Nonresident Alien Vendors:

Description

In a global economy, many of your vendors may be foreign companies. Nonresident alien vendors pose special problems for a US business that must report payments to those vendors to the IRS. How can you tell if your vendor may be a nonresident alien? How do you know whether you can accept a W-9 from your vendor or must you request a W-8 instead? What if you send a 1099 when you should have sent them a 1042-S and made 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 NRA's payments? If you attend this webinar, you can begin to develop a solid plan to ensure your nonresident alien payments are properly handled according to IRS and tax treaty regulations. You will learn how to find relevant treaties and confirm exemption claims made by your NRAs. 

Experienced CGMA and businessman Miles Hutchinson will explain the best practices to help you ensure that your NRAs get established in your vendor system correctly and that you initiate the proper backup withholding on the very first vendor payment. He will show you how to handle the deposits of backup withholding so the IRS doesn't commingle them with your Form 941 deposits. He will also show you how to prepare and file the Form 1042-S for each NRA.

Agenda

• How you can 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 about the four unique Forms W-8 and when to request the right one
• Learn when to use a Form 1099 and when to use a Form 1042-S
• 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 on Form 941
• Study the Form 1042-S and related forms for filing your 1042-S's and reporting 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 Should Attend

Human Resource managers, in-house attorneys and other corporate executives will want to attend this on a topic they can’t afford to miss.