Archive: withholding

  • Clear Filters

IRS Trust Fund Penalty Enforcement Heats Up

Much to the surprise of many business owners and those involved in financial operations, the IRS will hold responsible individuals personally liable for employee withholding taxes not turned over to the government. The entity — be it a corporation, limited liability company, or limited partnership — does not offer any protection against personal liability for […]
June 4, 2014

The 2013 S-Corp Shareholder W-2 Explained

YOUR GUIDE TO CORRECTLY REPORTING TAXABLE FRINGE BENEFITS As December signals the close of the year, one of the most frequently asked questions I receive is, “What fringe benefits do you need to include on a W-2 for a greater than 2% shareholder?” A common concept that is widely misreported on form W-2, fringe benefits […]
December 13, 2013
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  • Aronson

Back-Up Withholding and Form 1099

Why Your 1099 Filing Could Trigger an IRS Notice Does your business solicit the services of independent contractors, freelancers, or other non-employee workers? If so, the IRS may have its sights on you. While much of the economy has been focused on the healthcare-related effects of the Affordable Care Act (ACA), there were several supplemental […]
November 20, 2013
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  • Aronson

IRS Extends FATCA Implementation Deadline

On March 18, 2010, the Foreign Account Tax Compliance Act (FATCA) was enacted under Sections 1471 through 1474 of the U.S. Internal Revenue Code. If certain due diligence and reporting requirements are not satisfied, FATCA generally imposes a 30% withholding requirement on payments of certain types of U.S. source income to foreign financial institutions (FFIs) […]
August 10, 2013

Caution: More than One Type of U.S. Federal Tax Withholding Could Be Required for Foreign Partners in a U.S. Partnership

It is very important for a U.S. partnership to determine the residence status of all partners in the partnership. A U.S. partnership is required to report whether a partner is a foreign partner on the Schedule K-1 filed with the Form 1065 federal partnership tax return. A partner is considered to be a foreign partner […]
April 16, 2013

Caution: FIRPTA Withholding Exemption Certificates—Mirage or Oasis?

The Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”) requires foreign persons who sell U.S. real property (or certain U.S. real property interests) to pay a 10% U.S. withholding tax on the gross sale proceeds. If the foreign person’s final U.S. tax liability on the gain from the sale of the U.S. real […]
April 1, 2013

Pennsylvania Enacts Job Creation Incentive, but Beware of the Clawback

Pennsylvania has enacted a new job creation law allowing qualified companies to retain 95% of the withholding taxes for the individuals employed in the newly created jobs. The Promoting Employment Across Pennsylvania Act (L. 2012, H2626, effective 10/26/2012), which was signed into law by Governor Tom Corbett on October 26, 2012, offers the 95% retention […]
December 10, 2012