Nonresident Alien Vendors - How to Handle the Information Reporting and Backup Withholding Requirements Webinar
Time: 12:00 PM PDT | 03:00 PM EDT
Duration: 90 Minutes
Instructor: Miles Hutchinson
This 90 minutes webinar will equip all the participants to gain the knowledge and tools to identify your nonresident alien payees, correctly identify the proper forms and protocols, and bring your company into compliance with the information reporting and 30% backup withholding requirements.
How can you tell your vendor or payee is a nonresident alien? What if you send them a 1099 when you should have sent them a 1042-S with backup withholding for the payments you made to them? How will you deal with the IRS demand for the backup withholding you failed to deduct from the NRAs payments? In just 90 minutes, you can develop a solid plan to move your company toward near absolute regulatory compliance, efficiency improvements, standardized processes, & adequate documentation to ensure your nonresident alien payments 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.
Why Should you Attend:
Attend this webinar to know whether you can accept a W-9 from someone or request a W-8 instead? The IRS knows 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. Generally, a foreign person is subject to U.S. tax on its U.S. source income. Most types of U.S. source income received by a foreign person are subject to U.S. tax of 30%. A reduced rate, including exemption, may apply if an Internal Revenue Code Section provides for a lower rate, or there is a tax treaty between the foreign person´s country of residence and the United States.
Objectives of the Presentation:
The prime aim of this presentation is to cover areas such as:
- IRS definition for Nonresident Alien?
- Learn the best way to handle questions from NRAs who do not understand your requests or the forms
- How to determine whether to request a W-9 or a W-8 from the vendor?
- Understand the specifics of the five unique Forms W-8 and when to request each one
- Examine a tax treaty to confirm a claim of exemption from or reduced rate of backup withholding
- Learn how to locate and apply tax treaties between the USA and foreign countries
- Determine whether you are the withholding agent and
- Learn how to determine the beneficial owner of the payments you are making
- Ensure your backup withholding deposits are timely and keep the IRS from confusing them with your payroll tax withholding deposits
- Learn when and how to properly initiate backup withholding on your NRAs
- Study the 1042-S and related forms for filing your 1042-S´s
- Learn how to properly report backup withholding on the Annual Withholding Tax Return
- Avoid the penalties for under-withholding and failure to report your NRAs
- Discover the best practices for managing NRA information reporting and backup withholding