Nonresident Alien Reporting: IRS Compliance (Completed)

Date: Tuesday, November 12, 2019
Instructor: Miles Hutchinson
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

How do you know whether you can accept a W-9 from someone or you must request a W-8 instead? What if you send them a 1099 when you should have sent them a 1042-S. How will you deal with the IRS demand for the backup withholding you failed to deduct from the Nonresident Alien’s (NRA’s) payments? The IRS is working hard to reduce the delinquent tax burden. They know we are becoming relatively compliant with our 1099 reporting, but they also know we are far less sure of ourselves when it comes to identifying and performing backup withholding on our NRA’s. Collecting the tax due from NRAs working in the U.S. is a Tier 1 audit issue. This tax burden is minimized when companies making payments to NRAs for dependent and independent personal services properly withhold on these payments.

Join expert, Miles Hutchinson, CGMA, to obtain the best tools available to identify your Nonresident Alien payees (NRA’s) and bring your company into compliance with the 30% backup withholding requirements on dollar one. In just 90 minutes, you can begin to develop a solid plan to move your company toward near absolute regulatory compliance, efficiency improvements, standardized processes, & adequate documentation to ensure your NRA’s are properly handled according to IRS and tax treaty regulations. You will learn how to obtain the treaties and confirm exemption claims made by your NRA’s with the IRS.

Who Should Attend
Information Reporting Officers, Tax Managers, Compliance Officers, Compliance Managers, CFOs, Controllers, Accounting Managers, Bank Managers, Auditors, IT Managers, and Risk Managers.

Topics Covered

  • How to determine whether Nonresident Aliens are working for you
  • How to determine which W-8 to provide to the NRA
  • How an NRA individual must support their claim of exemption from withholding
  • The rules for evaluating forms provided by your NRA to determine reliability and their impact on your withholding requirements
  • The best way to handle questions from NRAs who do not understand your requests or the forms
  • How to access tax treaties and learn how to use it to confirm a claim of exemption from or reduced rate of backup withholding
  • Examine a tax treaty and learn how to use it to confirm a claim of exemption from or reduced rate of backup withholding
  • Discover how to make your backup withholding deposits timely and keep the IRS from confusing them with your payroll tax withholding deposits
  • Study the 1042-S, related forms for filing, and reporting backup withholding on the Annual Withholding Tax Return
  • Avoid the penalties for under-withholding and failure to report your NRA's
  • Discover the best practices for managing NRA information reporting and backup withholding

Learning Objectives

  • Identify workers who may be non-resident aliens and proceed to the forms and methods of collecting the necessary information to determine whether back-up withholding is required
  • Describe the rules and forms for proper depositing of back-up withholding taxes and the required reporting to the worker as well as to the IRS
  • Recognize the impact on the Forms W-8 (now five forms instead of four)

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

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