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The IRS is stepping up reporting scrutiny, specifically focusing on tax credits. There’s no more relevant example than the 1099 reporting changes that heightened error exposure for reporting organizations during the 2016 tax season. Tax information reporting requirements are becoming more complex, with changing deadlines, enhanced tracking and stiffer penalties for non-compliance. This leaves financial […]

Tax compliance has evolved at a rapid pace in recent years. As governments go digital, loopholes are closing and reporting timelines are shrinking from weeks to milliseconds. The old way of doing things isn’t enough for the new world of rapid-response compliance. But these new challenges can also foster new opportunities. Businesses are taking a […]

Illinois’s Department of Revenue has lately released new tax tables and a new withholding allowance certificate in conjunction with it an increase in the state’s tax rate.  Effective July 1, 2017, the income tax rate in Illinois is 4.95%, increased from 3.75%. Booklet IL-700-T, “Illinois Withholding Tax Tables,” has been updated effective July 1, 2017.  […]

At last week’s G20 summit, OECD Secretary General Angel Gurría reported to world leaders that the past year has seen progress on multiple fronts in the fight against tax avoidance and evasion – thanks in large part to the Convention on Mutual Administrative Assistance in Tax Matters. The official report explores the key areas of progress, including the movement […]

The Idaho State Tax Commission has issued a revised Guide to Income Tax Withholding. The revision is a routine update of the tables for withholding computation methods for 2017. These tables are periodically adjusted for inflation. Although these figures are effective for 2017, withholding agents are not required to adjust the withholding amounts for the months of January […]

Belgium recently announced it will extend the deadline for CRS reporting this year.  Reporting was originally due at the end of June, but Belgium has delayed reporting until the end of July.  This delay is only for CRS and does not affect FATCA reporting which was due at the end of June.  The announcement of […]

Virginia Tax has published a revision of its eForms W-2 – 1099 Guide, which filers should utilize in order to ensure accurate and complete online submissions. The Business iFile system allows the use of eForms, which is a free, secure online service that allows employers and payers to electronically file forms W-2, 1099-R, and 1099-MISC directly […]

The IRS has released ACA Information Returns (AIR) Schemas, Business Rules and Crosswalks for Tax Year 2017. The business rules, schemas and crosswalks are for Forms 1094-B, 1094-C, 1095-B, and 1095-C. There are a number of changes from last year’s with many of the changes coming in the form of name changes for certain data […]

Cook County Illinois suspended collection of their recently enacted sweetened beverage tax after receiving a temporary restraining order from Cook County Circuit Court. The sweetened beverage tax consisted of a $0.01 tax on each ounce of sweetened beverage sold at retail effective July 1, 2017. The Illinois Retail Merchants Association and several grocers sued the […]

New Mexico recently updated a published bulletin which details the effective interest rates for late payments on tax due. This bulletin lists the annual and daily percentage rates for the late payment of taxes due, along with a method for calculating daily interest during the applicable period. The annual rate of interest remains unchanged from […]

Minnesota’s Department of Revenue recently updated Minnesota Income Tax Withholding Instruction Booklet and Tax Tables as well as Fact Sheets 2 and 2a.  The Instruction Booklet provides general direction for withholding while Fact Sheets 2 and 2a provide more detailed instructions for submitting W-2 and 1099 information, respectively.  Most importantly, all three documents have advanced the […]

Curacao’s Ministry of Finance has released FATCA and CRS guidance regarding data specifications for XML transmittals and use of the online financial data exchange portal. The Manual of Automatic Exchange of Information, which provides information for both FATCA and CRS transmittals, has been revised to reflect the following updates: The AccountReport – Payment element has been updated to […]

The Nauru Department of Finance has released information on excluded accounts under the Common Reporting Standard. The newly published regulations provide that dormant accounts will be excluded for the purposes of CRS reporting. The definition of a “dormant account,” in addition to the conditions for ceasing to be classified as dormant, is explained in detail within these […]

The IRS has published Frequently Asked Questions regarding the FFI agreement renewal. The deadline for the renewal is July 31, 2017, and the obligation to renew applies to Participating FFIs not covered by an IGA, Reporting FFIs under a Model 2 IGA, and Registered Deemed-Compliant FFIs that are Reporting FFIs under a Model 1 IGA operating branches […]

The South Africa Revenue Service (SARS) recently issued a reminder on their main AEOI site that reporting financial institutions (RFIs) may be liable for administrative penalties if they missed the filing deadline of May 31, 2017 for FATCA and CRS reporting. RFIs may be liable for administrative penalties if there is a failure to report in a […]

The British Virgin Island’s Ministry of Finance recently announced an extension for reporting under the Common Reporting Standard (CRS).  CRS reporting had previously been due July 31, but a in a June 28 press release, the Ministry announced the due date will be August 18 for reporting 2016 information.  CDOT information, now reported as part […]

On June 26, 2017, Governor John Bell Edwards signed House Bill 629 into law (Act No. 424).  Under this Act, polyroll tubing for commercial farm irrigation is now exempt from tax, as well as purchases and leases by qualifying radiation therapy treatment centers.  Act No. 424 also limits the exemption for fuels and gases to […]

The IRS recently released Bulletin No. 2017-26. The bulletin is noteworthy particularly because part of this Bulletin will be repurposed into Publication 1179. Below is a list of the changes the IRS has specifically highlighted for attention: Vendor code. The use of a vendor code is encouraged in place of a form printer EINs. See Section […]