding … Read More