IRS explains how to correct a failure to follow retirement plan terms
Retirement News for Employers
In its Retirement News for Employers, IRS has explained how to correct the common retirement plan mistake of failing to follow the plan terms in its operation. IRS clarified when a plan amendment can be used to correct this mistake via the Employee Plans Compliance Resolution System’s (EPCRS) Self-Correction Program (SCP).
Most common questions by corporations and other business entities on 1099 reporting requirements. Below is a direct IRS response to frequently asked question on 1099 issues.
IRS provides further guidance on Form 1099 reporting
In an effort to stimulate the economy, the recently-enacted Economic Stimulus Act of 2008 requires the U.S. Treasury to send rebate checks to eligible individuals.
Who qualifies for rebates, how they are calculated, and what, if anything extra, needs to be done to get one.
You’ve probably heard that the government is going to be sending rebate checks to most Americans in an effort to stimulate the economy. This letter explains, among other items, who gets rebates, how they are calculated, how higher income can reduce or eliminate a rebate, and what, if anything extra, you’ll need to do to get one.
Changes made to Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding)
The IRS has made some changes to the electronic/magnetic media filing procedures for 2007 Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, and also released the 2008 version of the form. Form 1042-S is filed by withholding agents to report amounts paid to foreign persons (including persons presumed to be foreign) that are subject to U.S. withholding, even if: (1) no amount is deducted and withheld from the payment because of a treaty or Internal Revenue Code exception to taxation, or (2) the amount withheld was repaid to the payee. Amounts subject to reporting include, but are not limited to, the following U.S.-source items: (i) compensation for independent or dependent personal services performed in the U.S., (ii) compensation for personal services performed in the U.S. by students, teachers, and researchers, and (iii) amounts paid to foreign students, trainees, teachers, or researchers as scholarship or fellowship income, except that amounts exempt under IRC §117 are not subject to reporting. An item that is required to be reported on Forms W-2 or 1099 should not be reported on Form 1042-S.
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