Regulatory Analysis

Posted September 28, 2017 by Sovos
IRS Releases Notice Detailing Procedures for FFIs required to report U.S. TINs under FATCA Model 1 IGAs

The IRS released an advance version of Notice 2017-46 which details procedures for FFIs required to report U.S. TINs under FATCA Model 1 IGAs. In this advance notice, the IRS establishes that they will not determine that there is significant non-compliance with reporting obligations under an applicable Model 1 IGA during calendar years 2017, 2018, […]

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Posted September 28, 2017 by Sovos
IRS Notice Addresses Narrowing in Circumstances in Which a Foreign TIN is Required

The IRS released a notice detailing forthcoming changes to Chapter 3 of the Internal Revenue Code ("Code") regarding reporting on Form 1042-S. Specifically, the IRS reported that the amendment will narrow the circumstances in which a Foreign TIN and date of birth ("DOB") will be required.  A phase-in period will be adopted for FIs to […]

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Posted September 27, 2017 by Sovos
Latest Senate ACA Repeal Effort Falls Short

The Senate announced that the Graham-Cassidy bill to repeal the Affordable Care Act would not be brought forward to a vote. The bill was announced approximately two weeks ago and seemed to have some momentum. However, Senators McCain (R-AZ) and Paul (R-KY) quickly came out against the bill. On Monday, Senator Collins (R-ME) announced that she […]

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Posted September 25, 2017 by Paul Ogawa
IRS Issues Corrections to Income Codes in the 2017 Instructions for Form 1042-S

The IRS recently issued a correction to their 2017 Instructions for Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding. The 1042-S is generally used to report payments from U.S. sources to foreign persons. The IRS corrections relate to income codes on page 21 of the 2017 Instructions for Form 1042-S. Income Code 54 […]

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Posted September 20, 2017 by Jesse Rooney
Missouri Releases Filing Guidelines for Electronic Filing of W-2s, 1099s

Missouri’s Department of Revenue has released electronic guidelines for electronic filings of W-2s and 1099s. This follows a prior announcement that employers filing 250 or more W-2s for tax year 2017 will need to file with the Department electronically by January 31, 2018. The Department will continue to accept W-2s from employers with fewer than […]

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Posted September 20, 2017 by Adam Rivera
IRS Releases Proposed Regulation Allowing Use of Truncated TINs on Form W-2s Furnished to Employees

The IRS has recently released Proposed Regulation REG-105004-16, which would allow the use of truncated Taxpayer Identification Numbers (TINs) on Forms W-2 furnished to employees. The main thrust of this proposal would be to aid employers’ efforts to protect employees from identity theft, and these proposed regulations would amend existing regulations to permit employers to […]

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Posted September 20, 2017 by Paul Ogawa
North Carolina Releases Notice of Withholding Tax Changes

The North Carolina Department of Revenue has released an information bulletin detailing important information about withholding tax as it relates to employers, pension payers, and other relevant parties. Of particular importance are changes relating to the filing of Form NC-3, the Annual Withholding Reconciliation form, and a change to the withholding rate for Tax Year […]

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Posted September 19, 2017 by Jesse Rooney
Cayman Islands Closes AEOI Portal, Issues Statement on Late Filing

The Cayman Islands’ Department for International Tax Cooperation closed its AEOI portal on September 13. The portal was originally scheduled to be closed on August 31 in line with the Department’s deadline for AEOI reporting, but the Department kept the portal open until September 13 to accommodate late filers. The Department stated that it will […]

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Posted September 18, 2017 by Paul Ogawa
IRS Issues Reminder to Foreign Financial Institutions Regarding FATCA Registration Status

The IRS recently published a reminder to foreign financial institutions (FFIs) to renew their FFI agreements. In IR-2017-153, the IRS warns FFIs that if they do not complete their renewal of their FFI agreement by October 24, 2017, they will be treated as having terminated their FFI agreement as of January 1, 2017. This means any […]

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Posted September 7, 2017 by Paul Ogawa
Arizona Advances Filing Due Dates for 1099 and W-2 Reporting

In a posting on their website, the Arizona Department of Revenue announced that Forms A1-R and A1-APR (and any relevant 1099/W-2G/W-2 forms) will be due January 31, 2018 for tax year 2017. This change is effective for tax year 2017 and forward, and brings the filing date in line with the federal standard. While the Arizona DOR […]

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Posted September 6, 2017 by Jesse Rooney
Singapore to Open CRS Reporting Registration, Solicits Comments on CRS e-Tax Guide, Updates CRS FAQs

Singapore’s Inland Revenue Authority announced it will be opening registration for CRS on August 31. Reporting Singaporean financial institutions must register between August 31 and March 31, 2018 to ensure they can file CRS reports with the IRA in 2018, the first year Singapore has committed to CRS reporting. Reporting will be due by May […]

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Posted September 6, 2017 by Jesse Rooney
Cayman Islands Extends AEOI Portal Opening to September 13

In a August 30 revision to its AEOI News & Updates, Cayman Islands’ Tax Information Authority announced it will leave its AEOI portal open until 4pm local time, September 13 “to accept late registrations, variations, reporting and filing declarations….”  Prior language that the deadline for submission of FATCA and CRS reportings were due August 31 […]

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Posted August 31, 2017 by Paul Ogawa
Minnesota Releases Updated Application for Business Registration

Minnesota recently published an updated version of Form ABR, Application for Business Registration. This form is used by active businesses to register with the Minnesota Department of Revenue for a multitude of tax purposes, including withholding tax. There are only minor changes to the form in this most recent update, which include the following: Section […]

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Posted August 29, 2017 by Jesse Rooney
California Releases Updated DE 532, Direction for ACH Payments

California’s Employment Development Department has revised its publication DE 532. This document provides instructions on how to set up an ACH payment to the Department. The publication had previously been titled “Information for your Bank,” and is now titled “Automated Clearing House (ACH) Credit Information Guide.” The revised edition provides more detailed information on arranging […]

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Posted August 23, 2017 by Stephen Kessinger
Dismissed Lawsuit Challenging FATCA Appeal Fails

The Sixth Circuit for the United States recently upheld a dismissal of a suit brought by individuals challenging the legitimacy of FATCA.  Plaintiffs argued that FATCA’s enforcement should be enjoined under a variety of reasons, including the requirement that the IGAs be ratified through the US Senate.  The Circuit Court upheld the District Court’s dismissal […]

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Posted August 23, 2017 by Adam Rivera
Hawaii Legislature Passes Senate Bill 1007, Mandates Quarterly Filing Frequency for All Filers

The Hawaii Legislature has passed Senate Bill 1007. This bill changes the filing frequency for withholding tax to a uniform quarterly filing frequency. Prior to this bill, only employers with withholding liabilities of $5,000 or less were allowed to file returns quarterly. Despite the change in filing frequency, the payment frequency of withholding taxes remains […]

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Posted August 18, 2017 by Paul Ogawa
British Virgin Islands Extends Reporting Deadline for CRS and CDOT

The British Virgin Islands recently issued a press release extending the reporting deadline for FIs from August 18, 2017 to September 1, 2017. This extension applies to FIs reporting under the CRS and UK CDOT agreements, and is being granted because the BVI Financial Account Reporting System (BVIFARS) is down as a result of a Tropical […]

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Posted August 18, 2017 by Paul Ogawa
Washington D.C. Updates Annual Withholding Instructions

The D.C Office of Tax & Revenue (OTR) recently published two updates to instructions for annual withholding forms. These instructions are used to properly fill out and file their respective forms. The first set of updated instructions is for Form FR-900A, the Employer/Payer Withholding Tax Annual Return. Generally, the OTR reminds filers they will be […]

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