Tax & Accounting Blog

Revised Form 8809 (Application for Extension of Time to File Information Returns)

With the release of a new version of Form 8809 in May 2011,  the field to enter a TCC was removed since it is apparently not needed with extension filings for information returns. Noted with a caution in the on-form 8809 instructions is the statement, “if you are requesting an extension for more than one filer, you must … Read More

Understanding the Difference between Documented and Undocumented

It is important to keep in mind that, as a general rule, all US source payments made to non-US residents are subject to 30% withholding. To apply a reduced (or zero) rate of withholding, the non-US person must provide valid documentation. If your securities account is with a Withholding Agent (a Qualified Intermediary, Non-Qualified Intermediary … Read More

Cost Basis Reporting Developments

Cost Basis Reporting Developments

Over the last few weeks, the IRS issued guidance regarding cost basis reporting requirements that go into effect during 2011 and 2012.  Below is a brief summary of the recent guidance and links to access the details. FAQs – In late April, the IRS issued a series of Frequently Asked Questions (FAQs) explaining rules for cost basis reporting … Read More

Common W-8BEN Validation Issues

W-8BEN forms are notorious for being difficult to complete. Here are some of the most common errors found on the Form W-8BEN that, if present, may deem that client to be undocumented. Cross reference your documentation against these common errors to ensure documentation compliance. Name Mis-Match The name on line 1 of the W-8BEN needs … Read More


What Is the Difference between a Qualified Intermediary and Non-Qualified Intermediary?

Although the Qualified Intermediary (QI) regime has been around for quite some time, simple questions surrounding the terminology and structure still remain quite common. For example, what is an Intermediary, a Qualified Intermediary, and a Non-Qualified Intermediary? An Intermediary is any person or organisation holding securities other than for its own account. A Qualified Intermediary is a … Read More


IRS Resources for Identifying Tax-Exempt Organizations

A tax-exempt organization is an exempt recipient for purposes of tax information reporting, being generally exempt from being reported on a Form 1099.  The organization generally claims this exempt status on the Form W-9 it furnishes to you.  But, if you do not have a W-9, an alternate rule permits a payor to treat an … Read More