In a notice and accompanying news release, the IRS reminded executors of the estates of married decedents dying after 2010 that they must file an estate tax return in order to pass along the unused estate and gift tax exclusion amount, available for the first time this year, to their ...
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Congress Allows Numerous Temporary Provisions to Expire at the End of 2011
ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on March 1, 2012
Congress allowed numerous temporary provisions to expire at the end of 2011. But, note that Congress may retroactively reinstate some or all of these rules. Below are some of the provisions that expired. Reduced alternative minimum tax (AMT) exemption amounts.  Absent another AMT patch, the AMT exemption amounts for tax years beginning after ...
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IRS Issues Temporary Regulations on Foreign Asset Reporting
ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on February 24, 2012
The IRSÂ issued temporary and proposed regulations fleshing out the Code Section 6038D requirement for individuals to attach a statement to their income tax return to provide information on foreign financial assets in which they have an interest. The temporary regulations are effective for tax years ending after December 19, ...
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IRS Releases Form 8937 to Report Organizational Actions Affecting Security Holders’ Basis
ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on February 22, 2012
The IRSÂ released on its website Form 8937, Report of Organizational Actions Affecting Basis of Securities, and its Instructions. The Instructions include details on who must file the form and how certain entities can otherwise satisfy their organizational action reporting obligations. New Form and Instructions The Form 8937 contains two parts. Part I ...
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IRS Proposes Regulations on Broker Reporting of Options and Debt Instruments
ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on February 16, 2012
In 2010, the IRS published final regulations (regs) relating to broker reporting of stock. On November 25, 2011, the IRS issued proposed regs that would integrate rules for broker reporting of options and debt instruments into the current final regs that explain how brokers must report stock transactions. However, the proposed regs ...
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Taxpayers Have Until April 17 to File Their 2011 Tax Returns
ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on February 3, 2012
The IRS announced that taxpayers will have until Tuesday, April 17 to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday and Emancipation Day, a holiday observed in the District of Columbia, falls this year on Monday, April 16. Â According to federal ...
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Postponed Filing Date for Section 6045B Issuer Returns
Tax Information Reporting, Trust Tax 0 CommentPosted on October 17, 2011
The Energy Improvement and Extension Act of 2008 requires brokers to report the customer’s basis for stock sales of covered securities beginning with the 2011 tax year. Section 6045B, which was added by the Act, requires companies that have an organizational action that affects stock basis to file a return with ...
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New Form for Miscellaneous Determination Requests
1099, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on October 11, 2011
The IRS has released a new form that tax-exempt organizations will use to request certain determinations about their tax-exempt status. In addition to foundation status issues, organizations will use Form 8940, Request for Miscellaneous Determination, to obtain advance approval of certain activities and exemption from Form 990 filing requirements. Organizations applying for ...
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Basis Reporting on Form 1099-B
1042-S, 1099, Cost-Basis Reporting, ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on October 6, 2011
Interim Guidance on Issues Relating to the Basis of Stock On June 22, 2011, the IRS issued Notice 2011-56. The Notice provides guidance on some technical issues relating to the basis of stock subject to broker reporting under §6045, pending publication of superseding guidance. Notice 2011-56 contains interim guidance for cost basis ...
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IRS Updates List of Tax Treaties that Are Satisfactory for Purposes of the Qualified Dividend Rule
1099, FATCA, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on October 5, 2011
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 ...
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Treasury Issues Final Rule on FBAR
Document and WorkFlow Management, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, TIN Compliance, Trust Tax 0 CommentPosted on October 3, 2011
On February 24, 2011, the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Treasury Department, issued a final rule on Foreign Bank Account Reports (FBARs). The rule addresses the scope of persons that are required to file FBARs. The rule specifies the types of accounts that are reportable and ...
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Congress Repeals 2010 Legislation that Expanded 1099 Information Reporting Requirements
ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on June 7, 2011
On April 14, 2011, the President signed H.R. 4, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011. This new law retroactively repeals unpopular Form 1099 information reporting rules added by 2010 legislation. Background Code Section 6041 requires all persons engaged in a trade or business making ...
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