Posts by Brenda Chase3

Richard Howard55 said:Okay, this is where I’m stuck. You're just citing the exemption code (41.1.a) without mentioning the transfer of tax liability. The buyer pays the tax back home regardless.

There’s some distinction there somewhere, but... ugh. I just can't seem to wrap my head around it properly.

I'm assuming we're talking about two registered business entities within the federal database, even though I didn't explicitly state that.🙂

Hang on, Richard, I found it. 🙂 This Law is a nightmare—you literally have to read it from start to finish, every single article, because one thing is stated in the text while the explanation says something completely different. Good luck navigating that. For instance, under Section 79, Subsection 7, it states that if the recipient is the one liable for the VAT on goods or services, the supplier must note "transfer of tax liabilities" or "reverse charge" on the invoice. Honestly, the more I dig into this, the more confused I get.🙂

Richard Howard55 said:Keep going, please, but let's swap the service for physical goods. What would the invoice look like then? 🙂

On the invoice, we write: "Tax-exempt under Section 41(1)(a) of the Tax Code."
The responsibility for calculating the sales tax falls on the buyer (the recipient) within their own state. However, this only applies if we have exchanged our respective tax identification numbers.
For the delivery of goods, you need to fill out the specific section for out-of-state shipments on the sales tax return, along with the aggregate report for outbound goods and services.

If we don't have their tax ID on file, the shipment is taxable here, and it gets categorized under taxable sales on the tax return.

When dealing with physical goods, things get a bit more nuanced with plenty of fine print, so I can't really give a blanket rule; it’s better to look at specific case studies.

Patrick Peterson49 said:So, what happens when you're providing services to someone outside the European Union—like over in the States?... wondering how that works...
Does this follow the standard American sales tax rules, or is it handled like those transactions with the European Union?...

It’s essentially the same principle. The place of taxation is determined by the location of the tax resident receiving the services. The service provider needs to maintain proof that the recipient is indeed a registered tax entity in their own country. In other words, if we are dealing with a client outside the European Union, they need to provide us with documentation proving they are registered as a taxpayer locally. Up until now, there wasn't a strict requirement for the recipient to provide proof of their status, but moving forward, to properly apply the tax liability transfer to a non-European Union taxpayer, you have to obtain a certificate from the tax authority in the country where the user is registered. Now, the tricky part is what that specific certificate actually looks like and where one can even acquire it; I managed to find that this is regulated under Articles 17 and 18 of the European Union Council Implementing Regulation No. 282/2011, but I haven't been able to track down an actual sample.

The value of supplies made to a taxpayer outside the European Union should be reported solely in the VAT return under the section for "Supplies outside the European Union."

Drew Rogers6 said:If anyone knows...

What's the full rundown when we buy goods from the European Union? Up until now, my freight forwarder handled all that import stuff, but now it looks like I'm flying solo—so I guess I have to calculate the value of the goods myself and then tack on the sales tax. I assume I just list it on the tax return as both an obligation and an input credit, so there’s no actual cash out the door for it. I'm wondering what else is on the checklist—like, do I include the shipping costs up to the border in the base value? It feels redundant since there isn't even a customs duty anymore🙄. Also, which specific forms am I supposed to fill out and file...?

I did find out that we don't have to file Intrastat reports because our turnover stayed under $566667, and apparently they notify you themselves once you actually hit the threshold. Honestly, the lady at the Intrastat helpdesk for the IRS was actually super helpful and sweet for once. 🙂

You hit the nail on the head. You’re looking at the VAT return to handle both the output tax and the input credit, but you also have to file the specific report for acquisitions of goods and services from outside the US. When it comes to determining the tax base for those acquisitions, the calculation follows the exact same logic used for domestic sales under the standard tax code. In my view, that means you have to factor in everything—shipping costs, various fees, subsidies, and so on—to get that final number. That said, I’d love to hear if anyone else can weigh in and confirm that’s the right way to approach it.

Richard Howard55 said:When exactly should you put "transfer of tax liability" on a receipt?
I always assumed it happened whenever the VAT obligation shifts to the buyer, including those exemptions under Article 41 and beyond... but apparently, I was wrong. Someone at a seminar mentioned that's not how it works.
So, what's the actual rule? 😕

When you provide a service to a taxpayer who isn't based here in the States, that service isn't taxed domestically because the service is considered to take place where the recipient is located (for instance, over in Vienna), and that is when the tax liability transfer occurs via the reverse charge mechanism. To verify that a client in another country is acting as a registered taxpayer, the American service provider needs to have that client's specific VAT identification number on file. That is when you include the "tax liability transfer" or "reverse charge" clause on the invoice. This transfer simplifies the whole process by allowing the service provider to avoid having to register as a tax entity in the foreign country where the service was performed. If the provider fails to obtain a valid tax ID, the transaction is treated as being provided to a final consumer, which means the service becomes subject to taxation right here in America.
Man, there is certainly a lot to wrap your head around here. I am just thankful to Bog for this forum so we can bounce these ideas off each other and clear things up. 🙂

ruggednomad5 said:Hi

The company just received an EIN from Customs—basically the US tax ID and business number... Is that actually the VAT identification number, or do we still need to file a formal request?
Thanks 😁

Yes, that is indeed the correct number. Companies that already have an established history of international trade will typically find their VAT identification number automatically, whereas those just starting to deal with partners outside the US will need to submit a formal application.

Raymond Martinez10 said:If you ask me, it should be based on whatever activity actually brings in the most revenue.
When someone starts a company, they usually have one specific vision in mind for their primary industry—but then reality hits, and life takes them in a completely different direction.

You make a great point, Vlado3. I was actually just looking at some documentation from the IRS, and it notes: "Per Section 3, Paragraph 4, both legal entities and individuals may calculate and pay dues based on the rate prescribed for the primary activity—specifically, the activity conducted at a higher volume relative to any other activities listed in their commercial registry. Since current law no longer allows for paying tourism dues based on an average rate, taxpayers must apply a single rate corresponding to their predominant business activity."

So, Vlado3 corrected me right on the money (my apologies for the misinformation!), though I did get the part about using a single consolidated rate rather than multiple different rates correct.

Ethan Mitchell4 said:I have a question regarding the City Hall form

Basically, I’m dealing with multiple income streams, which means I have several different tax percentages to calculate. Does anyone know how to handle this through the IRS e-file system?

Last year, I just mailed the form directly to my agent because I was in the exact same situation. It took them until this year to actually process it—and even then, only after I had to call them out for the fact that the credit wasn't showing up on my statement. I’d really like to avoid that headache this time around.

I tried emailing the IRS, but I haven't heard back from anyone.

The calculation rate is determined by your primary business activity—specifically, the one listed on your classification notice from the U.S. Census Bureau. Essentially, the form doesn't give you the option to apply different rates to various activities (since many businesses operate under multiple categories within a single entity); instead, everything is calculated based on the main activity you declared when you first registered your company.

Christian Cruz41 said:Has anyone actually submitted their balance sheets or income statements through the IRS portal yet?
I heard from an official at the IRS that it’s possible, though I'm having a hard time locating the specific forms...

It’s definitely doable. Just keep in mind that you won't find their specific templates there; instead, you need to convert your own documents into PDF format and upload them as attachments once you've finished filing your tax return.

fadedmoose4 said:Seriously, go double-check which browser you're even running. You might be stuck on some ancient version that belongs in a museum. The IRS and Regos aren't even the same deal—they're totally different sites and they don't work the same way at all. Personally, I was always fighting with Regos back in the day, like three years ago when everything was just starting out.

I'm still rocking Internet Explorer 9 myself.
If you aren't using it, maybe try installing it. http://www.microsoft.com/en-us/downl...ernet+explorer

Thanks, fadedmoose4, I'll give that a shot too. Everything was working perfectly fine until today—no major issues at all—but now, suddenly, this Mexico site is acting up. I've been using Regos for two years without a hitch, but today it’s just being difficult. 🙂Anyway, I'll try your suggestion and see where it leads. 😉

Well, look at that—it started working again without me even touching my Internet Explorer settings. It seems like it might have been an issue on their end, because it felt really strange for the Mexico site to work fine one day and then suddenly have a single function fail on eFina. Or maybe something just unglitched itself on my computer. Since today is the final deadline for anyone who hasn't filed their financial reports, the system might just be bogged down by high traffic; honestly, I can't say for sure. Regardless, thanks for the advice—it’ll definitely come in handy if things get messy later.

fadedmoose4 said:Look, I’m telling you, your issue is almost certainly with Java. Are you even running the latest version? Or maybe you’ve got Java disabled somewhere deep in your Internet Explorer settings.

Or, honestly, you might have just completely missed adding the URL to your trusted sites list in the Internet options.
-Go to trusted sites - then sites - and manually punch in the Regos address.

It seems to me like there's a glitch with Java, though it strikes me as odd because everything else functions perfectly except for submitting my RS forms. The IRS site works fine using that exact same Java setup. I actually use Internet Explorer exclusively for both eFina and the IRS (it's basically my dedicated browser for this stuff), so it feels a bit strange that the IRS is working flawlessly while eFina is being temperamental. I have the Regos address listed under my trusted sites, and Java is definitely enabled—otherwise, I wouldn't be able to submit any forms through the IRS at all. Anyway, I'm going to try reaching out to them; they don't respond to emails and getting someone on the phone is nearly impossible, so...

silverbadger said:I’m currently trying to file an IRS form, but every single time I finish signing it, the system just kicks me right back to the main landing page on Regis. It’s incredibly frustrating because the form doesn't actually get processed, so it never even shows up on my list of submitted documents. I tried reaching out to the finance helpdesk for some assistance, but I can't get anyone on the line since all their phone lines are constantly busy. I did send them an email a few days back, and they were actually pretty quick to call me the very next day asking me to forward over a log from the Java console, but honestly, I haven't heard a peep from them since then...

silverbadger, how did you end up resolving this issue? Did they ever follow up with you? This is exactly what happened to me today. I pull up the IRS form, sign it, everything seems perfectly fine, and then—nothing. It just hangs right at the step where I'm uploading the form, and then a file pops up on my desktop that looks like some error report filled with random symbols. Everything else works fine—I can view previous submissions, check unrelated files, all that stuff—but the actual submission process after signing is completely broken. To be clear, it's an eFina issue (the IRS site itself is working without any problems).

Carol Ward3 said:When we submit our tax returns electronically, we can also include supporting documentation in PDF format.
Now, I was looking through the instructions for submitting attachments via the GFI-POD system at FIFA, and it mentions that these files need to be PDFs generated directly from a program like Word or Excel. Apparently, you aren't supposed to print them out, sign them by hand, and then scan them back into a PDF, since everything relies on an electronic signature.
I suppose I’m wondering if this same rule applies to the attachments sent along with the return itself. So, if I were to create a .doc or .xlsx file specifying the responsible party, save that directly as a PDF, and then apply my electronic signature using my authorization, would that be acceptable?

You hit the nail on the head, Carol Ward3. You just put everything together in a standard PDF without any scanned signatures or extra steps, and then send it off. Regarding the GFI-POD, that’s exactly how we handled our filings last year, and everything went through perfectly fine. As for the IRS portal this year, we submitted all our attachments strictly in PDF format without needing any special manual signatures. It stands to reason that if you have the legal authorization to file the tax forms via the IRS system, you inherently have the authority to submit the accompanying documentation as well.

wiredwolf51 said:Neither my tax software nor my payroll system was working. Talked to a rep at the bank yesterday and figured it out: you gotta wipe your current Java first, then hit this link http://www.oracle.com/technetwork/ja...s-1880261.html.
Make sure you click Accept License Agreement and grab the Windows x86 Offline jre-7u17-windows-i586.exe file.
Also, go into IE, hit tools, internet options, security, and add the payroll site to your trusted sites.
This new version of Java actually supports both systems.
Hope this helps someone.

Gaya, thank you so much. After spending days dealing with constant glitches and fighting with my bank's website, everything is finally working perfectly thanks to your instructions. 😉

So, I just got off the phone with FINA again, and they’re insisting that the Rs-m forms simply cannot be listed or submitted via Java 1.7.; they claim it can only be done through Java 1.6.
The GFI works fine because it’s a more robust module, but the Rs-m isn't cutting it—it seems like while certain functions work over the IRS system on 1.7., others just don't. Honestly, I’m at my wit's end trying to make sense of it all. They mentioned they are working on it at a higher level and coordinating with the IRS, since the IRS set everything up based on Java 1.7., whereas FINA hasn't caught up yet, which is creating this headache for them too. I have no clue who is responsible for what anymore, but I assume they'll eventually get their act together and sync up. Perhaps there is some hidden setting in the configuration if it's working for some people but not for others.

dustyscout8 said:vlado3, I have no idea what you're getting at🙂 because I am seeing the exact same message stating the form "is signed and cannot be edited," and yet absolutely nothing happens. There isn't even a confirmation that it was received or any sign of progress. I actually called their toll-free support line, and the woman on the other end sounded completely frazzled; she basically admitted the application is broken and that it isn't our fault, but rather that their system keeps hanging and half the features simply aren't functioning. So, how are we supposed to submit anything? The old system worked perfectly fine, and there was never an issue with it.

Has ANYONE HERE actually managed to successfully file an ID form using this new, broken software?!

You actually have to download the confirmation manually now; it doesn't just pop up automatically anymore. Once you sign the form and get that message saying it's signed and locked for editing, that's when you actually hit send—there's a specific "Submit" button for that. After you've sent it, go to the "Sent Forms" section, select the one you just filed, and you'll see a little checkmark icon next to it. If you click that, it opens up a menu with the options you might need, including "Download Receipt."
I'm only explaining this in case you weren't sure how to find the proof of submission. But if the entire system is crashing on their end, then please disregard my instructions. 🙂

silverbadger said:So, did you ever hear back from them? What was the verdict from the Treasury?
In my case, Java just crashes right after I sign the form, but before the protocol is even downloaded. I click on Close, restart REGOS, and it just crashes at the exact same spot every single time. The forms are being submitted correctly and everything looks perfect, it's just this annoying Java window that keeps messing me up.
Windows 7 64-bit

Blind, we’ve hit a bit of a snag, but honestly, it isn’t even our fault. The IRS is reporting that they can't run on Java 1.7, yet they're also aware that the systems used for tax filings won't function on 1.6. They’re working on a fix right now, supposedly trying to find a way to make everything compatible with Java 1.7 so the IRS systems finally play nice together. I actually reached out to ask them what we're supposed to do in the meantime—because constantly uninstalling and reinstalling different versions of Java just to satisfy specific modules is becoming a massive headache—and their answer was basically, "there's no other way." They mentioned that some people are managing by using one computer running Java 1.6 for certain tasks and a second computer running Java 1.7 for others. I told them that sounds pretty ridiculous for those of us who only have a single workstation. They claim everyone is aware of the situation and they're working on a solution. For now, my only workaround is to download Java 1.6 whenever I need to use Regos, and then wipe it out to install 1.7 whenever I have to jump onto the IRS site. It's a tedious cycle, but until they get their act together and sync the versions, that's exactly what they told me I'd have to do.
Based on exactly what you described, I run into that specific form in those exact spots. It keeps asking me for a signature, but then the moment I actually try to sign it, I get an error message. That’s the word from the folks over at the IRS.

Is anyone else running into a headache with FINRA because of Java 1.7? Here’s the situation: the IRS website refuses to function unless I have Java 1.7 installed, and when I use that version, everything seems to run smoothly there. However, once I switch to 1.7, FINRA won't process my digital signature on the RS forms, which means I can't submit them. If I roll back to Java 1.6, FINRA works perfectly and everything goes off without a hitch, but then the IRS site just breaks because they strictly require version 1.7.
Has anyone dealt with this specific conflict before, and more importantly, how did you fix it? I've been trying to get a hold of someone at FINRA, but I've been sitting on hold for 20 minutes already. 🙂

Jack Young said:Hey, could you explain that bolded part a bit more? I'm trying to figure out how you got it to work. I've been poking around the IRS website looking at the sales tax forms, and that "Attachments" section is just grayed out for me. It won't let me click anything. I'm not actually filing a year-end return yet—haven't even finished it—but I'm just curious... what do I need to do to get the upload button to actually react?

In order to submit any attachments, you first have to successfully file the Sales Tax return itself. Once the return has been submitted, you head over to the "View Filed Returns" section and select the specific filing you just completed. If you click that little arrow next to it, a menu will pop up with all your options (like open, view, download, etc.). From there, you can select "Attachments," and only then will the system allow you to upload your PDFs and send them off. Essentially, you can't attach anything until the primary form has been officially filed.

silverbadger said:Brenda Chase3
Were those PDF attachments actually signed? I’m asking because last year my caseworker at the IRS refused to accept one of my documents just because it wasn't digitally signed and stamped with an official seal. This weekend, I’m planning to dive into how to properly sign a PDF now that I have my FINA card and Acrobat ready to go. Based on some guides I found on the Adobe website, Acrobat Reader should theoretically allow you to sign things, but I honestly couldn't figure out how to make it work no matter what I tried.
Oh, and one more thing—if the documents are signed using the FINA card, am I correct in thinking I wouldn't even have to pay the public filing fee? That's what I gathered from reading about it over on NotesNet.

Regarding the GFI-POD for FINA, I sent over all those notes, decisions, and other files through my FINA card last year, and they didn't need separate signatures. Once you have authorization, the system treats it as if everything is already signed. It's just like when you submit an RS-m; you're effectively signing off on whatever you send every single time. So, there's no need to go through the extra step of signing individual attachments. Just convert them to PDF and click-click. 🙂 That covers everything regarding FINA and GFI.
As for the IRS... I suspect they won't require it either, though I won't say for certain since this is a relatively new process for them. It seems logical that it shouldn't be necessary. All of my attachments went through the IRS portal without any issues, and nothing was ever flagged or held up because an attachment lacked a specific signature. But we'll just have to wait and see how things play out with the IRS.

The public filing fee is waived for users who submit GFI for public record via E-Fine. Basically, if you're an accounting firm and you have authorization for multiple clients, none of them have to pay anything because you're utilizing E-Fine. The only ones stuck paying are the people physically carrying data to FINA on a CD or a thumb drive.