Withholding on Payments to Foreign Persons: Planning and Compliance with Forms 1042 and W-8
Date: Monday, September 21, 2026
Instructor: Robert J. Misey
| Begin Time: |
9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
|
NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Withholding on payments to foreign persons is a critical compliance obligation for U.S. payers and one of the most heavily enforced areas of international tax administration. While U.S. businesses are generally familiar with reporting and payment procedures for domestic recipients, payments to foreign individuals and entities trigger extensive withholding, reporting, and documentation requirements under multiple statutory regimes. Failure to properly withhold can shift the tax liability from the foreign recipient to the U.S. payer, along with penalties and interest.
This online course provides a practical and comprehensive overview of U.S. withholding rules applicable to payments made to foreign persons. Led by former IRS Chief Counsel (International) attorney Robert Misey, the program explains how the U.S. tax system identifies foreign payees, when U.S.‑source income is subject to withholding, and how the Fixed, Determinable, Annual, or Periodic (FDAP) and Foreign Account Tax Compliance Act (FATCA) regimes operate. Participants will also examine withholding obligations arising from U.S. real estate transactions and partnership interests.
Designed for professionals responsible for compliance, this course concludes with a walk‑through of required documentation and reporting, including the proper completion of Forms W‑8 and Form 1042. Attendees will gain the tools needed to reduce risk, ensure compliance, and confidently manage withholding responsibilities for payments to foreign persons.
Who Should Attend
This course is designed for tax and accounting professionals who are responsible for handling or advising on payments made to foreign persons.
Topics Covered
- Overview of U.S. taxation of foreign persons
- Withholding on U.S.‑source FDAP income
- FATCA withholding on withholdable payments
- Withholding and reporting procedures
- Withholding on sales of U.S. real property
- Withholding on transfers of U.S. partnership interests
- Completion of Forms 1042 and W‑8
Learning Objectives
- Identify foreign persons receiving U.S.‑source income subject to withholding requirements
- Apply withholding rules to U.S.‑source fixed, determinable, annual, or periodic (FDAP) income
- Explain FATCA withholding rules applicable to withholdable payments
- Implement proper procedures for payments made to foreign persons
- Prepare and review Forms W‑8 and Form 1042 for withholding compliance
Level
Basic
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
