Tax & Accounting Blog

Form 1042/1042-S-Related Penalties Part 1: Failure to Meet Withholding Obligations.

Form 1042/1042-S-Related Penalties Part 1: Failure to Meet Withholding Obligations.

The IRS enforces compliance with withholding obligations by collecting the underwithheld tax from payers who fail to meet their obligations to withhold and timely pay overwithheld taxes. Assessments are increased for penalties as provided by the Code (and explained in the instructions for the various forms) and for interest computed on the taxes and penalties. … Read More

Thomson Reuters Nonresident Alien Taxation Educational Webcasts Begin April 23

Thomson Reuters Nonresident Alien Taxation Educational Webcasts Begin April 23

Withholding and reporting on payments to foreign employees, students, and scholars are not simple. In addition to the rules and procedures for special withholding and reporting, there are also immigration- and tax treaty-related rules and procedures to follow to ensure compliance. ONESOURCE Nonresident Alien Taxation from Thomson Reuters offers a series of educational webcasts to … Read More

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Highlights of the Form 1042-S Changes

As we alerted readers in an earlier blog post, the IRS has published the highly anticipated draft of an all-new Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, for use in reporting 2014 income payments (reporting you will do in 2015). A copy of the draft form is available to view on the … Read More

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Cayman Islands will Adopt an Intergovernmental Agreement for FATCA Implementation

The Cayman Islands Government has announced that it will adopt an intergovernmental agreement (IGA) with the United States for implementation of the U.S. Foreign Account Tax Compliance Act, commonly known as FATCA. The Caymans-U.S. IGA will follow the “Model 1” for FATCA cooperation which was drafted by the U.S. Department of the Treasury, giving the … Read More

Ask the Expert: Can Paper W-9s be Destroyed after Scanning into your Electronic System?

Ask the Expert: Can Paper W-9s be Destroyed after Scanning into your Electronic System?

Question: Can Paper W-9s be Destroyed after Scanning into your Electronic System? Answer from Marianne Couch, principal COKALA Tax Information Reporting Services: You can destroy the original paper Forms W-9 if your electronic system and your procedures meet IRS requirements. Field Service Advice 200229011, posted on April 8, 2002 states: “If Taxpayer complies with the … Read More

IRS Study Points to Errors in Form 1099-R Reporting of Retirement Distributions to Individuals Living Outside the United States

IRS Study Points to Errors in Form 1099-R Reporting of Retirement Distributions to Individuals Living Outside the United States

The IRS Employee Plans Compliance Unit, in a review labeled the International Foreign Distribution Project, found many errors on Forms 1099-R for individuals living outside the United States. The project focused on individuals living outside the U.S. or U.S territories who received retirement plan or IRA distributions before reaching age 59 ½. Responses … Read More