Tax & Accounting Blog

Proposed Jobs Act Includes Provision Delaying Implementation of Law Requiring 3% Withholding

Proposed Jobs Act Includes Provision Delaying Implementation of Law Requiring 3% Withholding

The President’s Jobs Act Includes a Provision to Delay Implementation of the Law Requiring 3% Withholding by Government Payers for Goods and Services   The American Jobs Act of 2011 proposed by the President includes a wide range of tax cuts, tax credits, state funding assistance, infrastructure and property rehabilitation projects – and tucked away near … Read More

IRS Document Requests Include Copies of Accounting Software Backup Files

IRS Document Requests Include Copies of Accounting Software Backup Files

Did you know that IRS requests for documents for examination are now routinely specifying backup copies of electronic accounting software records instead of paper books and records? The IRS Small Business/Self Employed (SB/SE) division (which is heavily involved in Form 1099 tax reporting and withholding, among other issues) published a set of FAQs last week … Read More

Understanding FATCA (Foreign Account Tax Compliance Act)

Understanding FATCA (Foreign Account Tax Compliance Act)

The Foreign Account Tax Compliance Act (FATCA) imposes an additional 30% withholding tax on certain U.S. source payments made to “foreign financial institutions” (“FFIs”) and “non-financial foreign entities” (“NFFEs”) that refuse to disclose information to the IRS about U.S. investors, even if those investors hold only non-U.S. assets. Due diligence requirements for identifying new and … Read More

Want Proof of Mailing to the IRS on Time?

Want Proof of Mailing to the IRS on Time?

Don’t Rely on USPS First Class, Priority Mail or Delivery Confirmation Service Did you know that the only ways to establish prima facie evidence of delivery of documents that have a filing deadline prescribed by the Internal Revenue laws are the delivery methods that are specifically authorized in the tax regulations for timely mailing as … Read More

IRS Will Allow Substitute Forms W-8BEN to Document the Foreign Status of a Payee that Otherwise Would be Reported on the New Form 1099-K

IRS Will Allow Substitute Forms W-8BEN to Document the Foreign Status of a Payee that Otherwise Would be Reported on the New Form 1099-K

The new Form 1099-K will be used for tax information reporting of the gross amounts paid by a settlement entity to its participating payees.  Participating payees that will be reported are recipients that accept payment cards as a means of payment, and recipients that accept payment through third-party settlement organizations.  Payees with a foreign address … Read More

6050W Guidance – U.S. Payors Making Payments Outside the U.S.

6050W Guidance – U.S. Payors Making Payments Outside the U.S.

Issued by the IRS on August 19, Notice 2011-71 provides interim guidance under section 6050W of the Internal Revenue Code.  In summary, the guidance provides relief from some 6050W reporting and documentation requirements for payment settlement entities who are U.S. payors making payments to offshore accounts.   The Notice is the result of comments … Read More