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RECENT NEWS AND TAX GUIDANCE
Tax law changes proposed Feb 2010 by the Administration, the Green Book issued by
Treasury Department in relation to the proposed fiscal 2011 federal budget

FBAR rules: RIN 1506-AB08 proposed regulatory amendments for Foreign Bank
Account Reporting; Notice 20 1 0-23 limited relief for FBAR filing; Announcement
2010-16 continued filing suspension for non-U.S. persons

Notice 2010-15, guidance on applying provisions of the HEART Act affecting qualified
plan benefits or differential wage payments to members of the military (Jan 20, 2010)

Rev. Proc. 2009-54, new standard mileage rates for 2010. The business rate is 50
cents per mile. (December 3, 2009)

IRS FILING AND RECIPIENT STATEMENTS
Announcement 2009-70, Five important changes to the Pub 1220 specifications,
including clarification that "incorrect payee address" does not require filing a corrected
1099 with the IRS (October 9, 2009)
Pub 1220, Rev. Proc. 2009-30 , IRS electronic filing specifications for TY 2009 filing

Notice 2010-9, types of Form 1099 reporting that can use the February 16, 2010,
deadline for furnishing 1099 statements to payees (December 18, 2009)

Notice 2009-93, permits the use of just the last 4 numbers of a SSN or ITIN on a Form
1099 series, 1098 series or 5498 series paper statement furnished to the payee. This
had been requested as an anti-identity-theft measure. Effective for TY2009 and 2010
payee statements; does not apply to EINs; does not apply to payee statements
furnished electronically. (November 19, 2009)

Publication 1187 for Tax Year 2009 reporting, specifications for electronic filing of
Forms 1042-S with the IRS (September 30, 2009)

FINANCIAL INDUSTRY
Cokala notes on fiscal 2011 Green Book proposals affecting international transactions

2009 OID Tables, final release version of Pub 1212, available as a pdf or through a link
to a text file. (January 13, 2009)

Notice 2010-4, WHMT and WHFIT clarifications and transition rules (December 18,
2009)

REG-101896-09, Proposed regulations for cost basis reporting by securities brokers,
and basis determination for stock (December 17, 2009) and draft of Form 1099-B for
2011

RETIREMENT PLANS AND IRAS
PLR 201009012, Canada treaty rate for withholding from RMD on IRA (March 5, 2010)
Form W-4P for 2010, Withholding Certificate for Pension or Annuity Payments. This is
now a form that can be filled in on-screen and printed. (December 9, 2009)

PURCHASING CARDS AND OTHER CREDIT CARDS
REG-139255-08, proposed regulations for the new Form 1099-K reporting by payment
card settlement companies and 3-party network transaction processors, under new Sec.
6050W of the tax code, effective beginning with payments made in 2011. Offers
regulatory relief for organizations that currently have a 1099 reporting obligation for
payments made through company P-cards in the typical Accounts Payable situation, but
creates reporting obligations for some shared services organizations. (November 23,
2009)

New Section 6050W of Internal Revenue Code - reporting by payment card settlement
organizations and third-party network transaction settlement organizations

TAX LEGISLATION
Foreign Account Tax Compliance Act (FATCA) in its most recent iteration February 23,
2010, as part of H.R. 2847 passed by the Senate; see Technical Explanation beginning
on page 22

GENERAL NEWS AFFECTING 1099 REPORTING
Rev. Proc. 2009-47, "Per Diem" rates allowable as substantiated business travel
expenses within the continental U.S., effective October 1 (October 1, 2009)

Expansion of information reporting to include corporations and payments for property;
legislative text included in healthcare reform legislation currently in Congress

IRPAC letter to IRS on disruption of Second B-Notice procedure due to withdrawal of
Form SSA-7028 by the Social Security Administration

REG-158747-06 Proposed regulations for mandatory 3% tax withholding and Form
1099 reporting by federal, state and local governments on payments for services and
property (except for real property) (Dec 2008)

COURT CASES
Container Corp. v. Commissioner, 134 T.C. No. 5 (February 17, 2010) - guaranty fee
for debt was analogous to a service, so income sourced where the service was
performed

TAX TREATY CHANGES
C hile, tax treaty signed February 2010 but not yet ratified (not yet in effect)
Hungary, tax treaty signed February 2010 but not yet ratified (not yet in effect)

February 15 2010 eBulletin
November 9 2009 eBulletin