February 2024: Keeping a Clean Vendor Master File

This Month’s Quick Take:

From the IOFM 2023 Master Guide to Form 1042-S Compliance:

“Obtaining and becoming familiar with the per se list in Reg. §301.7701-2(b)(8)(i) are important tasks for those charged with monitoring vendor status … the list is used by IRS auditors to locate foreign vendors that you might have overlooked in your master files in the course of ongoing audits. U.S. branches of these entities carry U.S. addresses and sometimes escape foreign identification in your system. They are still foreign companies and require W-8 documentation.”

IOFM members can access the entire Master Guide here to learn more. 

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Answering VMF Questions Consistently

It’s important that all team members who respond to VMF inquiries be able to provide consistent responses. Vendor master file expert Debra R. Richardson offers her take on creating an FAQ document to ensure everybody is working with the same information.

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When a Supplier Is Acquired

What’s the best practice when a supplier is acquired by another company with a different tax ID? Should a new vendor be created within the vendor master file? Or if still buying the same items from them, is it preferable to just update the tax ID number?

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MEMBER WEBINAR: Form 1042-S Pre-Filing Checklist: Steps for Accurate Reporting and Penalty Avoidance

Join IOFM and Cokala on February 22nd to learn how to identify Form 1042-S reportable payees and reportable information, and balance your 1042-S form information with IRS Form 1042.

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Setting Up Non-U.S. Vendors

In IOFM’s new series “Non-U.S. Vendor Setup,” we discuss how to enter foreign vendors, but first you must know how to identify them. Since the data collection process is different for these suppliers, it’s important to recognize the clues to be able to locate them.

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FREE WEBINAR: 7 Steps to ReDesign Your Vendor Process to Avoid Fraud, Fines and Bad Vendor Data

Are you still relying on email for vendor documentation setup and updates? If so, say goodbye to potential fraud, fines, and data discrepancies. Join IOFM and Debra Richardson on February 12th for an insightful session on refining your vendor setup and maintenance process.

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