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RECENT NEWS AND TAX GUIDANCE
Rev. Proc. 2010-26, the first release of IRS electronic filing specifications and
instructions for 2010 reporting (will be republished later as Pub. 1220) (July 22, 2010)

Notice 2010-51 IRS requests comments by September 29 on what should be in the new
regulations that must be written for expansion of Form 1099 reporting under the recent
amendments to Sec. 6041 of the Internal Revenue Code (payments to corporations,
payments for property, payments of gross proceeds) (July 1, 2010)

Announcement 2010-41 New procedure permits use of a Social Security Number
Printout as verification sufficient to avoid or stop backup withholding that was imposed
following a Second B Notice under IRC Sec. 3406 (June 2, 2010)

H.R. 4213 extensions of expired tax law provisions, and additional new tax law, passed
by House of Representatives May 28, 2010, list of extender provisions; technical
explanation of tax/revenue provisions

Rev. Proc. 2010-22, Health Savings Account limitation amounts for 2011 (May 25, 2010)

Notice 2010-46, new rules and 1042/1042-S requirements for dividend equivalent
payments, under FATCA tax law amendment (May 21, 2010)

Notice 2010-38, guidance on excluding medical coverage or reimbursement cost from
the taxable income of employees, for coverage of children until age 26 under the
requirements of the new Patient Protection and Affordable Care Act. (April 27, 2010)

Expansion of information reporting (Form 1099-MISC) Public Law 111-148. Makes
corporations reportable (except tax-exempt corporations) and makes payments for
property (goods) reportable, beginning 2012. (March 23, 2010)

Form W-11, affidavit of qualified employee under the HIRE Act (April 7, 2010)

Increases in information return penalties - part of bills in Congress, has not yet been
enacted as law (March 18, 2010)

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

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 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
FinCEN Final Rule RIN 1506-AA93 defining mutual funds within the definition of
"financial institution" for Bank Secrecy Act; Currency Transaction Reports required;
subject to the recordkeeping and travel rules (April 14, 2010)

Notice 2010-28, Stripping Transactions for Qualified Tax Credit Bonds, including
information reporting requirements, effective March 23, 2010

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)

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 2010-4, 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

FOREIGN PAYEES
Foreign Account Tax Compliance Act (FATCA) included in Public Law 111-147; see
Technical Explanation beginning on page 22

CCA 201027046, services performed by nonresident aliens on the Outer Continental
Shelf

Permanent Resident card (green card) sample of the new format for cards

RETIREMENT PLANS AND IRAS
Letter Rulings granting waivers of 60-day rollover rule after errors by financial
institution/adviser. LTR 201013073, LTR 201013067 (released April 2010)

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)

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

GENERAL NEWS AFFECTING 1099 REPORTING
Rev. Proc. 2010-16 IRS definition of "last known address" (April 16, 2010)

IRS Publication 1542, "Per Diem" rates allowable as substantiated business travel
expenses within the continental U.S., effective October 1 with April 2010 update

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
New Zealand, new Protocol (amendment) approved by Senate July 2010 (not yet in
effect)
Malta, tax treaty approved by Senate July 2010 (not yet in effect)
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)