Caution: Nonresident Foreign Individuals Must Comply with New IRS Documentation Requirements when Filing a Form W-7 U.S. TIN Application
Depending on a foreign individual’s inbound activities in the United States, the person could be required to obtain a U.S. Taxpayer Identification Number (TIN) if the person is not eligible to obtain a U.S. Social Security Number (SSN). Foreign individuals who are required to obtain a U.S. Taxpayer Identification Number must file a Form W-7 with the Internal Revenue Service (IRS).
A U.S. TIN generally is required if a nonresident foreign individual is required to file a U.S. federal tax return on the Form 1040-NR. A nonresident foreign individual generally must file a Form 1040-NR if the person has income that is effectively connected with a U.S. trade or business. A nonresident foreign individual who has ordinary trade or business income from a U.S. partnership generally is considered to have effectively connected income that must be reported on a Form 1040-NR.
A U.S. TIN also could be required if Continue reading »
UPDATE 4/24/13: GSA has announced that all spots for the OASIS Industry Day sessions are now full. As a continued testament to the significant amount of interest in this procurement, all spaces for the OASIS and OASIS SB sessions were filled in approximately five days. The OASIS Program Office will be posting a recording of the event for those who were unable to participate. FedPoint will post a link to any live streaming or video access as soon as it is made available.
The highly-anticipated draft solicitations for OASIS and OASIS SB, new government-wide IDIQ contracts for complex integrated professional services, were finally released on March 28th via FedBizOpps. Knowing that prospective bidders would likely have many questions after pouring through the 100+ pages of information, the OASIS Program Office is hosting or attending a number of events over the next month as part of its continued outreach to industry. First and foremost, there will be an OASIS Industry Day Continue reading »
Current agency-by-agency effects of sequestration are:
Agriculture Department: Agriculture Department will not need to furlough food safety inspectors, due to the continuing resolution signed March 26.
Air Force: The Washington Post reported that employees in combat zones, non-appropriated funds employees, and foreign nationals would be excepted from furloughs. The Post also said that further exceptions would be allowed for “safety of life or property.” An Air Force spokeswoman told Government Executive that all Air Force civilian police, security guards and firefighters would be subject to furlough “except at installations where the manning level is under 25 percent.” Continue reading »
The growth of email has battered the U. S. Postal Service financially but that doesn’t mean USPS is a slouch when it comes to modern technology, Nextgov’s team of private sector app reviewers said.
The Postal Service’s mobile app allows users to find the nearest mailbox or post office, track packages by scanning a barcode and look up ZIP codes. Our reviewers gave the app high marks, noting that the information made sense in a mobile context and the app wasn’t bogged down by software bugs as government apps frequently are.
DCAA has made it clear to Congress that one of their top priorities will be addressing the extensive backlog of Incurred Cost Submissions (ICS). This news further emphasizes how important it is for government contractors to stay on top of DCAA requirements.
For example, are you aware that DCAA has a newly updated submission? Do you know if you have a requirement to file an Incurred Cost Submission? Do you understand the DCAA Adequacy Checklist? If you answered “no” to any of these questions, join Aronson LLC’s government contracting experts on May 1st for an informative webinar where we will guide you through deciding if an Incurred Cost Submission is required, what is involved to prepare an adequate Incurred Cost Submission, and how best to prepare for an uncomplicated audit.
Topics will include: Continue reading »
The Department of Veterans Affairs (VA) reminded readers of a special sequestration exclusion in their March 2013 eNewsletter. A special rule exempts all programs administered by VA (including VA Medical Care) from sequestration (but not federal pay or “federal administrative expenses”). Due to this exemption, VA programs such as the Federal Supply Schedule (FSS) Service will not be impacted by budget cuts. Other government agencies are not so lucky. Unless exempt or subject to special rules, 2013 sequestration reductions are uniform by category for accounts and “programs, projects and activities” within accounts. In 2013, the budget sequester will enact $85.4 billion in cuts with a total of $109 billion in cuts through FY2021.
The VA FSS Program supports the healthcare requirements of the VA and other federal government agencies (OGA) under delegation from GSA. VA explains that the exemption is a direct result of the importance Continue reading »
Caution: More than One Type of U.S. Federal Tax Withholding Could Be Required for Foreign Partners in a U.S. Partnership
It is very important for a U.S. partnership to determine the residence status of all partners in the partnership. A U.S. partnership is required to report whether a partner is a foreign partner on the Schedule K-1 filed with the Form 1065 federal partnership tax return. A partner is considered to be a foreign partner if the partner is a foreign company formed under the laws of a foreign country. A partner is considered to be a foreign partner if the partner is a foreign individual who is not a U.S. citizen, does not hold a U.S. green card or does not meet the substantial presence test to be treated as a U.S. resident for U.S. federal tax purposes. The U.S. partnership is also required to comply with Continue reading »
Results of the widely known and anticipated 18th Annual Grant Thornton Government Contractor Survey were recently released, offering both surprising and presumably expected insights. Julian Rosenberg, government contract advisory leader at Grant Thornton reported some noteworthy takeaways from the survey in the areas of cost accounting, company relationships with the DCAA, revenue, profit, win rates as well as indirect cost rates. Highlights from the survey also supplied interesting information on M&A activity.
Fringe Benefits are Increasing
In a time of fierce competition within the government contracting industry, accounting practices related to indirect costs and direct labor can be critical factors. According to the survey, Continue reading »
The latest round of cost cutting initiatives highlights the government contracting community’s attempt to adapt to the new budgetary environment. Stagnant or declining revenue growth and margin pressure are the new norm, so contractors are analyzing their overhead and SG&A infrastructure to accommodate a lower revenue base and profitability level. Aronson Capital Partners’ monthly Defense Technology & Government Services Market Update reviews the recent restructuring of publicly traded contractors and features additional articles covering:
- S Corporations: Choosing the Right Transaction Structure
- March M&A Activity
- Recent Industry M&A Transactions
Wednesday, April 24, 7:00am – 10:00am at the Tower Club, Tysons Corner 8000 Towers Crescent Drive, Vienna, VA 22182
In this time of austerity and economic uncertainty, joint ventures have become an effective tool that federal contractors are using to leverage more resources, greater capacity, increased technical expertise and access to established markets and distribution channels.
This panel will discuss: Continue reading »
What We Are Writing
- A Marriage of Inconvenience: GSA Schedule Contracts & The Contractor Code of Business Ethics & Conduct Clause
- Emerging Small Businesses: To Grow Your Business, You Must Plan For Growth
- Government Contracting: Look Before You Leap!
- GSA Schedules – Strategies for Success
- New Employee vs. Independent Contractor Considerations
- Pay on Display – Understanding the Executive Compensation and Subcontractor Data Reporting Requirements & Ramifications
- The GSA Schedule: Your Ticket to the Federal Market (May 2010)
- The New FAR Codes of Conduct and Compliance Program Provisions
- The Seven Deadly Sins (of contract compliance)