Wednesday, August 22, 2012

IRS' New Increased Focus on Tax Information Reporting & Withholding


Tax information reporting and withholding requirements are rapidly expanding, including an increased focus on U.S. source income for foreign persons by the Internal Revenue Service, Deloitte Tax LLP said in a report made public Aug. 21.

This change signals a new direction in the government's focus on tax compliance, Deloitte said. Taxpayers now are confronted with a variety of new reporting responsibilities, including those required under the Foreign Account Tax Compliance Act, Deloitte said.

“The information reporting compliance environment has changed,” the report stressed, noting that in the past, IRS enforcement efforts focused less on information reporting compliance than on income tax compliance.

Accordingly, many companies did not devote extensive resources to compliance in the information reporting area, Deloitte said.

But this has changed. “The IRS and Treasury Department are now firmly focused on the payment and reporting of income paid by companies to U.S. recipients on a worldwide basis,” the report said.


If you have any Tax Information Reporting or Withholding questions, contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at www.TaxAid.us or www.TaxLaw.ms or Toll Free at 888-8TaxAid (888 882-9243).

 

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