VIEWpoint Issue 2 | 2022
Inflation Reduction Act: Highlights of Key Changes for You and Yo...
2022-2023 Tax Planning Guide
The Internal Service Revenue (IRS) proposed regulations on retirement plan distributions (retirement plans, IRAs and commercial annuities), requiring tax withholding if the recipient does not satisfy U.S. address requirements.
These proposed regulations would remove the option to elect out of federal tax withholding rules if the recipient provides the payer with:
If the recipient provides a military or diplomatic post office address outside of the United States, it will be treated as a U.S. address and they may elect out of withholding rules.
The proposed regulations do not apply to:
These proposed regulations are still being reviewed and payors should continue to rely on prior IRS guidance until the rules are finalized. Once these rules are finalized, the regulations would supersede the guidance in Notice 87-7 for payors of designated distributions with respect to their duty to withhold under sections 3405 (a) (1) or (b)(1). To determine whether you’re currently in compliance or for assistance with navigating these rules, contact Doeren Mayhew’s tax advisors today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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