Tax & Accounting Blog

Understanding FATCA – Part 1 of a 3 Part Series

Understanding FATCA – Part 1 of a 3 Part Series

The Foreign Account Tax Compliance Act (FATCA) was enacted as part of the Hiring Incentives to Restore Employment (HIRE) Act on March 18, 2010. FATCA creates a new information reporting and withholding regime for payments made to certain Foreign Financial Institutions (FFIs) and other foreign entities. FATCA is intended to increase transparency for the IRS with … Read More

IRS Updates List of Tax Treaties that Are Satisfactory for Purposes of the Qualified Dividend Rule

IRS Updates List of Tax Treaties that Are Satisfactory for Purposes of the Qualified Dividend Rule

When a domestic corporation or a qualified foreign corporation pays a dividend to an individual shareholder, the dividend is taxed at the reduced rates applicable to long term capital gains if the shareholder meets certain holding period requirements. Subject to certain exceptions, a qualified foreign corporation includes certain foreign corporations that are eligible for benefits of … Read More

Proposed Jobs Act Includes Provision Delaying Implementation of Law Requiring 3% Withholding

Proposed Jobs Act Includes Provision Delaying Implementation of Law Requiring 3% Withholding

The President’s Jobs Act Includes a Provision to Delay Implementation of the Law Requiring 3% Withholding by Government Payers for Goods and Services   The American Jobs Act of 2011 proposed by the President includes a wide range of tax cuts, tax credits, state funding assistance, infrastructure and property rehabilitation projects – and tucked away near … Read More

IRS Document Requests Include Copies of Accounting Software Backup Files

IRS Document Requests Include Copies of Accounting Software Backup Files

Did you know that IRS requests for documents for examination are now routinely specifying backup copies of electronic accounting software records instead of paper books and records? The IRS Small Business/Self Employed (SB/SE) division (which is heavily involved in Form 1099 tax reporting and withholding, among other issues) published a set of FAQs last week … Read More

Understanding FATCA (Foreign Account Tax Compliance Act)

Understanding FATCA (Foreign Account Tax Compliance Act)

The Foreign Account Tax Compliance Act (FATCA) imposes an additional 30% withholding tax on certain U.S. source payments made to “foreign financial institutions” (“FFIs”) and “non-financial foreign entities” (“NFFEs”) that refuse to disclose information to the IRS about U.S. investors, even if those investors hold only non-U.S. assets. Due diligence requirements for identifying new and … Read More

Want Proof of Mailing to the IRS on Time?

Want Proof of Mailing to the IRS on Time?

Don’t Rely on USPS First Class, Priority Mail or Delivery Confirmation Service Did you know that the only ways to establish prima facie evidence of delivery of documents that have a filing deadline prescribed by the Internal Revenue laws are the delivery methods that are specifically authorized in the tax regulations for timely mailing as … Read More