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

Duration: 90 Minutes
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.
Nonresident Alien Vendors
Instructor: Miles Hutchinson
Product ID: 500326

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.
Live Session - How it works
  • Username and Password will be sent to you 24 hours prior to the webinar
  • Presentation handouts in pdf formate will be mailed to you
  • Login to the session using the username and password provided to you
  • Get answer to your queries through interactive Q&A sessions via chat
  • Please let us know your thoughts and views at the end of webinar, your valuable feedback will help us improve
  • Get certification of attendance.
Recorded Session - How it works
  • A link will be provided to you upon purchase of the recorded session
  • Please click on the link to access the session
  • Presentation handouts in pdf formate will be mailed to you
  • Get certification of attendance.
$300
Recorded Session for one participant
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How it works
Live Session - How it works
  • Login to onlinecompliancepanel with your registered username and password https://www.onlinecompliancepanel.com/login
  • The webinar joining link, username and password for joining the webinar will be updated on your OCP Account 24 hours prior to the webinar
  • Presentation handouts in Downloadable PDF format will be updated on your OCP Account 24 hours prior to the live session
  • Login to the audio conference on the scheduled date and time
  • Get answers to your queries through interactive Q&A sessions via chat at the end of the session
  • Download the Certificate of Attendance and Purchase Invoice from your OCP Account 24 hours after the completion of the session
  • Please let us know your thoughts and views at the end of the webinar, your valuable feedback will help us improve
Recorded Session - How it works
  • Login to onlinecompliancepanel with your registered username and password https://www.onlinecompliancepanel.com/login
  • Upon purchase of the recorded session a link will be updated on your OCP Account within 24 hours
  • Please click on the link to access the Recorded Session
  • Presentation handouts in downloadable PDF format will be updated on your OCP Account within 24 hours of the purchase of the product
  • Download the Certificate of Attendance and Purchase Invoice from your OCP Account after 48 hours of the product Purchase
  • Please share your valuable Feedback at the end of the session
Instructor Profile:
Miles Hutchinson is a CGMA (Chartered Global Management Accountant) and experienced businessman. He has been an auditor with PriceWaterhouseCoopers and the Chief Financial Officer of a $1 billion real estate development company. Miles is a professional speaker and consultant who has presented over 2,000 seminars and training sessions on a myriad of business and financial topics, like financial analysis and modeling, accounting, strategic planning, and compliance with the Sarbanes-Oxley Act.

He has over 35 years of practical experience in strategic planning, analysis and reporting. He is the author of several useful reporting and tax tools available at www.soxpolicies.com and www.salestaxadvisors.com. His clients include, Abbott Labs, Bank of America, Boston Scientific, Citicorp, Corning, the FBI, the FDA, the Federal Reserve, GE, Pfizer, Siemens, US Marine Corps, and the US Army. Please visit his web sites to see how you can further benefit from his expertise.
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