Foreign financial institutions and governments might initially have groaned when the U.S. Congress passed the Foreign Account Tax Compliance Act in March 2010, but it looks like at least some of them are starting to come around. In February, the U.S. Treasury announced it had partnered with five European nations ...
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Partners and Details Firming around FATCA
1042-S, 1099, Document and WorkFlow Management, FATCA, Global Tax Compliance, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, TIN Compliance, Trust Tax, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on April 11, 2012
Learn the Latest in Nonresident Alien and Foreign Vendor Tax Compliance
1099, FATCA, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on April 2, 2012
Paula N. Singer, Esq., Thomson Reuters practice leader, will present a number of sessions on nonresident alien and foreign vendor tax compliance this spring during webcasts, training seminars and trade shows. Murthy Law Firm’s Corporate Telecast On April 4, 2012, Paula will participate in Murthy Law Firm’s corporate telecast, U.S. Tax Issues for ...
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The New Realities of Tax Risk Management
Corporate Income Tax, Cost-Basis Reporting, FATCA, Forecasting, Global Tax Compliance, ONESOURCE, Risk Assessment, Tax Provision, Transfer Pricing, Uncertain Tax Positions, US Income Tax Compliance, WorkFlow Manager 1 CommentPosted on February 22, 2012
The Tax Council Policy Institute (TCPI) tax risk conference that I attended on February 15 and 16 in Washington, DC brought together experts and stakeholders from across the industry. Over 280 professionals from corporate tax, trade, risk,and treasury groups met with tax lawyers, accounting firms, and revenue agencies to discuss policy and ...
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Withholding on U.S. Business Income of Foreign Vendors – Part 1
FATCA, ONESOURCE, Tax Information Reporting, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on February 20, 2012
Foreign vendors being paid by U.S. organizations may include foreign enterprises that are engaged in a U.S. trade or business. Income of a foreign vendor that is effectively connected with the enterprise’s U.S. trade or business is subject to U.S. income tax after allowable deductions at graduated rates. Such effectively connected income ...
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Information Reporting on Form 1042-S: A New Challenge for Accounts Payable
1099, FATCA, ONESOURCE, Tax Information Reporting, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on February 15, 2012
Reporting income and taxes withheld on payments made to corporate vendors recently became more challenging for accounts payable (A/P) departments of both for-profit and not-for-profit organizations with the new IRS compliance focus on payments to nonresident alien individuals, foreign entities and foreign governments (collectively, foreign persons). A/P departments familiar with the ...
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FATCA Proposed Regulations Are Issued by IRS
1042-S, 1099, FATCA, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, Trust Tax, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on February 8, 2012
The long-awaited proposed tax regulations for FATCA, the Foreign Account Tax Compliance Act, were issued February 8 by the IRS. An electronic copy is available at http://www.irs.gov/pub/newsroom/reg-121647-10.pdf . FATCA imposes new disclosure obligations on foreign financial institutions that maintain U.S. accounts, and on certain non-financial foreign entities; and FATCA establishes new ...
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Penalties for Failure to Comply with NRA Withholding and 1042-S Information Reporting – Part 3: Penaly for Late 1042-S Submission
FATCA, ONESOURCE, Tax Information Reporting, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on February 6, 2012
U.S.-source income payments to foreign persons that are subject to withholding or that are exempt from withholding under an Internal Revenue Code or income tax treaty provision must be reported on Form 1042-S. Unlike the rules for Form 1099, Form 1042-S is required whether or not the payer is engaged in ...
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Penalties for Failure to Comply with NRA Withholding and 1042-S Information Reporting: Part 2 – A Penalty for Late Deposit
1042-S, FATCA, ONESOURCE, Tax Information Reporting, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on February 1, 2012
The IRS prescribes when deposits of NRA withholding are required in IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. A payer who fails to make a required deposit of withheld taxes within the time prescribed is liable for a penalty on the underpayment (i.e., the excess of the ...
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Penalties for Failure to Comply with NRA Withholding and 1042-S Information Reporting – Part 1
1042-S, 1099, FATCA, ONESOURCE, Tax Information Reporting, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on January 18, 2012
In August of 2010, the IRS announced "executing our international strategy is a top priority, and our work continues to intensify in this area." Included in this strategy is a requirement for examiners to review withholding and reporting on payments to foreign individuals and entities during corporate audits. Other organizations should anticipate ...
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Form 1042-S: IRS Alerts Payers to the Correct Use of Codes for Unknown Recipient and Unknown Country
1042-S, 1099, FATCA, ONESOURCE, Tax Information Reporting, Trust Tax, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on January 10, 2012
A perennial problem in Form 1042-S reporting, noted by the IRS in the current edition of Publication 1187, is misreporting which results from the payer not making correct use of Unknown Recipient (recipient code 20) and Unknown Country (country code UC). UC is used as a country code only when you ...
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New IRS Form to Report Foreign Assets
FATCA, Global Tax Compliance, Information Reporting for Wealth Management, ONESOURCE, Tax Information Reporting, Trust Tax, Trusts, US Income Tax Compliance, W-8 & W-9 Foreign Reporting 0 CommentPosted on January 3, 2012
The IRS recently released a draft of new Form 8938 that requires taxpayers to report on certain foreign financial assets for tax year 2011. This reporting is part of FATCA (Foreign Account Tax Compliance Act), which strives to improve compliance of U.S. taxpayers who have offshore assets. This new IRS filing requirement ...
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Why the Nature of Income Paid to Foreign Vendors Matters
1042-S, 1099, FATCA, ONESOURCE, Tax Information Reporting, Trust Tax, W-8 & W-9 Foreign Reporting 0 CommentPosted on December 29, 2011
U.S. organizations making payments to vendors must determine whether the vendor is a U.S. person or a non-U.S. person because only payments to U.S. persons (actual or presumed) are covered by Form 1099 rules and procedures. The term, U.S. persons, includes U.S. citizens, resident aliens (based on I.R.C. Section 7701(b), ...
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Residency for Treaty Purposes: Corporations
1042-S, 1099, FATCA, ONESOURCE, Tax Information Reporting, Trust Tax, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on December 27, 2011
The United States has income tax treaties with over 60 countries for the purpose of avoiding double taxation. The Residency Article of an applicable income tax treaty sets forth rules for determining which entities and individuals (collectively, persons) are residents of a country for purposes of the treaty. As the IRS ...
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When a Foreign Vendor Needs a U.S. Taxpayer Identification Number
1042-S, FATCA, ONESOURCE, TIN Compliance, Trust Tax, W-8 & W-9 Foreign Reporting, Withholding Management 0 CommentPosted on December 22, 2011
The IRS is in the process of enforcing compliance of long-standing rules requiring U.S. tax withholding on U.S.-source income payments to nonresident aliens and foreign entities (collectively, foreign persons). As a result, foreign vendors are being asked by their clients to provide them with a U.S. withholding certificate to document ...
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