Withholding of Taxes on Payments to Foreign Persons and Entities (OnDemand Webinar)


SKU: 409784EAU


Learn to navigate the myriad of W8s available for documenting a payee as a foreign person.Most organizations have procedures in place to correctly and efficiently report certain payments to U.S. persons on Form 1099. However, far fewer organizations are as familiar with the process of reporting certain payments to foreign persons on Form 1042S. The complexity involved in reporting payments to foreign persons is far greater. While a U.S. person would provide the same W9 regardless of entity or payment type, a foreign person could provide one of several W8s (e.g., W8BEN, W8BENE, W8ECI) or even a Form 8233. In addition, the type of payments reportable may depend upon sourcing (foreign or U.S.), and the determination to withhold may depend upon an income tax treaty. Lack of adequate documentation and analysis can result in the payer of income being held liable for the 30 withholding tax in addition to penalties and interest. This course will help those responsible for payments to foreign persons navigate the myriad of W8s available for documenting a payee as a foreign person. In addition, the material will help identify the types of payments reportable on Form 1042S, including a broad overview of the sourcing rules which determine if a payment is a U.S. or foreign source. This course will also provide guidance on determining if the payee should withhold the payment and, if so, what is the proper withholding rate. This includes the role of income tax treaties. Finally, the material will discuss filing deadlines related to Form 1042S, withholding tax deposit requirements, and any penalties and interest related to lack of compliance.

Date: 2022-05-25 Start Time: End Time:

Learning Objectives

Imposition of Withholding on FDAP Income
• 881 Discussion
• Brief Discussion of 882 ECI and Differences From FDAP
• 1441 and 1442 Discussion
• Status of Income Recipient (Resident vs. Non-Resident; Individual vs. Entity, Substantial Presence Test)

Sourcing of FDAP Income
• Interest
• Dividends
• Royalties
• Compensation for Services
• Other Income and Payments

• Requirements to Qualify and Residence
• Beneficial Rates on FDAP Income
• LOB Provisions

Special Rules for Partnership Withholding
• General Withholding of FDAP Income
• Lag Method Reporting Requirement (Distributive Share of FDAP Withholding When K-1 Provided vs. Due Date)
• Withholding of ECI From Foreign Partners of Domestic Partnerships
• Foreign Partnerships • Withholding Agent/Withholding Statement Issues
• Forms 8804, 8805, and 8813

Forms (Generally)
• 1042 and 1042-S
• W-8 Forms
• E-File Requirements

• Failure to File
• Late Filing

Questions and Answers

Michael Campbell, CPA-Crowe LLP, Brandon Harrell – Crowe LLP

Withholding of Taxes on Payments to Foreign Persons and Entities (OnDemand Webinar)


SKU: 405531EAU


Make sure you are compliant with the IRS international withholding standards.
In an increasingly global society, many U.S. payers of items of income are unknowingly subject to withholding tax obligations for payments to foreign individuals and entities. Understanding the rules for withholding on these payments can reduce liability to the IRS. Identify when income is subject to withholding, evaluate the proper procedures to withhold and comply with the proper documentation.

Date: 2019-01-11 Start Time: End Time:

Learning Objectives

Types of Income Subject to Withholding
• FATCA and the Threat of Withholding to Induce Disclosure
• Dividends, Interest, Rents and Royalties
• Compensation
• Partnership Income
• Withholding on Purchases of U.S. Real Estate

Determining the Beneficial Owners of Income
• Documentation
• Presumptions in the Absence of Documentation

• Qualified Intermediaries
• Nonqualified Intermediaries

• Forms 1042 Package
• Form 8804 for Partnership Withholding Tax
• Complying With the Foreign Investment in Real Property Tax Act

CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.

Adam R. Konrad-Reinhart Boerner Van Deuren S.C., Robert Misey – Reinhart Boerner Van Deuren S.C.