• Pundits say IRS budget cuts could hurt tax compliance

    Congress has decided to cut the IRS budget down to $10.9 billion for fiscal year 2015.

    For the 2015 fiscal year, the IRS will see a 3 percent budget cut as a result of a Congressional decision to cut funding. The reduction in funding reduces IRS resources to collect revenues via audits and forces them to consider other means to reduce the tax gap and improve collections.

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  • What is Form 1098?

    Form 1098 is for reporting certain mortgage interest payments.

    Form 1098, Mortgage Interest Statement, is a tax form related to home loan lenders. It is used to report mortgage interest payments of $600 or more made within the calendar year. 

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  • What is Form 1099-C?

    Lenders must file Form 1099-C for debts settled in court that meet the IRS threshold.

    Form 1099-C, Cancellation of Debt, is a tax information reporting form that certain debtors receive if an outstanding amount is settled. Form 1099-C can include reporting on canceled debts from financial institutions, the U.S. Postal Service, the federal government and any organization that is in the business of lending money.

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  • Final deadline to obtain a GIIN for FATCA compliance approaches

    FFIs that do not have a GIIN should obtain one from the IRS Web portal before the upcoming deadline.

    Beginning Jan. 1, 2015, all foreign financial institutions (FFIs) that must report to the IRS under the Foreign Account Tax Compliance Act (FATCA) must have a global intermediary identification number (GIIN), according to an alert from Akin Gump Strauss Hauer & Feld LLP. As part of the U.S. Treasury Department’s transitional relief for introducing the international tax law, certain FFIs were not required to obtain a GIIN until the upcoming deadline.

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  • Use TIN masking to avoid identity theft liability

    TIN masking helps employers protect their payees' private information.

    In July, the IRS released final regulations for using truncated tax information numbers (TTINs) on information returns. The use of TTINs is a step toward curbing identity theft, and employers that do not take advantage of TIN masking could be held liable if a worker’s tax documents are stolen.

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