Tax & Accounting Blog

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

IRS Will Allow Substitute Forms W-8BEN to Document the Foreign Status of a Payee that Otherwise Would be Reported on the New Form 1099-K

IRS Will Allow Substitute Forms W-8BEN to Document the Foreign Status of a Payee that Otherwise Would be Reported on the New Form 1099-K

The new Form 1099-K will be used for tax information reporting of the gross amounts paid by a settlement entity to its participating payees.  Participating payees that will be reported are recipients that accept payment cards as a means of payment, and recipients that accept payment through third-party settlement organizations.  Payees with a foreign address … Read More

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What Is a MOU in Relation to Electronic Forms W-8 and W-9?

A Memorandum of Understanding (MOU) is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in situations where the parties cannot create … Read More

IRS Agrees to the Use of a Substitute W-8BEN for Internal Revenue Code Section 6050W

IRS Agrees to the Use of a Substitute W-8BEN for Internal Revenue Code Section 6050W

IRS Notice 2011-71 simplifies payee documentation rules for payments from an offshore payer settled to an offshore account and permits substitute forms in lieu of Form W-8BEN. Background of Section 6050W Section 6050W — added to the Code by the Housing Assistance Tax Act of 2008 (Pub. L. No. 110-289) — requires annual information returns … Read More

Banks “Starting to Panic” over FATCA

Banks “Starting to Panic” over FATCA

Risk.net recently released an article stating that banks are now starting to panic over FATCA. According to the European Banking Federation (EBF) and the Institute of International Bankers (IIB), it has been estimated that large banks will have to spend in the region of $250 million each to contact clients and overhaul computer systems … Read More

FATCA Survey – Expected Cost Increases and Challenges

FATCA Survey – Expected Cost Increases and Challenges

Finance and tax executives in the banking industry expect compliance costs to increase significantly as a result of the Foreign Account Tax Compliance Act (FATCA) and say they will face numerous challenges trying to comply with the legislation given its broad scope and expanded reporting and monitoring requirements, according to a survey from KPMG LLP. … Read More