Foreign Vendors: How to Identify Foreign Status and Tax Withholding Requirements | Product

Does your organization make payments to foreign vendors?  The IRS W-8 forms used to certify foreign status, the rules for withholding federal income tax and the Form 1042-S tax information return are very complex – and failure to withhold the statutory 30% from payments when required results in the required amount becoming the tax liability of the payer. Join this webinar for an overall picture of these requirements and best practices for compliance.  Discussion in this webinar will cover:

• Types of payments to foreign vendors which are subject to these tax compliance requirements
• The three forms in the W-8 certificate series most frequently furnished to AP 
• Tax withholding under the “withholding-at-source” rules of Internal Revenue Code chapter 3 
• Tax withholding under “FATCA” rules of I.R.C chapter 4 
• Federal tax deposit of the withheld amounts 
• IRS Forms 1042-S and 1042

Learning Objectives:

• Identify the types of payments and vendors subject to federal income tax withholding and Form 1042-S reporting 
• Identify the basic determinants of the “sourcing” of income 
• Learn how Forms W-8BEN, W-8BEN-E and W-8IMY are used in certification of foreign status 
• Identify when tax withholding is required and when federal deposits are due