Best Practices in Accounts Payable Tax Compliance

The IRS is aggressively pursuing withholding agents’ compliance with the 1441 rules, FATCA (Foreign Account Tax Compliance Act) and other regulations, in order to offset offshore tax evasion and recover lost revenue. Key risks include:

• Severe tax penalties levied by the IRS
• FATCA rules make the company paying suppliers responsibly for regulatory compliance
• The penalty can be up to 30 percent of the payment

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