The IRS considers any person that has control, receipt, custody, disposal or payment of any item of income of a foreign person that is subject to withholding a U.S. Withholding Agent. A withholding agent is responsible to withhold tax on payments of US sourced FDAP (Fixed or Determinable Annual or Periodic) income to foreign personals [...]
The IRS initiated a program that enables mid to large size companies to work with the IRS to identify and resolve tax issues prior to filling. This program is known as the Compliance Assurance Program (CAP). The program was in trial mode for the past 6 years and in June the IRS announced that they [...]
Is he/she an employee or an independent contractor? As the Internal Revenue Service begins to crack down on this issue business owners must be sure that they are choosing the correct classification. There are a few ways that you tell whether you have an employee on your hand or an idependent contractor. Take a look [...]
The IRS recently released additional information on the 2011 Offshore Voluntary Disclosure Initiative (OVDI) in the form of an update to their Frequently Asked Questions. These additions include: 1. 90 day extension of the deadline beyond August 31, 2011 – Request for extension must include a statement of those items that are missing, the reasons [...]
The IRS has announced that they will be extending the deadline for 2009 and 2010 filings of Forms 8955-SSA from August 2011 to January 17th, 2012. Form 8955-SSA is used to report participants with deferred vested pension benefits. Only the 2009 form and instructions have been released, with the 2010 coming shortly. Filing the 8955-SSA [...]
Employers should be advised on a bogus email scam referencing Electronic Federal Tax Payment System (EFTPS). The email being circulating contains a link, if clicked on, could be malicious software. This software is designed to gain scammers access to your financial information. The Internal Revenue Service does not make contact with taxpayers regarding EFTPS via [...]
Beginning January 1, 2011 Federal tax deposit coupons will no longer be accepted for submitting depository taxes by businesses. As of this date all federal payments should be made electronically. The system in which the IRS has set up to receive such payments is Electronic Federal Tax Payment System (EFTPS). The process of enrolling in [...]
On Tuesday, February 8th, the Internal Revenue Service announced that it will be offering another chance for taxpayers with foreign accounts to get in compliance with federal tax law. Under the 2011 Offshore Voluntary Disclosure Initiative, taxpayers have until August 31, 2011 to disclose offshore assets and income to the IRS. While the terms of [...]
Inherited property continues to qualify for a stepped-up tax basis, even after recent tax changes. A Cost Segregation Study of your depreciable property will provide results which result in faster depreciation deductions. Shorter depreciation periods reduces income taxes in the early years of ownership, greatly increasing the cash flow in those early years. A Cost [...]
The Internal Revenue Service has introduced IRS2GO, a smartphone application that allows taxpayers to check to status of their return from their phone. For more information check out this link.