Tax & Accounting Blog

Third Circuit Provides Guidance on New Jersey Gift Card and Travelers Checks Unclaimed Property Revisions

Third Circuit Provides Guidance on New Jersey Gift Card and Travelers Checks Unclaimed Property Revisions

Litigation was brought against New Jersey to challenge various aspects of the New Jersey legislation – 2010 N.J. Laws, Chapter 25 – that attempts to retroactively require reporting of gift cards/stored value cards (“SVCs”) to impose a “place of purchase presumption” for reporting of SVCs, and to significantly reduce the dormancy period for escheatment of … Read More

Who’s a Form 1099-K Filer and Who’s Not?

Who’s a Form 1099-K Filer and Who’s Not?

This IRS Letter Ruling Adds to Our Understanding IRS Letter Ruling 201201001 illustrates that the structure of a business that manages prescription drug benefit plans puts it outside the purview of I.R.C. Section 6050W information reporting (Form 1099-K). The conclusion was based on the fact that the business serves plan sponsors on the one hand and makes … Read More

Penalties for Failure to Comply with NRA Withholding and 1042-S Information Reporting – Part 1

Penalties for Failure to Comply with NRA Withholding and 1042-S Information Reporting – Part 1

In August of 2010, the IRS announced “executing our international strategy is a top priority, and our work continues to intensify in this area.” Included in this strategy is a requirement for examiners to review withholding and reporting on payments to foreign individuals and entities during corporate audits. Other organizations should anticipate that the IRS will apply … Read More