Tax & Accounting Blog

IRS Large Business & International Division Issues New Rules Governing Information Document Requests in Examinations

IRS Large Business & International Division Issues New Rules Governing Information Document Requests in Examinations

The IRS Large Business and International Division has announced that all Information Document Requests (lDRs) issued after June 30, 2013, must comply with certain new principles. If the new rules are not followed, IDRs will not have effect. Moreover, any existing Memorandum of Understanding relating to IDR management that does not comply with the principles … Read More

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Alert: IRS Announces Postponement from January 1 to July 1 for Many Items of FATCA Compliance

Notice 2013-43, an advance copy of which was released today, revises the timeline set by the FATCA final regulations for certain elements of due diligence, tax withholding, and reporting under Chapter 4 of the Internal Revenue Code, the Foreign Account Tax Compliance Act known as FATCA. Notice 2013-43 will be officially published on July … Read More

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Japan signs FATCA Implementation Agreement

The U.S. Department of Treasury has announced a statement of mutual cooperation and understanding for implementation of the U.S. Foreign Account Tax Compliance Act (FATCA). The statements will serve as a FATCA intergovernmental agreement (IGA) following the Treasury Department’s Model 2 structure for direct reporting by Japanese financial institutions to the U.S. Internal Revenue Service. … Read More

FinCEN Electronic Filing of Suspicious Activity Reports and Currency Transaction Reports

FinCEN Electronic Filing of Suspicious Activity Reports and Currency Transaction Reports

The Financial Crimes Enforcement Network (FinCEN) has been alerting institutions that they are now required to use the new FinCEN electronic reports on-line at the BSA E-Filing System. Financial institutions that continue to file Suspicious Activity Reports (SARs) or Currency Transaction Reports (CTRs) on paper will fail to meet current Bank Secrecy Act reporting requirements … Read More

Why Nature of Income Paid to Foreign Vendors Matters Part 2 – Source of Income Rules

Why Nature of Income Paid to Foreign Vendors Matters Part 2 – Source of Income Rules

U.S. sourcing rules vary with the type of income being paid, as do U.S. rules for a lower rate of or exemption from withholding. In addition, a payer must correctly record the income code on Form 1042-S so that the foreign vendor may submit a correct U.S. tax return, assuming one is required. Therefore, … Read More

Ask the Expert: California Withholding on 1099-MISC Reportable Payment

Ask the Expert: California Withholding on 1099-MISC Reportable Payment

Question: A company located in California says, “Some questions are still coming up about compliance with the California 7% income tax withholding requirement on payments we make to out-of-state artists for services here in California. If they have a California resident agent and our check is payable to the agent, does that eliminate the withholding … Read More