W-8/1042-S Compliance When Making Payments to Non-U.S. Persons
Author: Steven D. Mercatante
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
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.
Publication Date: July 2022
Topics Covered
- The Big Picture: 1042-S Audits Up!
- New W-8s!
- The W-9
- W-9/W-8 Validation for 1042/1042-S Filing
- W-9/W-8 Data Validation Can Flow Together: Presumptions
- Must Have a W-9/W-8: Due Diligence Framework in Place or Face Consequences
- W-9/W-8 Payee/Payment in Practice
- Who Is My Payee?
- W-8 and Purchase Invoices
- 1042-S Reportable Income
- W-8 Payment Sourcing
- W-8s & Treaty Benefits
- Wrap Up of General W-8 Validation Tips
- Filing Form 1042/1042-S
Learning Objectives
- Identify the regulations surrounding payments to foreign vendors
- Recognize how to make payments to foreign vendors and are confused as to how to validate Forms W-8 and 1042-S report those payments
- Identify if your organization does not have appropriate policies in place for identifying when W-8 or 1042-S reporting situations arise
- Describe 1099 reporting rules and want to get to the next level in terms of protecting your organization from an IRS audit
- Identify the most commonly used Form W-8
- Recognize a best practice with respect to Form W-8 and Form 1042-S reporting
- Identify which regulation provides that for an EIN beginning with "98," there is a presumption that the payee is not a U.S. person
- Recognize which payments are not subject to 1042 nonresident alien withholding
- Describe true statements regarding Forms 1042 and 1042-S
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
