Tax & Accounting Blog

IRS Releases Drafts of New Forms W-8BEN

IRS Releases Drafts of New Forms W-8BEN

On May 31, 2012, the IRS released drafts of new Forms W-8BEN. A foreign person uses Form W-8 to certify their withholding status and eligibility for treaty benefits. The IRS updated the form to reflect changes required by the Foreign Account Tax Compliance Act (FATCA). There are two separate draft forms. Form W-8BEN is for foreign individuals. Form … Read More

California State Board of Equalization Explains Fuel Tax Changes

California State Board of Equalization Explains Fuel Tax Changes

                                California has posted a special notice to explain changes in taxes applicable to retail sales and purchases of diesel fuel. Effective 1 July 2012, the state sales and use tax rate and excise tax rate on retail sales and purchases of diesel fuel will change. The excise tax will decrease to 10 cents  per gallon and the … Read More

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NRA Withholding and Reporting on Payments to Foreign Nationals – Part 5: What if I Have No Information When I Have to Make a Payment?

The Section 1441 regulations provide presumptions that you must follow in order to avoid liability for underwithholding when you make payments to recipients for whom you have no documentation. (See the table in IRS Publication 515  for references to specific withholding regulations for different types of payments.) An individual recipient on whom you have no … Read More

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 4: Do the Same Tax Residency Rules Apply for State Withholding Tax Purposes?

NRA Withholding and Reporting on Payments to Foreign Nationals – Part 4: Do the Same Tax Residency Rules Apply for State Withholding Tax Purposes?

No, unless the state has specific rules defining residency that are tied to a recipient’s federal tax residency status. Lacking such special rules, residency for state tax purposes is determined for foreign nationals under the same rules that apply to U.S. citizens. … Read More

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Per Diem Expense Rates for Travel Reimbursement Now Published Only Online, IRS Publication 1542 Eliminated

The official source for the federal government per diem rates allowable for expense reimbursement in business travel away from home within the continental United States (CONUS) is the online information on the U.S. General Services Administration webpage  http://www.gsa.gov/portal/category/21287. On this webpage, you can also find links to the Department of Defense per diem rates … Read More