2014 - Nonresident Alien Vendors - How to Handle the Information Reporting and Backup Withholding Requirements

Instructor: Miles Hutchinson
Description:
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.
How do you 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.
Why Should you Attend:
Join us for a content-rich 90-minutes and you will 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.
Objectives of the Presentation:
Starter Question: How does the IRS define a Nonresident Alien?
How to determine whether to request a W-9 or a W-8 from the vendor?
Learn the best way to handle questions from NRAs who do not understand your requests or the forms
Understand the specifics of the five unique Forms W-8 and when to request each one
Learn how to locate and apply tax treaties between the USA and foreign countries
Examine a tax treaty to confirm a claim of exemption from or reduced rate of backup withholding
Determine whether you are the withholding agent
Learn how to determine the beneficial owner of the payments you are making
Learn when and how to properly initiate backup withholding on your NRAs
Ensure your backup withholding deposits are timely and keep the IRS from confusing them with your payroll tax withholding deposits
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
Who can Benefit:
Tax Specialists
CFOs
Controllers
Accounting Managers
Accounts Payable Managers of companies and institutions who hire independent contractors
Financial and educational institutions have a particular interest in this topic.
Register Now:
http://www.onlinecompliancepanel.com/ecommerce/web...
Online Compliance Panel LLC
38868 Salmon Ter
Fremont, CA, USA
94536
Toll Free: 1-510-857-5896