ONESOURCE Nonresident Alien Taxation Newsletter
Welcome to the ONESOURCE Nonresident Alien Taxation newsletter, your source for NRA payroll compliance, NRA withholding, W-8 solicitation, and 1042/1042-S reporting information.
By Paula N. Singer, Esq.
The IRS enforces compliance with withholding obligations by collecting the under-withheld tax from payers who fail to meet their obligations to withhold and timely pay over withheld taxes.
Assessments are increased for penalties as provided by the Code (and explained in the instructions for the various forms) and for interest computed on the taxes and penalties.
The IRS has published the highly anticipated draft of an all-new Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, for use in reporting 2014 income payments (reporting you will do in 2015).
Withholding and reporting on payments to foreign employees, students, and scholars is not simple. In addition to the rules and procedures for special withholding and reporting, there are also immigration- and tax treaty-related rules and procedures to follow to ensure compliance.
Thomson Reuters Tax & Accounting Corporate Software & Services is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.