Tag Archives: withholding

IRS Trust Fund Penalty Enforcement Heats Up

Much to the surprise of many business owners and those involved in financial operations, the IRS will hold responsible individuals personally liable for employee withholding taxes not turned over to the government.  The entity — be it a corporation, limited liability company, or limited partnership — does not offer any protection against personal liability for […]

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Employment Tax Withholding and Payroll Reporting for U.S. Expatriate Employees Working in Foreign Countries

With increasing globalization and the expansion of cross-border business activities, U.S. employees are often relocating to work in foreign countries.  U.S. expatriate employees typically may work in a foreign country for a U.S. company or for a foreign subsidiary company or foreign affiliate of the U.S. employer.  There are certain U.S. federal tax considerations that […]

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Caution: More than One Type of U.S. Federal Tax Withholding Could Be Required for Foreign Partners in a U.S. Partnership

It is very important for a U.S. partnership to determine the residence status of all partners in the partnership. A U.S. partnership is required to report whether a partner is a foreign partner on the Schedule K-1 filed with the Form 1065 federal partnership tax return. A partner is considered to be a foreign partner […]

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Caution: FIRPTA Withholding Exemption Certificates—Mirage or Oasis?

The Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”) requires foreign persons who sell U.S. real property (or certain U.S. real property interests) to pay a 10% U.S. withholding tax on the gross sale proceeds. If the foreign person’s final U.S. tax liability on the gain from the sale of the U.S. real […]

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Pennsylvania Enacts Job Creation Incentive, but Beware of the Clawback

Pennsylvania has enacted a new job creation law allowing qualified companies to retain 95% of the withholding taxes for the individuals employed in the newly created jobs. The Promoting Employment Across Pennsylvania Act (L. 2012, H2626, effective 10/26/2012), which was signed into law by Governor Tom Corbett on October 26, 2012, offers the 95% retention […]

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