Tax & Accounting Blog

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

Recent Developments in FATCA Intergovernmental Agreements and Implementation

Recent Developments in FATCA Intergovernmental Agreements and Implementation

The United Kingdom released Guidance Notes and draft regulations covering internal UK administration of rules for identification and certification of financial institutions, classification and reporting of accounts, and reporting of certain accountholder information under the intergovernmental agreement (IGA) with the United States for implementation of the U.S. Foreign Account Tax Compliance Act. Under the … Read More

Why Nature of Income Matters on Payments to Foreign Vendors

Why Nature of Income Matters on Payments to Foreign Vendors

U.S. organizations making payments to vendors must determine whether the vendor is a U.S. person or a non-U.S. person because only payments to U.S. persons (actual or presumed) are covered by Form 1099 rules and procedures. The term U.S. persons includes U.S. citizens, resident aliens [based on IRC §7701(b) tax residency rules], and domestic entities. … Read More

Connecticut Enacts State Tax Amnesty, Will Waive Penalties and Reduce Interest

Connecticut Enacts State Tax Amnesty, Will Waive Penalties and Reduce Interest

The Connecticut legislature has approved a tax amnesty program as part of the general state budget bill H.B. 6704. The amnesty period will run from September 16 to November 15, 2013, and is open to individuals, businesses, or other taxpayers that owe Connecticut state taxes (other than motor carrier road taxes) for any taxable period … Read More

Minnesota Income Tax Rate Change Retroactive to January 1

Minnesota Income Tax Rate Change Retroactive to January 1

Minnesota Governor Dayton signed the new omnibus budget bill HF 677 on May 23, enacting a compromise on income tax rates worked out in conference between the state House and Senate which had passed different versions of the bill. The newly approved income tax rate structure is retroactive to January 1, 2013, and changes affect … Read More

Illinois Electronic Withholding Deposit and IL-941 Filing will Move from WebFile system to MyTax Illinois System on July 1

Illinois Electronic Withholding Deposit and IL-941 Filing will Move from WebFile system to MyTax Illinois System on July 1

On July 1, 2013, the Illinois Department of Revenue will implement the third phase of the MyTax Illinois online tax account management program. This third phase of MyTax Illinois will provide return filing, payment, and account management for withholding income tax (Form IL-941 and IL-941-X). It will also provide account management and payment options for … Read More