Tax & Accounting Blog

IRS Adds a Box to Report Merchant Control Code (MCC) Numbers on Form 1099-K

IRS Adds a Box to Report Merchant Control Code (MCC) Numbers on Form 1099-K

The IRS has published a new version of the 2011 Form 1099-K, Merchant Card and Third Party Network Payments. What’s New? The IRS has designated Box 3 of the 1099-K for reporting the Merchant Control Code (MCC) number assigned to the recipient.  The MCC is a code number, which a payment card association assigns to Merchant/Payees that accept its … Read More

Cost Basis Transfer Statements: Check These Required Elements for Inherited Securities

Cost Basis Transfer Statements: Check These Required Elements for Inherited Securities

The Final Regulations for basis reporting (TD 9504) established some very specific requirements for transfer statements in the case of inherited securities.  An initial transfer statement is required upon inheritance to indicate whether the inherited securities are covered securities under the cost basis rules. Then, all subsequent transfers of the inherited securities are required to … Read More

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