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
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.