Nonresident Alien Reporting: IRS Compliance

Authored by Miles Hutchinson
About this Course
Topics covered include: How to determine whether Nonresident Aliens are working for you; Review the five forms W-8 including the new W-8BEN-E just released in Q1-2014; Drafts of revised forms W-8 soon to be released; How to determine which W-8 to provide to the NRA; How a NRA individual must support their claim of exemption from withholding; Best way to handle questions form NRAs who do not understand your requests or the forms; Examine a tax treaty and learn how to use it to confirm a claim of exemption from or reduced rate of backup withholding; Make your backup withholding deposits timely and keep the IRS from confusing them with your payroll tax withholding deposits; Study the 1042-S and related forms for filing and reporting backup withholding on the Annual Withholding Tax Return; Avoid the penalties for under-withholding and failure to report your NRA's; Discover the best practices for managing NRA information reporting and backup withholding. Upon completing this course, you should be able to: Identify the best tools available to identify your Nonresident Alien payees (NRA's) and bring your company into compliance with the 30% backup withholding requirements; Recognize and implement a solid plan to move your company toward regulatory compliance, efficiency improvements, standardized processes, & adequate documentation to ensure your NRA's are properly handled according to IRS and tax treaty regulations; Differentiate how to obtain the treaties and confirm exemption claims made by your NRA's with the IRS; Identify which type of taxpayer will have their information reported through Form 1042-S; Identify the first question to consider with respect to the substantial presence test; Differentiate W-8 forms for nonresident aliens is used to designate withholding and reporting party elections; Recognize proper statements with respect to Form W-8 and 8233 Identify a benefit of using the substitute form instead of an electronic filing; Describe the top Form 1042-S processing error; Recognize the first payment percentage withholding rate generally required of 1042-S reporting; Describe the congressional acts mandated that any ITIN not used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return as of Jan. 1, 2017; Identify when a trust is considered a U.S. trust if a court in the U.S. can exercise primary supervision over its administration; Differentiate which W-8 forms relates to effectively connected income; Recognize the year faxed and emailed copies of W-8s as well as Forms 8233 are accepted; Differentiate types of income sourced; Identify the first step to be performed if you sent a nonresident alien a Form 1099 without proper backup withholding.
$ 24.00
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NASBA Field of Study
CPE Credits
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