Nonresident Alien Vendors – How To Handle The Information Reporting And Backup Withholding Requirements Of The IRS

Key Take Away

Join us to obtain the best tools available to identify your Nonresident Alien payees (NRA’s) and bring your company into compliance with the 30% backup withholding requirements on dollar one.

Overview

How do you know whether you can accept a W-9 from someone or you must request a W-8 instead?  What if you send them a 1099 when you should have sent them a 1042-S.? How will you deal with the IRS demand for the backup withholding you failed to deduct from the Nonresident Alien’s (NRA’s) payments? The IRS is working hard to reduce the delinquent tax burden. They know 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.  Collecting the tax due from NRAs working in the U.S. is a Tier 1 audit issue. This tax burden is minimized when companies making payments to NRAs for dependent and independent personal services properly withhold on these payments.

why should you attend

In just 90 minutes, you can begin to develop a solid plan to move your company toward near absolute regulatory compliance, efficiency improvements, standardized processes, & adequate documentation to ensure your NRA’s 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 with the IRS.

Areas Covered in this Webinar

• How to determine whether Nonresident Aliens are working for you
• Review the five forms W-8 including the newest Forms W-8
• Learn about the drafts of revised forms W-8 soon to be released
• Learn how to determine which W-8 to provide to the NRA
• Discover how a NRA individual must support their claim of exemption from withholding
• Learn the 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
• Discover how to 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

Learning Objectives

During this 1099 compliance training, we will begin with the methods of identifying workers who may be non-resident aliens and proceed to the forms and methods of collecting the necessary information to determine whether back-up withholding is required.  Next we will examine the rules and forms for proper depositing of back-up withholding taxes and the required reporting to the worker as well as to the IRS.  Please note, beginning in 2014 the number and complexity of the forms have both increased due to the implementation of FATCA, the Foreign Accounts Tax Compliance Act.  This course will briefly introduce FATCA and show the impact on the Forms W-8 (now five forms instead of four).  The course will focus on Chapter 3 of the internal revenue code related to the payment of FDAP income to non-resident aliens (including an explanation of FDAP income).
Who Will Benefit

• Information Reporting Officers
• Tax Managers
• Compliance Officers
• Compliance Managers
• CFOs
• Controllers
• Accounting Managers
• Bank Managers
• Auditors
• IT Managers
• Risk Managers

Speakers Profile

Miles Hutchinson

Experienced CGMA and businessman Miles Hutchinson will explain the best practices to help you ensure your W-9 information matches that of the IRS – before the 1099’s go out – even before making the first payment to a new vendor. 

He will show you how to handle the remaining B-Notices that sneak through in the most efficient manner and help ensure your company never has to pay a penalty for failure to comply with these burdensome regulatory requirements.

Others Details

For more details and updates please visit webinar website