On July 23, the BIR announced the availability on its website of BIR Forms 1604-F and 1604-C, as well as the availability of the revised BIR Form 1604-E (annual
information return of creditable income taxes withheld (expanded)/income payments exempt from withholding tax), through Revenue Memorandum Circular (RMC) No.
In recent years, the authors have seen more frequently that, in addition to needing more time to file an income tax return, a taxpayer may not have enough information to file a complete and accurate international
information return. Filing an extension can allow more time to file such
information returns.
Therefore, when advising someone who has not filed an international
information return, it is critical for CPAs to document the taxpayer's efforts to understand and comply with the IRC's requirements.
Due date modifications: The act sets new due dates for partnership and C corporation returns, as well as for Fin-CEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), and several other IRS
information returns.
Also the CRA can suspend the tax-receipting privileges of a charity that provides inaccurate or incomplete information in its annual
information return until the charity provides the required information.
(149) Section 6201(d) provides that when a taxpayer challenges a deficiency based solely on third party
information returns, the Service "shall have the burden of producing reasonable and probative information concerning such deficiency in addition to such
information return." Congress put this section in the Code only after the Service refused to follow circuit court decisions coming to similar conclusions.
IRS matches
information returns with taxpayers' income tax returns to see if taxpayers have filed returns and reported all their income.
c) if it has filed an
information return in a preceding fiscal year.
Since the payor here does not know the amount of the attorney's fee, the payor must file an
information return with respect to the attorney but need not file a return with respect to the plaintiff.
Further clarity is given to reporting requirements on who must report, when reporting must be done, how to report, the types of loans subject to reporting and which borrowers must receive an
information return.
For example, Congress has imposed steep penalties for the failure to timely file or substantially complete certain international
information returns, such as Form 5471,
Information Return of U.S.
Other provisions of Notice 200813 provide that the preparer of an
information return listed in Exhibit 2 of the notice (or other document, such as a depreciation schedule or cost, expense or income allocation study) will be considered a preparer of a tax return if entries in the
information return or other document constitute a substantial portion of that tax return.
This article explores the policy implications associated with
information return expansion.
