Reporting & withholding developments

The IRS has issued - in either proposed or final form - significant tax-reporting guidance during 2002 that will require banks to make changes to account documentation and revise systems and procedures. Recent developments that will have an impact on financial institutions include the revision of Fo...

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Bibliographic Details
Published in:ABA Bank Compliance 2002-11, Vol.23 (11), p.19
Main Author: Riedlinger, Cheryl
Format: Article
Language:English
Subjects:
Attorneys
Bank compliance
Calendars
Education expenses
Financial institutions
Fines & penalties
Higher education
Information returns
Student loans
Tax planning
Tax regulations
Withholding taxes
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Summary:The IRS has issued - in either proposed or final form - significant tax-reporting guidance during 2002 that will require banks to make changes to account documentation and revise systems and procedures. Recent developments that will have an impact on financial institutions include the revision of Form W-9 and issuance of regulations T.D. 8987. Form W-9, Request for Taxpayer Identification Number and Certification, and the W-9 Requestor's Instructions reflect the lower backup withholding rate of 30% that applies for 2002 and 2003 and indicate that a bank with an electronic system may receive Form W-9 electronically from a customer's investment advisor. T.D. 8987 simplifies the calculation of required minimum distributions from IRAs and qualified plans. In addition, the IRS has released additional proposed regulations for reporting payments to attorneys under Internal Revenue Code 6045(f). Developments concerning student loan interest reporting, 2002 backup withholding and penalty notices, middleman regulations and reporting for nonresident aliens are discussed.
ISSN:0887-0187
1930-3963