Most Popular Compliance Content
When to File a 1099-C
04/18/2005
I have some questions regarding the IRS reporting on 1099-C cancellation of debts. 1. Are personal bankruptcy accounts reported if they have been discharged? 2. Are you required to report charged off loan accounts before the statute of limitations (15 years) for collection has expired? 3. If you cancel a debt can you no longer pursue collection of that debt?
Enhanced Due Diligence on a 34 Act Company MSB?
04/18/2005
Per the BSA, an MSB does not include a bank, nor shall it include a person registered with, and regulated by the SEC or the Commodity Futures Trading Commission. Does this mean that I do not have to perform any enhanced due diligence on an MSB that is a 34 Act company? By enhanced due diligence, I mean determining whether the business has procedures to comply with applicable BSA requirements, whether the company has proper controls to monitor for suspicious activity and whether the company has procedures to ensure compliance with OFAC regulations
Rollover IRAs and CIP
04/18/2005
Automatic Rollovers and IRAs - CIP implications. There's a footnote on page 5 of the guidance issued under IRS Notice 2005-5 regarding automatic rollovers. CIP compliance on the IRA seems not to be immediately required at establishment when it is an automatic rollover, and says that institution will not be required to implement its CIP until the former employee first contacts such institution to assert ownership or exercise control over the account. Industry wide - any guidelines on what to do if the "account owner" never asserts ownership or whether within a certain timeframe after account establishment you become responsible to find them to secure CIP requirements? (I don't exactly trust the footnote) I envision accounts established for "lost participants" who I will be hard pressed to fulfill my CIP requirements.
Not-for-Profit vs. Non-Profit
04/18/2005
We are trying to institute difference between not-for-profit accounts (club, association, leagues, groups) and non-profit accounts (churches, boy scouts, girl scouts, etc). How do we differentiate between these two types. Some organizations are filed at the Secretary of State as non-profits and we thought they would fall into our "not-for-profit" account. We would appreciate some help.
Reg. E Error Resolution Notice
04/18/2005
We have the Regulation E Short error resolution notice on the reverse of our statement paper. We do not send an annual notice to our passbook account holders. Passbooks may receive a Direct deposit. Are we required to send a separate annual notice to these customers? Our auditors say we are. I thought passbooks were exempt from the periodic statement requirement and that the short Reg. E notice on the statement could be used in lieu of an annual notice.