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The IRS is heavily focusing its nonresident alien tax regulations compliance audits on accounts payable operations. If your organization outsources work to an overseas contractor, if you bring a foreign contractor in for short-term work, or if you are asked to pay a foreign consultant's invoice, this course will help you to make sense of the regulations surrounding payments to foreign vendors.
Topics Covered
- How to distinguish payments to US and Non-US Persons
- Ways to handle payee request for treaty benefits
- Key elements of the troublesome IRS source-income rule
- Updates on 1042/1042-S reporting regulations
- IRS form updates: How recent laws have changed W-8/1042-S
- How to fulfill reporting obligations via Form 1042, 1042-S
- Avoiding Problematic Reporting & Withholding Issues: How to Ensure Error Free Filing
- Making payments to US & Non-US Persons: Keys to getting it right
- Ways to pin-point the key elements of the IRS source-income rule
- Essential Checklist for Your 1042-S Filing. What to Know Before You Report
- Additional documentation issues of Foreign Status and Treaty Claims
- How to identify troublesome IRS source-income rule
- Ways to break down W-8/1042/1042-S payee & payment reporting situations
- Avoiding penalties: Best practices for best results
Learning Objectives
- Recognize how to distinguish a 1042-S reportable non-resident alien payee from a 1099 reportable resident alien or U.S. citizen payee
- Recognize how to handle visas, green cards, and using the IRS substantial presence
- Describe why where the services performed, and why is so important to determine your 1042-S reporting responsibilities
- Recognize how to use the Forms W-8 and 8233 to validate payee claims for treaty benefits
- Identify how to address rules for 1042-S tax withholding and how to report it
- Discover how to translate W-8 provided information to 1042-S reporting
Level
Basic
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Steven D. Mercatante
Steven Mercatante is the principal and founder of TIR Consulting, LLC. He is a nationally recognized leader in tax reporting education and consulting on specialized compliance issues. He has conducted on-site consultation for corporate clients from across the world and led countless seminars and webinars for Convey Compliance Systems, IAPP, Balance Consulting, The Accounts Payable Network, Accounts Payable Now and Tomorrow, Progressive Business Conferences, The Center for Competitive Management, and more.
He is also a published author, with numerous articles published on tax and financial law, and he has authored and published a series of tax guides on topics such as: W-9/1099 & W-8/1042-S compliance and reporting, payment cards, U.S. State & Local Reporting, worker compensation issues, international tax compliance, and more.