Author: Miles Hutchinson
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.
Publication Date: November 2016
Designed ForCFOs, Controllers, Compliance Managers, Accounting Managers, Accounts Payable Managers, as well as any staff and professional advisors that deal with Forms W-8 and 1042-S.
NASBA Field of Study
Taxes (3 hours)