WITHHOLDING TAX ON U.S. SOURCE INCOME OF FOREIGN PERSONS

U.S. withholding agents are typically required to report total amount of U.S. Source Income paid to foreign payees and taxes withheld as well as by recipient.

There are certain exceptions to withholding obligations, such as portfolio income exemption, as well as separate Foreign Investment in Real Property Tax Act (FIRPTA) withholding requirements in the event of sale of U.S. real property by a foreign person.

If the withholding agent fails to comply with withholding and deposit requirements, they may be personally liable for taxes, penalties, and interest.

OUR SERVICES AND HOW WE CAN HELP

Consulting on withholding strategy & documentation: We can assist with reviewing withholding related forms, such as W-8 series, W-9, etc.
Backup withholding compliance: We can assist with compliance related to backup withholding requirements for payees who fail to provide valid TIN and correcting if proper compliance was not done.
1042 Withholding for Payments to Foreign Persons: We can assist with withholding reporting of U.S. Source Income paid to foreign payees, collection and review processes of W-8 form series, and compliance with backup withholding requirements when valid TIN is missing.
Withholding on Partnerships with Foreign Partners: We can assist with advising partnerships on withholding obligations, calculating withholding amounts, and assisting foreign partners filing U.S. returns to get refunds.

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Our attorney can assist with evaluating and optimizing your tax options.

Tax law is complex. Tax attorney ALENA MILES offers legal tax solutions

WITHHOLDING TAX ON U.S. SOURCE INCOME OF FOREIGN PERSONS

OUR SERVICES AND HOW WE CAN HELP

NEXT STEPS

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