On May 27, the IRS updated the technical FAQs for the International Data Exchange Service (IDES) used by foreign financial institutions (FFIs) and other organizations to file information returns required by the Foreign Account Tax Compliance Act. Among other changes, the IRS provided a work-around for direct-reporting non-financial foreign entities (direct reporting NFFEs) that must
May 2016
IRS Error Leads to Erroneous Penalty Notices
The IRS announced that some taxpayers may have been erroneously assessed failure to deposit penalties after an IRS system error failed to account for the April 15, 2016, holiday in Washington, D.C. The holiday moved the deadline for payroll tax deposit to April 18, 2016. However, some taxpayers who timely deposited payroll taxes by the…
IRS Modifies 2015 6050W Letter Ruling
The IRS released a modified private letter ruling superseding a ruling issued in late 2015 under Section 6050W. That ruling had determined that the party requesting the ruling was a third-party settlement organization. The new ruling does not change the conclusion, but removes one rationale upon which the earlier ruling had based its determination.
In…
IRS Issues Regulations Relating to Employees of Disregarded Entities
Yesterday, Treasury and the IRS released final and temporary regulations under Section 7701 meant to clarify issues related to the employment of owners of disregarded entities. In 2009, the IRS issues regulations that required disregarded entities be treated as a corporation for purposes of employment taxes including federal income tax withholding and Federal Insurance Contribution…