Tax & Accounting Blog

onesource

When a Foreign Vendor Needs a U.S. Taxpayer Identification Number

The IRS is in the process of enforcing compliance of long-standing rules requiring U.S. tax withholding on U.S.-source income payments to nonresident aliens and foreign entities (collectively, foreign persons). As a result, foreign vendors are being asked by their clients to provide them with a U.S. withholding certificate to document their foreign status for U.S. … Read More

Thomson Reuters Poll: 50% Tax Professionals Have Staffing Worries

Thomson Reuters Poll: 50% Tax Professionals Have Staffing Worries

During his interactive opening session at this year’s ONESOURCE User Conference, Joe Harpaz, senior vice president and general manager of Corporate Income Tax, incorporated real time vote-by-text polling that revealed that from the 1500 tax and accounting professionals in attendance, half felt limited staffing was their biggest challenge. “When budgets and personnel are hard to come by, turning to … Read More

Oregon Requires Form 1099-MISC and 1099-R Reporting this Year

Oregon Requires Form 1099-MISC and 1099-R Reporting this Year

This has been a very busy year in Form 1099 reporting, but when you are planning your 1099 preparation timeline for payments made in 2011, remember that tax laws in Oregon have changed. After many years of not requiring 1099 reporting, Oregon now has rules for reporting Forms 1099-MISC, 1099-R, 1099-G and W-2G directly to the … Read More

Understanding FATCA  – Part 2 of 3

Understanding FATCA – Part 2 of 3

The Foreign Account Tax Compliance Act (FATCA) is intended to increase transparency for the IRS with respect to US persons that may be investing and earning US income through non-US institutions.  It is clear that the new FATCA reporting and withholding regime will impact not only processes and procedures designed to mitigate risk and ensure … Read More

Michigan Supreme Court Strikes Down One Provision of the State’s New Tax Law Affecting Retirement Payments

Michigan Supreme Court Strikes Down One Provision of the State’s New Tax Law Affecting Retirement Payments

In an advisory opinion issued November 18 on the constitutionality of several provisions of the new Michigan tax law that concerns state income tax and withholding on retirement benefits, the state Supreme Court ruled that basing exemptions and deductions on “total household resources” violates the Michigan constitutional prohibition against a graduated income tax. That strikes down two subsections … Read More

Repealed! President Signs Tax Law Repealing the Requirement for Federal, State and Local Governments to Withhold 3% of Many Payments to Vendors

Repealed! President Signs Tax Law Repealing the Requirement for Federal, State and Local Governments to Withhold 3% of Many Payments to Vendors

Thursday morning, November 21, the President signed H.R. 674, which enacts repeal of Section 3402(t) of the Internal Revenue Code – that is, the requirement for federal, state and local governments and their agencies and instrumentalities to withhold 3% federal income tax from many payments for services and payments for property (tangible property such as goods, … Read More