IRS Issues Updated Withholding Foreign Partnerships and Withholding Foreign Trusts Agreement

Revenue Procedure 2017-21 updates the agreements entered into by withholding foreign partnerships (WPs) and withholding foreign trusts (WTs), as provided in Revenue Procedure 2014-47.  These agreements were to expire on December 31, 2016, but were extended in Revenue Procedure 2017-15 in anticipation of the new agreements being issued in January 2017.  This revenue procedure will apply to WP and WT agreements effective on or after the date of issuance of this revenue procedure.  The WP and WT agreements are updated consistent with recently published guidance, including the qualified intermediary withholding agreement, which was published in Revenue Procedure 2017-15.  The revenue procedure also provides information on submitting an application or request for renewal of a WP or WT agreement. This guidance affects WPs and WTs that currently have a WP or WT agreement with the IRS and WPs or WTs that intend to enter into a WP or WT agreement with the IRS in the future.

Revenue Procedure 2017-21 will be in IRB 2017-06, dated February 6, 2017.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

IRS Urges Taxpayers to Check Their Withholding

The Internal Revenue Service today encouraged taxpayers to consider a mid-year tax withholding checkup following several new factors that could affect their refunds in 2017.  Taking a closer look at the taxes being withheld can help ensure the right amount is withheld, either for tax refund purposes or to avoid an unexpected tax bill next year.

The withholding review takes on even more importance this year given a new tax law change that requires the IRS to hold refunds a few weeks for some early filers in 2017 claiming the Earned Income Tax Credit and the Additional Child Tax Credit. In addition, the IRS and state tax administrators continue to strengthen identity theft and refund fraud protections, which means some tax returns could again face additional review time next year to protect against fraud.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999