Tax & Accounting Blog

IRS Answers Questions about I.R.C. Section 3402(t)

IRS Answers Questions about I.R.C. Section 3402(t)

IRS Answers Some Questions about Rules for Government Payers to Withhold 3% from Many Payments There’s a new FAQ page on the IRS website with information that federal, state and local government Accounts Payable, Tax, and Procurement offices will want to know about their future obligation to withhold 3% from a wide range of payments.  … Read More

Do You Understand the Latest Changes in Regulations?

Do You Understand the Latest Changes in Regulations?

Information reporting (1099) is becoming more complicated and the risks relating to non-compliance or inaccurate reporting are very high.  The recent changes to FATCA, 1099 reporting, 1042 and 1042-S, foreign reporting and cost-basis reporting will affect your business, whether it’s a corporation, bank, trust department or wealth management firm. The Small Business Jobs Act of 2010 enacted … Read More

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If You Use Per Diem Amounts for Travel Expense Payments, Note that Some Rules Are Changing

The IRS has announced the intention to discontinue authorizing the high-low method for substantiating expenses incurred for lodging, meals and incidentals while traveling away from home.  Announcement 2011-42 indicates that the IRS will no longer calculate and issue authorized per diem amounts for certain high-cost localities, to be used as the high-low alternative under the … Read More

Social Security Number Randomization in Effect

Social Security Number Randomization in Effect

Does Your Organization Need to Update Screening Programs? The Social Security Administration (SSA) has changed the way SSNs are issued.  A new randomization of the assignment of SSNs went into effect on June 25, 2011.  SSNs are now being assigned in a geographically random and non-sequential order.  Thus, for SSNs assigned after June 25 of this … Read More

The TAX GAP Act: Changes in 1099 Reporting May Be Considered by Congress

The TAX GAP Act: Changes in 1099 Reporting May Be Considered by Congress

There’s always something cooking in Congress that has the potential of affecting Form 1099 reporting, and lately we are keeping an eye on the TAX GAP Act (S. 1289).  Section 401 of the Act would require payers to backup withhold federal tax on several types of reportable payments if the IRS has not provided verification … Read More