Form 1042-S & W-8 - What's New and Who Must File?
Form 1042-S reports the Foreign Person’s U.S. Source Income Subject to Withholding, including non-resident aliens, foreign corporations, foreign partnerships, foreign trusts, and foreign estates - subjected to income tax withholding. The IRS imposes and timely increases the penalties, if you intentionally use incorrect information or if you don't file it in time. This training will be a start-to-end guide for taxpayers to report the amounts paid to foreign persons (including those presumed to be foreign) by a U.S based business or institution.
You can use Form 1042-S to report taxable federal payments and federal tax withholding considering incomes received by U.S. nonresidents: royalty and non-employee prize payments, independent contractor service payments, and scholarship/fellowship tax reportable income - but under what circumstances? Where does Form W-8 come in and how does it affect your reporting? Why does W-8 have so many variants, which one would you consider, and what does the recent one include?
The IRS works to minimize the burden taxpayers go through every tax year. Although businesses and companies are getting familiar with 1099 reporting and its non-compliance consequences, identifying and performing backup withholding on NRAs is still a complicated task for most companies and their advisors.
Do you know what happens if you fail to deduct from payments to Nonresident Aliens (NRAs)? What's your plan to deal with IRS demands for backup withholding? Collecting the tax due from NRAs working in the U.S. is an IRS Tier 1 audit issue. This training will help you understand the withholding implications including the ones under section 5000C for Federal procurement payments paid to foreign persons.
How can you minimize this tax burden? How can companies making payments to NRAs for both dependent and independent personal services properly withhold on these payments? Join us on Compliancevent to find out.
This training is essential for all professionals in the industry, NGO’s, schools, public practice, and government who are responsible for filing or overseeing information reporting compliance and related issues.
What You'll Learn
-How to comply with IRS information reporting and backup withholding requirements for NRAs?
-How to efficiently manage nonresident alien payee tax issues?
-How to develop an effective plan to improve your company's regulatory compliance?
-How to determine whether Nonresident Aliens are working for you.
-What are the five variations of Forms W-8, including the most recent addition - W-8BEN-E?
-How to determine which W-8 to provide to the NRA?
-How must NRA individuals support their claim of exemption from withholding?
-How can you smartly handle the questions from NRAs who do not understand your requests or the forms?
-Form 1042-S and related forms for filing and reporting backup withholding on the Annual Withholding Tax Return
-What are the tax treaties and how can you use them to confirm a claim of exemption from or reduced rate of backup withholding?
-How can you make your backup withholding deposits timely and keep the IRS from confusing them with your payroll tax and other withholding deposits?
Why is this Important to Attend?
Join us to learn how to identify your NRA payees and bring your company into compliance with the 30% backup withholding requirements. You will learn to develop an effective plan to move your company, institution, or clients toward complete regulatory compliance. You'll find ways for improvements, standardized processes, and adequate documentation, to ensure NRAs are properly handled according to IRS and tax treaty regulations. We'll also discuss how you can use the tax treaties for your benefit. You'll discover the best practices you need to confirm exemption claims made by your NRAs with the IRS.
Who Must Join?
-Information Reporting Officers
Target Companies and Associations – (Please Mention If Any )
-All types of entities including For Profit, Not for Profit, Government (Federal and State) – everyone who hires an independent contractor has reporting obligations
-AICPA, CGMA, IOMA, TAPN
You may ask your Question directly to our expert during the Q&A session.