Webinar

2012 IRS Information Reporting – Part 2

New regulations require banks to report interest paid to nonresident aliens. With penalties now $100 for failure to comply with IRS information reporting requirements, banks are at risk of higher penalty assessments.

New regulations require banks to report interest paid to nonresident aliens. With penalties now $100 for failure to comply with IRS information reporting requirements, banks are at risk of higher penalty assessments. To avoid penalties financial institutions must know how the IRS Information Return Program works, evaluate procedures for creating relationships with customers and vendors, integrate changes for 2012 and lay the groundwork for a “Reasonable Cause” defense. In light of the new nonresident alien filing requirements, a review of W-8BEN policies and procedures is also in order!

This series provides the information needed to develop a successful IRS compliance program and avoid penalties. It will also help banks respond to B-notices, understand reporting requirements for specific types of returns and prepare an adequate defense if penalties are assessed.

Highlights

Deposit Related Returns, New Non resident Alien Reporting Requirements, Backup Withholding (B & C Notices) & Common Mistakes in TIN Matching Procedures

Part II is devoted to the deposit side. (Reporting by fiduciaries or payors of investment interest are not covered.) Common errors are addressed along with nonresident alien requirements (including tips for obtaining and maintaining the Form W-8 BEN) and reporting interest upon the death of a customer. The IRS backup withholding program is explained in detail. Learn what is required when the institution receives a B- or C-Notice and how documentation is essential to your overall IRS compliance program.

Participants learn when filing is required to report the payment of interest, contributions and rollovers to and distributions from IRAs. (Other uses of Forms 1099-R and 5498 are not discussed.) Changes for tax year 2012 are highlighted as part of the review of forms:

  • 1099-INT (Interest Income),
  • 1099-OID (Original Issue Discount),
  • 1099-R (Distributions from Pensions, Annuities�),
  • 5498 (IRA Contribution Information),
  • 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding).

A brief review of Form 1099-MISC is included. A full analysis is provided in Part I.

Audience

Those with responsibility for maintaining or auditing a financial institution’s information reporting compliance program. The program is presented at a basic to intermediate level.

Speaker

Laura Wilson is a principal with Pegasus Educational Services, LLC. Audiences routinely comment on her unique recollection of material and sense of humor. At one time she served as compliance trainer for a $3 billion savings bank. Later, she was a senior consultant/trainer for a consulting firm for financial institutions. She has also taught at compliance schools sponsored by the OTS and the FDIC.

Credit Information

2.0 total credits

Pricing

Member price: $250.00 | Non member price $500.00

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