Tax & Accounting Blog

Self-Insurance Arrangements – Relief from IRC Section 6050W Requirements

Self-Insurance Arrangements – Relief from IRC Section 6050W Requirements

Notice 2011-78 provides relief to insurance companies administering certain self-insurance arrangements from information reporting obligations under Section 6050W of the Internal Revenue Code. Under the self-insurance circumstances identified in Notice 2011-78, an insurance company will not be treated as a third-party settlement organization with Form 1099-K reporting responsibility. Insurance companies may rely on the Notice until the Regulations … Read More

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IRC Section 6050W – Recent Developments

Relief Provisions and FAQs on IRC Section 6050W Payments The IRS is providing special transitional relief to banks and other payment settlement entities required to begin reporting payment card and third-party network transactions to the IRS on new Form 1099-K. By law, reporting is scheduled to begin in early 2012 for payment card and third-party … Read More

QIs Have No Choice with Regard to FATCA

QIs Have No Choice with Regard to FATCA

In last week’s EEI conference, it was announced that Qualified Intermediaries (QIs) will have no choice but to register to become a Participating Foreign Financial Institution (PFFI). This announcement came as quite a shock to some of the QIs that attended the Washington event, who assumed that they have the choice of becoming a non-participating … Read More

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Positive Future Changes for the W-8BEN

In last week’s EEI conference, Michael Danilack, Deputy Commissioner at the IRS, announced some positive changes for those having to collect and audit the W-8BEN. The term he used was “clearing the underbrush” which, in essence, means that the IRS is aware that they have been too strict on the validation rules of the W-8BEN in … Read More

Form 1099 Changes to Note as You Prepare for Year-End Statements and Filing

Form 1099 Changes to Note as You Prepare for Year-End Statements and Filing

Notes that may help you plan your Form 1099 reporting season: Your company’s logo, slogans or advertising are not permitted on the Form 1099 statements you send out to report amounts paid in 2011 and later years. This is the new rule, though we’re still waiting for the IRS to issue specific clarifications or explanations of … Read More

IRS Clarifies How Electronic Records Must Be Furnished for Examination

IRS Clarifies How Electronic Records Must Be Furnished for Examination

The IRS Small Business/Self Employed (SB/SE) division, which is heavily involved in Form 1099 tax reporting and withholding among other issues, recently released some details of how electronic accounting records (instead of books and records on paper) are to be furnished in response to an IRS Information Document Request (IDR).  The IRS will want your backup … Read More