Withholding of Taxes on Payments to Foreign Persons and Entities

In an increasingly global society, many U.S. payors 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. After viewing this OnDemand Webinar, you will be able to identify when income is subject to withholding, evaluate the proper procedures to withhold and comply with the proper documentation.

Authors

Agenda

Types of Income Subject to Withholding

• 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

Intermediaries

• Qualified Intermediaries
• Nonqualified Intermediaries

Compliance

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

Additional Formats