Tax & Accounting Blog

Why Nature of Income Paid to Foreign Vendors Matters Part 4 – Bundled Income

Why Nature of Income Paid to Foreign Vendors Matters Part 4 – Bundled Income

When an income payment is one amount that covers more than one type of income, the payment must be reasonably allocated among all types of income covered by the payment. For example, a single payment to a foreign vendor for the purchase of equipment, which is not subject to 30 percent withholding, might include shipping … Read More

Why Nature of Income Paid to Foreign Vendors Matters Part 3 – Uncategorized Income

Why Nature of Income Paid to Foreign Vendors Matters Part 3 – Uncategorized Income

In order for payments to foreign vendors to be timely made and correctly withheld and reported, accounts payable (AP) personnel need to know the nature of the income before payment is made, ideally before the invoice is received. Since many payments are based on the terms of the agreement, this can best be determined at … Read More

Forms 1099-R for 2014 Has a New Distribution Code, and Form 5498 Expands with New Boxes 15a and 15b

Forms 1099-R for 2014 Has a New Distribution Code, and Form 5498 Expands with New Boxes 15a and 15b

The IRS has released a draft of Form 1099-R and the Instructions for Forms 1099-R and 5498 for distributions and contributions made in 2014 and reported in 2015. Both the 1099-R and 5498 have changes for 2014 to enable identification of non-cash distributions and Fair Market Values that must be determined where FMV is not … Read More

IRS Large Business & International Division Issues New Rules Governing Information Document Requests in Examinations

IRS Large Business & International Division Issues New Rules Governing Information Document Requests in Examinations

The IRS Large Business and International Division has announced that all Information Document Requests (lDRs) issued after June 30, 2013, must comply with certain new principles. If the new rules are not followed, IDRs will not have effect. Moreover, any existing Memorandum of Understanding relating to IDR management that does not comply with the … Read More

onesource

Alert: IRS Announces Postponement from January 1 to July 1 for Many Items of FATCA Compliance

Notice 2013-43, an advance copy of which was released today, revises the timeline set by the FATCA final regulations for certain elements of due diligence, tax withholding, and reporting under Chapter 4 of the Internal Revenue Code, the Foreign Account Tax Compliance Act known as FATCA. Notice 2013-43 will be officially published on July … Read More

onesource

Japan signs FATCA Implementation Agreement

The U.S. Department of Treasury has announced a statement of mutual cooperation and understanding for implementation of the U.S. Foreign Account Tax Compliance Act (FATCA). The statements will serve as a FATCA intergovernmental agreement (IGA) following the Treasury Department’s Model 2 structure for direct reporting by Japanese financial institutions to the U.S. Internal Revenue Service. … Read More