Tax & Accounting Blog

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Residency for Treaty Purposes: Corporations

The United States has income tax treaties with over 60 countries for the purpose of avoiding double taxation. The Residency Article of an applicable income tax treaty sets forth rules for determining which entities and individuals (collectively, persons) are residents of a country for purposes of the treaty. As the IRS expands its compliance enforcement with … Read More

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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

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

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New W-9 (Rev. Dec 2011) Released

Over the past nine months, the IRS received multiple complaints about the recently released W-9 (Rev. Jan 2011). Criticism centered on the tax classification area, where the word, required, was added. This led filers to believe that the tax classification section was mandatory, where, in fact, it is not. Due to the high number of complaints, the IRS released a … Read More

QIs Have No Choice with Regard to FATCA

QIs Have No Choice with Regard to FATCA

In last week’s EEI conference, it was announced that Qualified Intermediaries (QIs) will have no choice but to register to become a Participating Foreign Financial Institution (PFFI). This announcement came as quite a shock to some of the QIs that attended the Washington event, who assumed that they have the choice of becoming a non-participating … Read More

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Positive Future Changes for the W-8BEN

In last week’s EEI conference, Michael Danilack, Deputy Commissioner at the IRS, announced some positive changes for those having to collect and audit the W-8BEN. The term he used was “clearing the underbrush” which, in essence, means that the IRS is aware that they have been too strict on the validation rules of the W-8BEN in … Read More