With taxpayers in the throes of planning their 2011 income tax returns, now’s a good time to remind filers not to overlook new cost basis reporting rules governing securities sales. In the past, they had the option of specifying which shares they sold when computing their cost basis. But as of ...
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Who’s a Form 1099-K Filer and Who’s Not?
1099, 6050W, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on January 23, 2012
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 ...
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IRS Releases New FAQs to Help Payers Understand the New Tax Reporting of Form 1099-K (I.R.C. Section 6050W)
1099, 6050W, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, Trust Tax, Withholding Management 0 CommentPosted on November 21, 2011
The IRS has revised and updated the Frequently Asked Questions (FAQs) posted on the IRS website for payers who need to know about Form 1099-K reporting. The updated FAQs are at http://www.irs.gov/newsroom/article/0,,id=249029,00.html. They cover developments as recent as the postponement of the start of backup withholding on Form 1099-K payables (to the ...
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New W-9 (Rev. Dec 2011) Released
1042-S, 1099, 6050W, Cost-Basis Reporting, Document and WorkFlow Management, FATCA, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, TIN Compliance, Trust & Estate Administration, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on November 16, 2011
Over the past nine months, the IRS received multiple complaints about the recently released W-9 (Rev. Jan 2011). Criticism centered on the tax classification area, where the word, required, was added. This led filers to believe that the tax classification section was mandatory, where, in fact, it is not. Due to the high number of ...
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Self-Insurance Arrangements – Relief from IRC Section 6050W Requirements
1099, 6050W, ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on November 14, 2011
Notice 2011-78 provides relief to insurance companies administering certain self-insurance arrangements from information reporting obligations under Section 6050W of the Internal Revenue Code. Under the self-insurance circumstances identified in Notice 2011-78, an insurance company will not be treated as a third-party settlement organization with Form 1099-K reporting responsibility. Insurance companies may rely on ...
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IRC Section 6050W – Recent Developments
1099, 6050W, ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on November 9, 2011
Relief Provisions and FAQs on IRC Section 6050W Payments The IRS is providing special transitional relief to banks and other payment settlement entities required to begin reporting payment card and third-party network transactions to the IRS on new Form 1099-K. By law, reporting is scheduled to begin in early 2012 for ...
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QIs Have No Choice with Regard to FATCA
1042-S, 1099, 6050W, Cost-Basis Reporting, Document and WorkFlow Management, FATCA, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, TIN Compliance, Trust Tax, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on November 7, 2011
In last week’s EEI conference, it was announced that Qualified Intermediaries (QIs) will have no choice but to register to become a Participating Foreign Financial Institution (PFFI). This announcement came as quite a shock to some of the QIs that attended the Washington event, who assumed that they have the choice ...
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Positive Future Changes for the W-8BEN
1042-S, 1099, 6050W, Cost-Basis Reporting, Document and WorkFlow Management, FATCA, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, TIN Compliance, Trust Tax, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on November 3, 2011
In last week’s EEI conference, Michael Danilack, Deputy Commissioner at the IRS, announced some positive changes for those having to collect and audit the W-8BEN. The term he used was "clearing the underbrush" which, in essence, means that the IRS is aware that they have been too strict on the validation rules ...
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Join Us at the Tax Information Reporting Forum
1042-S, 1099, 6050W, Cost-Basis Reporting, Document and WorkFlow Management, FATCA, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, TIN Compliance, Trust Tax, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on October 19, 2011
Information Reporting (1099) is becoming more complicated and the risks relating to non-compliance or inaccurate reporting are high. The recent changes to FATCA, 1099 reporting, 1042 and 1042-S, foreign reporting and cost-basis reporting will affect your business, whether it's a corporation, a bank, a trust department or a wealth management ...
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IRS Adds a Box to Report Merchant Control Code (MCC) Numbers on Form 1099-K
1099, 6050W, ONESOURCE, Tax Information Reporting, Trust Tax 0 CommentPosted on September 28, 2011
The IRS has published a new version of the 2011 Form 1099-K, Merchant Card and Third Party Network Payments. What’s New? The IRS has designated Box 3 of the 1099-K for reporting the Merchant Control Code (MCC) number assigned to the recipient. The MCC is a code number, which a payment card association assigns to Merchant/Payees ...
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IRS Document Requests Include Copies of Accounting Software Backup Files
1042-S, 1099, 6050W, Cost-Basis Reporting, Document and WorkFlow Management, FATCA, Information Reporting for Wealth Management, Tax Information Reporting, TIN Compliance, Trust Tax, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on September 19, 2011
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 ...
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Understanding FATCA (Foreign Account Tax Compliance Act)
1042-S, 1099, 6050W, FATCA, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, Trust Tax, W-8 & W-9 Foreign Reporting 0 CommentPosted on September 14, 2011
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 ...
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Want Proof of Mailing to the IRS on Time?
1042-S, 1099, 6050W, Cost-Basis Reporting, Document and WorkFlow Management, FATCA, Information Reporting for Wealth Management, Tax Information Reporting, TIN Compliance, Trust Tax, US Income Tax Compliance, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on September 12, 2011
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 ...
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IRS Will Allow Substitute Forms W-8BEN to Document the Foreign Status of a Payee that Otherwise Would be Reported on the New Form 1099-K
1099, 6050W, FATCA, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, TIN Compliance, Trust Tax, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on September 8, 2011
The new Form 1099-K will be used for tax information reporting of the gross amounts paid by a settlement entity to its participating payees. Participating payees that will be reported are recipients that accept payment cards as a means of payment, and recipients that accept payment through third-party settlement organizations. ...
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