File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Ez Forms 2013

How To File Taxes2012 Turbotax Free2010 Amended ReturnAmended Federal Tax Return Form1040ez Tax Form And BookletFile Taxes Online Free140ezTax AmendmentsTaxslayer 2011 Tax Return1040 Ez 20122011 Tax 1040 EzFile Amended Tax Return FreeFree Efile H&r BlockFreestatetaxesFederal Tax Return 2011How To File 2011 Taxes OnlineAmend My Taxes OnlineFile Free Tax ReturnUnemployment TaxesHow To File 2011 Income Tax2011 Tax Forms 1040ezHow Do I Amend My 2012 Tax Return Online1040ez 2012 FormIrs Forms 1040ez InstructionsHow Do I File A 2012 Tax ReturnHow To Amend Taxes OnlineI Need To File My 2011 Tax Return2012 Federal Tax AmendmentIrs Tax 1040ezHow Can I File 2011 Taxes1040ez For 2012Form 1040ez 20121040ez Online FilingFile My 2010 TaxesPrepare 1040x OnlineFile Taxes For Free 20121040ez Income Tax FormFiling Taxes With UnemploymentSample 1040ezWhere Can I File State Taxes For Free

Ez Forms 2013

Ez forms 2013 2. Ez forms 2013   Withholding Tax Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Income Tax Withholding Statement. Ez forms 2013 30% Flat Rate Withholding Social Security and Medicare TaxesGeneral Information Bilateral Social Security (Totalization) Agreements Topics - This chapter discusses: Withholding income tax from the pay of U. Ez forms 2013 S. Ez forms 2013 citizens, Withholding tax at a flat rate, and Social security and Medicare taxes. Ez forms 2013 Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 673 Statement For Claiming Exemption From Withholding on Foreign Earned Income Eligible for the Exclusion Provided by Section 911 W-4 Employee's Withholding Allowance Certificate W-9 Request for Taxpayer Identification Number and Certification See chapter 7 for information about getting this publication and these forms. Ez forms 2013 Income Tax Withholding U. Ez forms 2013 S. Ez forms 2013 employers generally must withhold U. Ez forms 2013 S. Ez forms 2013 income tax from the pay of U. Ez forms 2013 S. Ez forms 2013 citizens working abroad unless the employer is required by foreign law to withhold foreign income tax. Ez forms 2013 Foreign earned income exclusion. Ez forms 2013   Your employer does not have to withhold U. Ez forms 2013 S. Ez forms 2013 income taxes from wages you earn abroad if it is reasonable to believe that you will exclude them from income under the foreign earned income exclusion or the foreign housing exclusion. Ez forms 2013   Your employer should withhold taxes from any wages you earn for working in the United States. Ez forms 2013 Statement. Ez forms 2013   You can give a statement to your employer indicating that you expect to qualify for the foreign earned income exclusion under either the bona fide residence test or the physical presence test and indicating your estimated housing cost exclusion. Ez forms 2013   Form 673 is an acceptable statement. Ez forms 2013 You can use Form 673 only if you are a U. Ez forms 2013 S. Ez forms 2013 citizen. Ez forms 2013 You do not have to use the form. Ez forms 2013 You can prepare your own statement. Ez forms 2013 See a copy of Form 673, later. Ez forms 2013   Generally, your employer can stop the withholding once you submit the statement that includes a declaration that the statement is made under penalties of perjury. Ez forms 2013 However, if your employer has reason to believe that you will not qualify for either the foreign earned income or the foreign housing exclusion, your employer must continue to withhold. Ez forms 2013   In determining whether your foreign earned income is more than the limit on either the foreign earned income exclusion or the foreign housing exclusion, if your employer has any information about pay you received from any other source outside the United States, your employer must take that information into account. Ez forms 2013 Foreign tax credit. Ez forms 2013   If you plan to take a foreign tax credit, you may be eligible for additional withholding allowances on Form W-4. Ez forms 2013 You can take these additional withholding allowances only for foreign tax credits attributable to taxable salary or wage income. Ez forms 2013 Withholding from pension payments. Ez forms 2013   U. Ez forms 2013 S. Ez forms 2013 payers of benefits from employer-deferred compensation plans, individual retirement plans, and commercial annuities generally must withhold income tax from payments delivered outside of the United States. Ez forms 2013 You can choose exemption from withholding if you: Provide the payer of the benefits with a residence address in the United States or a U. Ez forms 2013 S. Ez forms 2013 possession, or Certify to the payer that you are not a U. Ez forms 2013 S. Ez forms 2013 citizen or resident alien or someone who left the United States to avoid tax. Ez forms 2013 Check your withholding. Ez forms 2013   Before you report U. Ez forms 2013 S. Ez forms 2013 income tax withholding on your tax return, you should carefully review all information documents, such as Form W-2, Wage and Tax Statement, and the Form 1099 information returns. Ez forms 2013 Compare other records, such as final pay records or bank statements, with Form W-2 or Form 1099 to verify the withholding on these forms. Ez forms 2013 Check your U. Ez forms 2013 S. Ez forms 2013 income tax withholding even if you pay someone else to prepare your tax return. Ez forms 2013 You may be assessed penalties and interest if you claim more than your correct amount of withholding allowances. Ez forms 2013 This image is too large to be displayed in the current screen. Ez forms 2013 Please click the link to view the image. Ez forms 2013 Form 673 30% Flat Rate Withholding Generally, U. Ez forms 2013 S. Ez forms 2013 payers of income other than wages, such as dividends and royalties, are required to withhold tax at a flat 30% (or lower treaty) rate on nonwage income paid to nonresident aliens. Ez forms 2013 If you are a U. Ez forms 2013 S. Ez forms 2013 citizen or resident alien and this tax is withheld in error from payments to you because you have a foreign address, you should notify the payer of the income to stop the withholding. Ez forms 2013 Use Form W-9 to notify the payer. Ez forms 2013 You can claim the tax withheld in error as a withholding credit on your tax return if the amount is not adjusted by the payer. Ez forms 2013 Social security benefits paid to residents. Ez forms 2013   If you are a lawful permanent resident (green card holder) and a flat 30% tax was withheld in error on your social security benefits, the tax is refundable by the Social Security Administration (SSA) or the IRS. Ez forms 2013 The SSA will refund the tax withheld if the refund can be processed during the same calendar year in which the tax was withheld. Ez forms 2013 If the SSA cannot refund the tax withheld, you must file a Form 1040 or 1040A with the Internal Revenue Service Center at the address listed under Where To File to determine if you are entitled to a refund. Ez forms 2013 The following information must be submitted with your Form 1040 or Form 1040A. Ez forms 2013 A copy of Form SSA-1042S, Social Security Benefit Statement. Ez forms 2013 A copy of your “green card. Ez forms 2013 ” A signed declaration that includes the following statements. Ez forms 2013   “I am a U. Ez forms 2013 S. Ez forms 2013 lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. Ez forms 2013 I am filing a U. Ez forms 2013 S. Ez forms 2013 income tax return for the taxable year as a resident alien reporting all of my worldwide income. Ez forms 2013 I have not claimed benefits for the taxable year under an income tax treaty as a nonresident alien. Ez forms 2013 ” Social Security and Medicare Taxes Social security and Medicare taxes may apply to wages paid to an employee regardless of where the services are performed. Ez forms 2013 General Information In general, U. Ez forms 2013 S. Ez forms 2013 social security and Medicare taxes do not apply to wages for services you perform as an employee outside the United States unless one of the following exceptions applies. Ez forms 2013 You perform the services on or in connection with an American vessel or aircraft (defined later) and either: You entered into your employment contract within the United States, or The vessel or aircraft touches at a U. Ez forms 2013 S. Ez forms 2013 port while you are employed on it. Ez forms 2013 You are working in one of the countries with which the United States has entered into a bilateral social security agreement (discussed later). Ez forms 2013 You are working for an American employer (defined later). Ez forms 2013 You are working for a foreign affiliate (defined later) of an American employer under a voluntary agreement entered into between the American employer and the U. Ez forms 2013 S. Ez forms 2013 Treasury Department. Ez forms 2013 American vessel or aircraft. Ez forms 2013   An American vessel is any vessel documented or numbered under the laws of the United States and any other vessel whose crew is employed solely by one or more U. Ez forms 2013 S. Ez forms 2013 citizens, residents, or corporations. Ez forms 2013 An American aircraft is an aircraft registered under the laws of the United States. Ez forms 2013 American employer. Ez forms 2013   An American employer includes any of the following. Ez forms 2013 The U. Ez forms 2013 S. Ez forms 2013 Government or any of its instrumentalities. Ez forms 2013 An individual who is a resident of the United States. Ez forms 2013 A partnership of which at least two-thirds of the partners are U. Ez forms 2013 S. Ez forms 2013 residents. Ez forms 2013 A trust of which all the trustees are U. Ez forms 2013 S. Ez forms 2013 residents. Ez forms 2013 A corporation organized under the laws of the United States, any U. Ez forms 2013 S. Ez forms 2013 state, or the District of Columbia, Puerto Rico, the U. Ez forms 2013 S. Ez forms 2013 Virgin Islands, Guam, or American Samoa. Ez forms 2013   An American employer also includes any foreign person with an employee who is performing services in connection with a contract between the U. Ez forms 2013 S. Ez forms 2013 government (or any instrumentality thereof) and a member of a domestically controlled group of entities which includes such foreign person. Ez forms 2013 Foreign affiliate. Ez forms 2013   A foreign affiliate of an American employer is any foreign entity in which the American employer has at least a 10% interest, directly or through one or more entities. Ez forms 2013 For a corporation, the 10% interest must be in its voting stock. Ez forms 2013 For any other entity, the 10% interest must be in its profits. Ez forms 2013   Form 2032, Contract Coverage Under Title II of the Social Security Act, is used by American employers to extend social security coverage to U. Ez forms 2013 S. Ez forms 2013 citizens and resident aliens working abroad for foreign affiliates of American employers. Ez forms 2013 Once you enter into an agreement, coverage cannot be terminated. Ez forms 2013 Excludable meals and lodging. Ez forms 2013   Social security tax does not apply to the value of meals and lodging provided to you for the convenience of your employer if it is reasonable to believe that you will be able to exclude the value from your income. Ez forms 2013 Bilateral Social Security (Totalization) Agreements The United States has entered into agreements with some foreign countries to coordinate social security coverage and taxation of workers who are employed in those countries. Ez forms 2013 These agreements are commonly referred to as totalization agreements and are in effect with the following countries. Ez forms 2013 Australia Greece Norway Austria Ireland Poland Belgium Italy Portugal Canada Japan Spain Chile Korea, Sweden Czech South Switzerland Republic Luxembourg United Denmark Netherlands Kingdom Finland     France     Germany           Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. Ez forms 2013 The agreements generally make sure that you pay social security taxes to only one country. Ez forms 2013 Generally, under these agreements, you will only be subject to social security taxes in the country where you are working. Ez forms 2013 However, if you are temporarily sent to work in a foreign country and your pay would otherwise be subject to social security taxes in both the United States and that country, you generally can remain covered only by U. Ez forms 2013 S. Ez forms 2013 social security. Ez forms 2013 You can get more information on any specific agreement by contacting: Social Security Administration Office of International Programs P. Ez forms 2013 O. Ez forms 2013 Box 17741 Baltimore, MD 21235-7741 If you have access to the Internet, you can get more information at: http://www. Ez forms 2013 socialsecurity. Ez forms 2013 gov/international. Ez forms 2013 Covered by U. Ez forms 2013 S. Ez forms 2013 only. Ez forms 2013   If your pay in a foreign country is subject only to U. Ez forms 2013 S. Ez forms 2013 social security tax and is exempt from foreign social security tax, your employer should get a certificate of coverage from the Office of International Programs. Ez forms 2013 Covered by foreign country only. Ez forms 2013   If you are permanently working in a foreign country with which the United States has a social security agreement and, under the agreement, your pay is exempt from U. Ez forms 2013 S. Ez forms 2013 social security tax, you or your employer should get a statement from the authorized official or agency of the foreign country verifying that your pay is subject to social security coverage in that country. Ez forms 2013   If the authorities of the foreign country will not issue such a statement, either you or your employer should get a statement from the U. Ez forms 2013 S. Ez forms 2013 Social Security Administration, Office of International Programs, at the address listed earlier. Ez forms 2013 The statement should indicate that your wages are not covered by the U. Ez forms 2013 S. Ez forms 2013 social security system. Ez forms 2013   This statement should be kept by your employer because it establishes that your pay is exempt from U. Ez forms 2013 S. Ez forms 2013 social security tax. Ez forms 2013   Only wages paid on or after the effective date of the totalization agreement can be exempt from U. Ez forms 2013 S. Ez forms 2013 social security tax. Ez forms 2013 Prev  Up  Next   Home   More Online Publications
Español

Popular New Year's Resolutions

Happy New Year! These New Year's resolutions are popular every year. Here’s information that can help you achieve your goals in 2014.


The Ez Forms 2013

Ez forms 2013 Publication 515 - Main Content Table of Contents Withholding of TaxWithholding Agent Withholding and Reporting Obligations Persons Subject to NRA WithholdingIdentifying the Payee Foreign Persons DocumentationBeneficial Owners Foreign Intermediaries and Foreign Flow-Through Entities Standards of Knowledge Presumption Rules Income Subject to NRA WithholdingSource of Income Fixed or Determinable Annual or Periodical Income (FDAP) Withholding on Specific IncomeEffectively Connected Income Income Not Effectively Connected Pay for Personal Services Performed Artists and Athletes (Income Codes 42 and 43) Other Income Foreign Governments and Certain Other Foreign Organizations U. Ez forms 2013 S. Ez forms 2013 Taxpayer Identification NumbersUnexpected payment. Ez forms 2013 Depositing Withheld TaxesWhen Deposits Are Required Adjustment for Overwithholding Returns RequiredJoint owners. Ez forms 2013 Electronic reporting. Ez forms 2013 Partnership Withholding on Effectively Connected IncomeWho Must Withhold Foreign Partner Publicly Traded Partnerships U. Ez forms 2013 S. Ez forms 2013 Real Property InterestForeign corporations. Ez forms 2013 Domestic corporations. Ez forms 2013 U. Ez forms 2013 S. Ez forms 2013 real property holding corporations. Ez forms 2013 Partnerships. Ez forms 2013 Trusts and estates. Ez forms 2013 Domestically controlled QIE. Ez forms 2013 Late filing of certifications or notices. Ez forms 2013 Certifications. Ez forms 2013 Liability of agent or qualified substitute. Ez forms 2013 Reporting and Paying the Tax Withholding Certificates Tax Treaty TablesTable 1 Table 2 Table 3 How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Ez forms 2013 Withholding of Tax In most cases, a foreign person is subject to U. Ez forms 2013 S. Ez forms 2013 tax on its U. Ez forms 2013 S. Ez forms 2013 source income. Ez forms 2013 Most types of U. Ez forms 2013 S. Ez forms 2013 source income received by a foreign person are subject to U. Ez forms 2013 S. Ez forms 2013 tax of 30%. Ez forms 2013 A reduced rate, including exemption, may apply if there is a tax treaty between the foreign person's country of residence and the United States. Ez forms 2013 The tax is generally withheld (NRA withholding) from the payment made to the foreign person. Ez forms 2013 The term “NRA withholding” is used in this publication descriptively to refer to withholding required under sections 1441, 1442, and 1443 of the Internal Revenue Code. Ez forms 2013 In most cases, NRA withholding describes the withholding regime that requires withholding on a payment of U. Ez forms 2013 S. Ez forms 2013 source income. Ez forms 2013 Payments to foreign persons, including nonresident alien individuals, foreign entities, and governments, may be subject to NRA withholding. Ez forms 2013 NRA withholding does not include withholding under section 1445 of the Code (see U. Ez forms 2013 S. Ez forms 2013 Real Property Interest, later) or under section 1446 of the Code (see Partnership Withholding on Effectively Connected Income , later). Ez forms 2013 A withholding agent (defined next) is the person responsible for withholding on payments made to a foreign person. Ez forms 2013 However, a withholding agent that can reliably associate the payment with documentation (discussed later) from a U. Ez forms 2013 S. Ez forms 2013 person is not required to withhold. Ez forms 2013 In addition, a withholding agent may apply a reduced rate of withholding (including an exemption from withholding) if it can reliably associate the payment with documentation from a beneficial owner that is a foreign person entitled to a reduced rate of withholding. Ez forms 2013 Withholding Agent You are a withholding agent if you are a U. Ez forms 2013 S. Ez forms 2013 or foreign person that has control, receipt, custody, disposal, or payment of any item of income of a foreign person that is subject to withholding. Ez forms 2013 A withholding agent may be an individual, corporation, partnership, trust, association, nominee (under section 1446 of the Code), or any other entity, including any foreign intermediary, foreign partnership, or U. Ez forms 2013 S. Ez forms 2013 branch of certain foreign banks and insurance companies. Ez forms 2013 You may be a withholding agent even if there is no requirement to withhold from a payment or even if another person has withheld the required amount from the payment. Ez forms 2013 Although several persons may be withholding agents for a single payment, the full tax is required to be withheld only once. Ez forms 2013 In most cases, the U. Ez forms 2013 S. Ez forms 2013 person who pays an amount subject to NRA withholding is the person responsible for withholding. Ez forms 2013 However, other persons may be required to withhold. Ez forms 2013 For example, a payment made by a flow-through entity or nonqualified intermediary that knows, or has reason to know, that the full amount of NRA withholding was not done by the person from which it receives a payment is required to do the appropriate withholding since it also falls within the definition of a withholding agent. Ez forms 2013 In addition, withholding must be done by any qualified intermediary, withholding foreign partnership, or withholding foreign trust in accordance with the terms of its withholding agreement, discussed later. Ez forms 2013 Liability for tax. Ez forms 2013   As a withholding agent, you are personally liable for any tax required to be withheld. Ez forms 2013 This liability is independent of the tax liability of the foreign person to whom the payment is made. Ez forms 2013 If you fail to withhold and the foreign payee fails to satisfy its U. Ez forms 2013 S. Ez forms 2013 tax liability, then both you and the foreign person are liable for tax, as well as interest and any applicable penalties. Ez forms 2013   The applicable tax will be collected only once. Ez forms 2013 If the foreign person satisfies its U. Ez forms 2013 S. Ez forms 2013 tax liability, you are not liable for the tax but remain liable for any interest and penalties for failure to withhold. Ez forms 2013 Determination of amount to withhold. Ez forms 2013   You must withhold on the gross amount subject to NRA withholding. Ez forms 2013 You cannot reduce the gross amount by any deductions. Ez forms 2013 However, see Scholarships and Fellowship Grants and Pay for Personal Services Performed , later, for when a deduction for a personal exemption may be allowed. Ez forms 2013   If the determination of the source of the income or the amount subject to tax depends on facts that are not known at the time of payment, you must withhold an amount sufficient to ensure that at least 30% of the amount subsequently determined to be subject to withholding is withheld. Ez forms 2013 In no case, however, should you withhold more than 30% of the total amount paid. Ez forms 2013 Or, you may make a reasonable estimate of the amount from U. Ez forms 2013 S. Ez forms 2013 sources and put a corresponding part of the amount due in escrow until the amount from U. Ez forms 2013 S. Ez forms 2013 sources can be determined, at which time withholding becomes due. Ez forms 2013 When to withhold. Ez forms 2013   Withholding is required at the time you make a payment of an amount subject to withholding. Ez forms 2013 A payment is made to a person if that person realizes income, whether or not there is an actual transfer of cash or other property. Ez forms 2013 A payment is considered made to a person if it is paid for that person's benefit. Ez forms 2013 For example, a payment made to a creditor of a person in satisfaction of that person's debt to the creditor is considered made to the person. Ez forms 2013 A payment also is considered made to a person if it is made to that person's agent. Ez forms 2013   A U. Ez forms 2013 S. Ez forms 2013 partnership should withhold when any distributions that include amounts subject to withholding are made. Ez forms 2013 However, if a foreign partner's distributive share of income subject to withholding is not actually distributed, the U. Ez forms 2013 S. Ez forms 2013 partnership must withhold on the foreign partner's distributive share of the income on the earlier of the date that a Schedule K-1 (Form 1065) is provided or mailed to the partner or the due date for furnishing that schedule. Ez forms 2013 If the distributable amount consists of effectively connected income, see Partnership Withholding on Effectively Connected Income , later. Ez forms 2013 A U. Ez forms 2013 S. Ez forms 2013 trust is required to withhold on the amount includible in the gross income of a foreign beneficiary to the extent the trust's distributable net income consists of an amount subject to withholding. Ez forms 2013 To the extent a U. Ez forms 2013 S. Ez forms 2013 trust is required to distribute an amount subject to withholding but does not actually distribute the amount, it must withhold on the foreign beneficiary's allocable share at the time the income is required to be reported on Form 1042-S. Ez forms 2013 Withholding and Reporting Obligations You are required to report payments subject to NRA withholding on Form 1042-S and to file a tax return on Form 1042. Ez forms 2013 (See Returns Required , later. Ez forms 2013 ) An exception from reporting may apply to individuals who are not required to withhold from a payment and who do not make the payment in the course of their trade or business. Ez forms 2013 Form 1099 reporting and backup withholding. Ez forms 2013    You also may be responsible as a payer for reporting on Form 1099 payments made to a U. Ez forms 2013 S. Ez forms 2013 person. Ez forms 2013 You must withhold 28% (backup withholding rate) from a reportable payment made to a U. Ez forms 2013 S. Ez forms 2013 person that is subject to Form 1099 reporting if any of the following apply. Ez forms 2013 The U. Ez forms 2013 S. Ez forms 2013 person has not provided its taxpayer identification number (TIN) in the manner required. Ez forms 2013 The IRS notifies you that the TIN furnished by the payee is incorrect. Ez forms 2013 There has been a notified payee underreporting. Ez forms 2013 There has been a payee certification failure. Ez forms 2013 In most cases, a TIN must be provided by a U. Ez forms 2013 S. Ez forms 2013 non-exempt recipient on Form W-9, Request for Taxpayer Identification Number and Certification. Ez forms 2013 A payer files a tax return on Form 945, Annual Return of Withheld Federal Income Tax, for backup withholding. Ez forms 2013 You may be required to file Form 1099 and, if appropriate, backup withhold, even if you do not make the payments directly to that U. Ez forms 2013 S. Ez forms 2013 person. Ez forms 2013 For example, you are required to report income paid to a foreign intermediary or flow-through entity that collects for a U. Ez forms 2013 S. Ez forms 2013 person subject to Form 1099 reporting. Ez forms 2013 See Identifying the Payee , later, for more information. Ez forms 2013 Also see Section S. Ez forms 2013 Special Rules for Reporting Payments Made Through Foreign Intermediaries and Foreign Flow-Through Entities on Form 1099 in the General Instructions for Certain Information Returns. Ez forms 2013 Foreign persons who provide Form W-8BEN, Form W-8ECI, or Form W-8EXP (or applicable documentary evidence) are exempt from backup withholding and Form 1099 reporting. Ez forms 2013 Wages paid to employees. Ez forms 2013   If you are the employer of a nonresident alien, you generally must withhold taxes at graduated rates. Ez forms 2013 See Pay for Personal Services Performed , later. Ez forms 2013 Effectively connected income by partnerships. Ez forms 2013   A withholding agent that is a partnership (whether U. Ez forms 2013 S. Ez forms 2013 or foreign) is also responsible for withholding on its income effectively connected with a U. Ez forms 2013 S. Ez forms 2013 trade or business that is allocable to foreign partners. Ez forms 2013 See Partnership Withholding on Effectively Connected Income , later, for more information. Ez forms 2013 U. Ez forms 2013 S. Ez forms 2013 real property interest. Ez forms 2013   A withholding agent also may be responsible for withholding if a foreign person transfers a U. Ez forms 2013 S. Ez forms 2013 real property interest to the agent, or if it is a corporation, partnership, trust, or estate that distributes a U. Ez forms 2013 S. Ez forms 2013 real property interest to a shareholder, partner, or beneficiary that is a foreign person. Ez forms 2013 See U. Ez forms 2013 S. Ez forms 2013 Real Property Interest , later. Ez forms 2013 Persons Subject to NRA Withholding NRA withholding applies only to payments made to a payee that is a foreign person. Ez forms 2013 It does not apply to payments made to U. Ez forms 2013 S. Ez forms 2013 persons. Ez forms 2013 Usually, you determine the payee's status as a U. Ez forms 2013 S. Ez forms 2013 or foreign person based on the documentation that person provides. Ez forms 2013 See Documentation , later. Ez forms 2013 However, if you have received no documentation or you cannot reliably associate all or a part of a payment with documentation, then you must apply certain presumption rules, discussed later. Ez forms 2013 Identifying the Payee In most cases, the payee is the person to whom you make the payment, regardless of whether that person is the beneficial owner of the income. Ez forms 2013 However, there are situations in which the payee is a person other than the one to whom you actually make a payment. Ez forms 2013 U. Ez forms 2013 S. Ez forms 2013 agent of foreign person. Ez forms 2013   If you make a payment to a U. Ez forms 2013 S. Ez forms 2013 person and you have actual knowledge that the U. Ez forms 2013 S. Ez forms 2013 person is receiving the payment as an agent of a foreign person, you must treat the payment as made to the foreign person. Ez forms 2013 However, if the U. Ez forms 2013 S. Ez forms 2013 person is a financial institution, you may treat the institution as the payee provided you have no reason to believe that the institution will not comply with its own obligation to withhold. Ez forms 2013   If the payment is not subject to NRA withholding (for example, gross proceeds from the sales of securities), you must treat the payment as made to a U. Ez forms 2013 S. Ez forms 2013 person and not as a payment to a foreign person. Ez forms 2013 You may be required to report the payment on Form 1099 and, if applicable, backup withhold. Ez forms 2013 Disregarded entities. Ez forms 2013   A business entity that is not a corporation and that has a single owner may be disregarded as an entity separate from its owner (a disregarded entity) for federal tax purposes. Ez forms 2013 The payee of a payment made to a disregarded entity is the owner of the entity. Ez forms 2013   If the owner of the entity is a foreign person, you must apply NRA withholding unless you can treat the foreign owner as a beneficial owner entitled to a reduced rate of withholding. Ez forms 2013   If the owner is a U. Ez forms 2013 S. Ez forms 2013 person, you do not apply NRA withholding. Ez forms 2013 However, you may be required to report the payment on Form 1099 and, if applicable, backup withhold. Ez forms 2013 You may assume that a foreign entity is not a disregarded entity unless you can reliably associate the payment with documentation provided by the owner or you have actual knowledge or reason to know that the foreign entity is a disregarded entity. Ez forms 2013 Flow-Through Entities The payees of payments (other than income effectively connected with a U. Ez forms 2013 S. Ez forms 2013 trade or business) made to a foreign flow-through entity are the owners or beneficiaries of the flow-through entity. Ez forms 2013 This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Ez forms 2013 Income that is, or is deemed to be, effectively connected with the conduct of a U. Ez forms 2013 S. Ez forms 2013 trade or business of a flow-through entity is treated as paid to the entity. Ez forms 2013 All of the following are flow-through entities. Ez forms 2013 A foreign partnership (other than a withholding foreign partnership). Ez forms 2013 A foreign simple or foreign grantor trust (other than a withholding foreign trust). Ez forms 2013 A fiscally transparent entity receiving income for which treaty benefits are claimed. Ez forms 2013 See Fiscally transparent entity , later. Ez forms 2013 In most cases, you treat a payee as a flow-through entity if it provides you with a Form W-8IMY (see Documentation , later) on which it claims such status. Ez forms 2013 You also may be required to treat the entity as a flow-through entity under the presumption rules, discussed later. Ez forms 2013 You must determine whether the owners or beneficiaries of a flow-through entity are U. Ez forms 2013 S. Ez forms 2013 or foreign persons, how much of the payment relates to each owner or beneficiary, and, if the owner or beneficiary is foreign, whether a reduced rate of NRA withholding applies. Ez forms 2013 You make these determinations based on the documentation and other information (contained in a withholding statement) that is associated with the flow-through entity's Form W-8IMY. Ez forms 2013 If you do not have all of the information that is required to reliably associate a payment with a specific payee, you must apply the presumption rules. Ez forms 2013 See Documentation and Presumption Rules , later. Ez forms 2013 Withholding foreign partnerships and withholding foreign trusts are not flow-through entities. Ez forms 2013 Foreign partnerships. Ez forms 2013    A foreign partnership is any partnership that is not organized under the laws of any state of the United States or the District of Columbia or any partnership that is treated as foreign under the income tax regulations. Ez forms 2013 If a foreign partnership is not a withholding foreign partnership, the payees of income are the partners of the partnership, provided the partners are not themselves a flow-through entity or a foreign intermediary. Ez forms 2013 However, the payee is the partnership itself if the partnership is claiming treaty benefits on the basis that it is not fiscally transparent and that it meets all the other requirements for claiming treaty benefits. Ez forms 2013 If a partner is a foreign flow-through entity or a foreign intermediary, you apply the payee determination rules to that partner to determine the payees. Ez forms 2013 Example 1. Ez forms 2013 A nonwithholding foreign partnership has three partners: a nonresident alien individual; a foreign corporation; and a U. Ez forms 2013 S. Ez forms 2013 citizen. Ez forms 2013 You make a payment of U. Ez forms 2013 S. Ez forms 2013 source interest to the partnership. Ez forms 2013 It gives you a Form W-8IMY with which it associates Form W-8BEN from the nonresident alien; Form W-8BEN from the foreign corporation; and Form W-9 from the U. Ez forms 2013 S. Ez forms 2013 citizen. Ez forms 2013 The partnership also gives you a complete withholding statement that enables you to associate a part of the interest payment to each partner. Ez forms 2013 You must treat all three partners as the payees of the interest payment as if the payment were made directly to them. Ez forms 2013 Report the payment to the nonresident alien and the foreign corporation on Forms 1042-S. Ez forms 2013 Report the payment to the U. Ez forms 2013 S. Ez forms 2013 citizen on Form 1099-INT. Ez forms 2013 Example 2. Ez forms 2013 A nonwithholding foreign partnership has two partners: a foreign corporation and a nonwithholding foreign partnership. Ez forms 2013 The second partnership has two partners, both nonresident alien individuals. Ez forms 2013 You make a payment of U. Ez forms 2013 S. Ez forms 2013 source interest to the first partnership. Ez forms 2013 It gives you a valid Form W-8IMY with which it associates a Form W-8BEN from the foreign corporation and a Form W-8IMY from the second partnership. Ez forms 2013 In addition, Forms W-8BEN from the partners are associated with the Form W-8IMY from the second partnership. Ez forms 2013 The Forms W-8IMY from the partnerships have complete withholding statements associated with them. Ez forms 2013 Because you can reliably associate a part of the interest payment with the Form W-8BEN provided by the foreign corporation and the Forms W-8BEN provided by the nonresident alien individual partners as a result of the withholding statements, you must treat them as the payees of the interest. Ez forms 2013 Example 3. Ez forms 2013 You make a payment of U. Ez forms 2013 S. Ez forms 2013 source dividends to a withholding foreign partnership. Ez forms 2013 The partnership has two partners, both foreign corporations. Ez forms 2013 You can reliably associate the payment with a valid Form W-8IMY from the partnership on which it represents that it is a withholding foreign partnership. Ez forms 2013 You must treat the partnership as the payee of the dividends. Ez forms 2013 Foreign simple and grantor trust. Ez forms 2013   A trust is foreign unless it meets both of the following tests. Ez forms 2013 A court within the United States is able to exercise primary supervision over the administration of the trust. Ez forms 2013 One or more U. Ez forms 2013 S. Ez forms 2013 persons have the authority to control all substantial decisions of the trust. Ez forms 2013   In most cases, a foreign simple trust is a foreign trust that is required to distribute all of its income annually. Ez forms 2013 A foreign grantor trust is a foreign trust that is treated as a grantor trust under sections 671 through 679 of the Code. Ez forms 2013   The payees of a payment made to a foreign simple trust are the beneficiaries of the trust. Ez forms 2013 The payees of a payment made to a foreign grantor trust are the owners of the trust. Ez forms 2013 However, the payee is the foreign simple or grantor trust itself if the trust is claiming treaty benefits on the basis that it is not fiscally transparent and that it meets all the other requirements for claiming treaty benefits. Ez forms 2013 If the beneficiaries or owners are themselves flow-through entities or foreign intermediaries, you apply the payee determination rules to that beneficiary or owner to determine the payees. Ez forms 2013 Example. Ez forms 2013 A foreign simple trust has three beneficiaries: two nonresident alien individuals and a U. Ez forms 2013 S. Ez forms 2013 citizen. Ez forms 2013 You make a payment of interest to the foreign trust. Ez forms 2013 It gives you a Form W-8IMY with which it associates Forms W-8BEN from the nonresident aliens and a Form W-9 from the U. Ez forms 2013 S. Ez forms 2013 citizen. Ez forms 2013 The trust also gives you a complete withholding statement that enables you to associate a part of the interest payment with the forms provided by each beneficiary. Ez forms 2013 You must treat all three beneficiaries as the payees of the interest payment as if the payment were made directly to them. Ez forms 2013 Report the payment to the nonresident aliens on Forms 1042-S. Ez forms 2013 Report the payment to the U. Ez forms 2013 S. Ez forms 2013 citizen on Form 1099-INT. Ez forms 2013 Fiscally transparent entity. Ez forms 2013   If a reduced rate of withholding under an income tax treaty is claimed, a flow-through entity includes any entity in which the interest holder must treat the entity as fiscally transparent. Ez forms 2013 The determination of whether an entity is fiscally transparent is made on an item of income basis (that is, the determination is made separately for interest, dividends, royalties, etc. Ez forms 2013 ). Ez forms 2013 The interest holder in an entity makes the determination by applying the laws of the jurisdiction where the interest holder is organized, incorporated, or otherwise considered a resident. Ez forms 2013 An entity is considered to be fiscally transparent for the income to the extent the laws of that jurisdiction require the interest holder to separately take into account on a current basis the interest holder's share of the income, whether or not distributed to the interest holder, and the character and source of the income to the interest holder are determined as if the income was realized directly from the source that paid it to the entity. Ez forms 2013 Subject to the standards of knowledge rules discussed later, you generally make the determination that an entity is fiscally transparent based on a Form W-8IMY provided by the entity. Ez forms 2013   The payees of a payment made to a fiscally transparent entity are the interest holders of the entity. Ez forms 2013 Example. Ez forms 2013 Entity A is a business organization organized under the laws of country X that has an income tax treaty in force with the United States. Ez forms 2013 A has two interest holders, B and C. Ez forms 2013 B is a corporation organized under the laws of country Y. Ez forms 2013 C is a corporation organized under the laws of country Z. Ez forms 2013 Both countries Y and Z have an income tax treaty in force with the United States. Ez forms 2013 A receives royalty income from U. Ez forms 2013 S. Ez forms 2013 sources that is not effectively connected with the conduct of a trade or business in the United States. Ez forms 2013 For U. Ez forms 2013 S. Ez forms 2013 income tax purposes, A is treated as a partnership. Ez forms 2013 Country X treats A as a partnership and requires the interest holders in A to separately take into account on a current basis their respective shares of the income paid to A even if the income is not distributed. Ez forms 2013 The laws of country X provide that the character and source of the income to A's interest holders are determined as if the income was realized directly from the source that paid it to A. Ez forms 2013 Accordingly, A is fiscally transparent in its jurisdiction, country X. Ez forms 2013 B and C are not fiscally transparent under the laws of their respective countries of incorporation. Ez forms 2013 Country Y requires B to separately take into account on a current basis B's share of the income paid to A, and the character and source of the income to B is determined as if the income was realized directly from the source that paid it to A. Ez forms 2013 Accordingly, A is fiscally transparent for that income under the laws of country Y, and B is treated as deriving its share of the U. Ez forms 2013 S. Ez forms 2013 source royalty income for purposes of the U. Ez forms 2013 S. Ez forms 2013 -Y income tax treaty. Ez forms 2013 Country Z, on the other hand, treats A as a corporation and does not require C to take into account its share of A's income on a current basis whether or not distributed. Ez forms 2013 Therefore, A is not treated as fiscally transparent under the laws of country Z. Ez forms 2013 Accordingly, C is not treated as deriving its share of the U. Ez forms 2013 S. Ez forms 2013 source royalty income for purposes of the U. Ez forms 2013 S. Ez forms 2013 -Z income tax treaty. Ez forms 2013 Foreign Intermediaries In most cases, if you make payments to a foreign intermediary, the payees are the persons for whom the foreign intermediary collects the payment, such as account holders or customers, not the intermediary itself. Ez forms 2013 This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Ez forms 2013 You may, however, treat a qualified intermediary that has assumed primary withholding responsibility for a payment as the payee, and you are not required to withhold. Ez forms 2013 An intermediary is a custodian, broker, nominee, or any other person that acts as an agent for another person. Ez forms 2013 A foreign intermediary is either a qualified intermediary or a nonqualified intermediary. Ez forms 2013 In most cases, you determine whether an entity is a qualified intermediary or a nonqualified intermediary based on the representations the intermediary makes on Form W-8IMY. Ez forms 2013 You must determine whether the customers or account holders of a foreign intermediary are U. Ez forms 2013 S. Ez forms 2013 or foreign persons and, if the account holder or customer is foreign, whether a reduced rate of NRA withholding applies. Ez forms 2013 You make these determinations based on the foreign intermediary's Form W-8IMY and associated information and documentation. Ez forms 2013 If you do not have all of the information or documentation that is required to reliably associate a payment with a payee, you must apply the presumption rules. Ez forms 2013 See Documentation and Presumption Rules , later. Ez forms 2013 Nonqualified intermediary. Ez forms 2013   A nonqualified intermediary (NQI) is any intermediary that is a foreign person and that is not a qualified intermediary. Ez forms 2013 The payees of a payment made to an NQI are the customers or account holders on whose behalf the NQI is acting. Ez forms 2013 Example. Ez forms 2013 You make a payment of interest to a foreign bank that is a nonqualified intermediary. Ez forms 2013 The bank gives you a Form W-8IMY and the Forms W-8BEN of two foreign persons, and a Form W-9 from a U. Ez forms 2013 S. Ez forms 2013 person for whom the bank is collecting the payments. Ez forms 2013 The bank also associates with its Form W-8IMY a withholding statement on which it allocates the interest payment to each account holder and provides all other information required to be on the withholding statement. Ez forms 2013 The account holders are the payees of the interest payment. Ez forms 2013 You should report the part of the interest paid to the two foreign persons on Forms 1042-S and the part paid to the U. Ez forms 2013 S. Ez forms 2013 person on Form 1099-INT. Ez forms 2013 Qualified intermediary. Ez forms 2013   A qualified intermediary (QI) is any foreign intermediary (or foreign branch of a U. Ez forms 2013 S. Ez forms 2013 intermediary) that has entered into a qualified intermediary withholding agreement (discussed later) with the IRS. Ez forms 2013 You may treat a QI as a payee to the extent the QI assumes primary withholding responsibility or primary Form 1099 reporting and backup withholding responsibility for a payment. Ez forms 2013 In this situation, the QI is required to withhold the tax. Ez forms 2013 You can determine whether a QI has assumed responsibility from the Form W-8IMY provided by the QI. Ez forms 2013   A payment to a QI to the extent it does not assume primary NRA withholding responsibility is considered made to the person on whose behalf the QI acts. Ez forms 2013 If a QI does not assume Form 1099 reporting and backup withholding responsibility, you must report on Form 1099 and, if applicable, backup withhold as if you were making the payment directly to the U. Ez forms 2013 S. Ez forms 2013 person. Ez forms 2013 Branches of financial institutions. Ez forms 2013   Branches of financial institutions are not permitted to operate as QIs if they are located outside of countries having approved “know-your-customer” (KYC) rules. Ez forms 2013 The countries with approved KYC rules are listed on IRS. Ez forms 2013 gov. Ez forms 2013 QI withholding agreement. Ez forms 2013   Foreign financial institutions and foreign branches of U. Ez forms 2013 S. Ez forms 2013 financial institutions can enter into an agreement with the IRS to be a qualified intermediary. Ez forms 2013   A QI is entitled to certain simplified withholding and reporting rules. Ez forms 2013 In general, there are three major areas whereby intermediaries with QI status are afforded such simplified treatment. Ez forms 2013   To apply for QI status, complete Form 14345, Qualified Intermediary Application, and Form SS-4, Application for Employer Identification Number. Ez forms 2013 These forms, and the procedures required to obtain a QI withholding agreement are available at www. Ez forms 2013 irs. Ez forms 2013 gov/Businesses/Corporations/Qualified-Intermediaries-(QI). Ez forms 2013 Documentation. Ez forms 2013   A QI is not required to forward documentation obtained from foreign account holders to the U. Ez forms 2013 S. Ez forms 2013 withholding agent from whom the QI receives a payment of U. Ez forms 2013 S. Ez forms 2013 source income. Ez forms 2013 The QI maintains such documentation at its location and provides the U. Ez forms 2013 S. Ez forms 2013 withholding agent with withholding rate pools. Ez forms 2013 A withholding rate pool is a payment of a single type of income that is subject to a single rate of withholding. Ez forms 2013   A QI is required to provide the U. Ez forms 2013 S. Ez forms 2013 withholding agent with information regarding U. Ez forms 2013 S. Ez forms 2013 persons subject to Form 1099 information reporting unless the QI assumes the primary obligation to do Form 1099 reporting and backup withholding. Ez forms 2013   If a QI obtains documentary evidence under the “know-your-customer” rules that apply to the QI under local law, and the documentary evidence is of a type specified in an attachment to the QI agreement, the documentary evidence remains valid until there is a change in circumstances or the QI knows the information is incorrect. Ez forms 2013 This indefinite validity period rule does not apply to Forms W-8 or to documentary evidence that is not of the type specified in the attachment to the agreement. Ez forms 2013 Form 1042-S reporting. Ez forms 2013   A QI is permitted to report payments made to its direct foreign account holders on a pooled basis rather than reporting payments to each direct account holder specifically. Ez forms 2013 Pooled basis reporting is not available for payments to certain account holders, such as a nonqualified intermediary or a flow-through entity (discussed earlier). Ez forms 2013 Collective refund procedures. Ez forms 2013   A QI may seek a refund on behalf of its direct account holders. Ez forms 2013 The direct account holders, therefore, are not required to file returns with the IRS to obtain refunds, but rather may obtain them from the QI. Ez forms 2013 U. Ez forms 2013 S. Ez forms 2013 branches of foreign banks and foreign insurance companies. Ez forms 2013   Special rules apply to a U. Ez forms 2013 S. Ez forms 2013 branch of a foreign bank subject to Federal Reserve Board supervision or a foreign insurance company subject to state regulatory supervision. Ez forms 2013 If you agree to treat the branch as a U. Ez forms 2013 S. Ez forms 2013 person, you may treat the branch as a U. Ez forms 2013 S. Ez forms 2013 payee for a payment subject to NRA withholding provided you receive a Form W-8IMY from the U. Ez forms 2013 S. Ez forms 2013 branch on which the agreement is evidenced. Ez forms 2013 If you treat the branch as a U. Ez forms 2013 S. Ez forms 2013 payee, you are not required to withhold. Ez forms 2013 Even though you agree to treat the branch as a U. Ez forms 2013 S. Ez forms 2013 person, you must report the payment on Form 1042-S. Ez forms 2013   A financial institution organized in a U. Ez forms 2013 S. Ez forms 2013 possession is treated as a U. Ez forms 2013 S. Ez forms 2013 branch. Ez forms 2013 The special rules discussed in this section apply to a possessions financial institution. Ez forms 2013   If you are paying a U. Ez forms 2013 S. Ez forms 2013 branch an amount that is not subject to NRA withholding, treat the payment as made to a foreign person, irrespective of any agreement to treat the branch as a U. Ez forms 2013 S. Ez forms 2013 person for amounts subject to NRA withholding. Ez forms 2013 Consequently, amounts not subject to NRA withholding that are paid to a U. Ez forms 2013 S. Ez forms 2013 branch are not subject to Form 1099 reporting or backup withholding. Ez forms 2013   Alternatively, a U. Ez forms 2013 S. Ez forms 2013 branch may provide you with a Form W-8IMY with which it associates the documentation of the persons on whose behalf it acts. Ez forms 2013 In this situation, the payees are the persons on whose behalf the branch acts provided you can reliably associate the payment with valid documentation from those persons. Ez forms 2013 See Nonqualified Intermediaries under  Documentation, later. Ez forms 2013   If the U. Ez forms 2013 S. Ez forms 2013 branch does not provide you with a Form W-8IMY, then you should treat a payment subject to NRA withholding as made to the foreign person of which the branch is a part and the income as effectively connected with the conduct of a trade or business in the United States. Ez forms 2013 Withholding foreign partnership and foreign trust. Ez forms 2013   A withholding foreign partnership (WP) is any foreign partnership that has entered into a WP withholding agreement with the IRS and is acting in that capacity. Ez forms 2013 A withholding foreign trust (WT) is a foreign simple or grantor trust that has entered into a WT withholding agreement with the IRS and is acting in that capacity. Ez forms 2013   A WP or WT may act in that capacity only for payments of amounts subject to NRA withholding that are distributed to, or included in the distributive share of, its direct partners, beneficiaries, or owners. Ez forms 2013 A WP or WT acting in that capacity must assume NRA withholding responsibility for these amounts. Ez forms 2013 You may treat a WP or WT as a payee if it has provided you with documentation (discussed later) that represents that it is acting as a WP or WT for such amounts. Ez forms 2013 WP and WT withholding agreements. Ez forms 2013   The WP and WT withholding agreements and the application procedures for the agreements are in Revenue Procedure 2003-64. Ez forms 2013 Also see the following items. Ez forms 2013 Revenue Procedure 2004-21. Ez forms 2013 Revenue Procedure 2005-77. Ez forms 2013 Employer identification number (EIN). Ez forms 2013   A completed Form SS-4 must be submitted with the application for being a WP or WT. Ez forms 2013 The WP or WT will be assigned a WP-EIN or WT-EIN to be used only when acting in that capacity. Ez forms 2013 Documentation. Ez forms 2013   A WP or WT must provide you with a Form W-8IMY that certifies that the WP or WT is acting in that capacity and a written statement identifying the amounts for which it is so acting. Ez forms 2013 The statement is not required to contain withholding rate pool information or any information relating to the identity of a direct partner, beneficiary, or owner. Ez forms 2013 The Form W-8IMY must contain the WP-EIN or WT-EIN. Ez forms 2013 Foreign Persons A payee is subject to NRA withholding only if it is a foreign person. Ez forms 2013 A foreign person includes a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, foreign estate, and any other person that is not a U. Ez forms 2013 S. Ez forms 2013 person. Ez forms 2013 It also includes a foreign branch of a U. Ez forms 2013 S. Ez forms 2013 financial institution if the foreign branch is a qualified intermediary. Ez forms 2013 In most cases, the U. Ez forms 2013 S. Ez forms 2013 branch of a foreign corporation or partnership is treated as a foreign person. Ez forms 2013 Nonresident alien. Ez forms 2013   A nonresident alien is an individual who is not a U. Ez forms 2013 S. Ez forms 2013 citizen or a resident alien. Ez forms 2013 A resident of a foreign country under the residence article of an income tax treaty is a nonresident alien individual for purposes of withholding. Ez forms 2013 Married to U. Ez forms 2013 S. Ez forms 2013 citizen or resident alien. Ez forms 2013   Nonresident alien individuals married to U. Ez forms 2013 S. Ez forms 2013 citizens or resident aliens may choose to be treated as resident aliens for certain income tax purposes. Ez forms 2013 However, these individuals are still subject to the NRA withholding rules that apply to nonresident aliens for all income except wages. Ez forms 2013 Wages paid to these individuals are subject to graduated withholding. Ez forms 2013 See Wages Paid to Employees—Graduated Withholding . Ez forms 2013 Resident alien. Ez forms 2013   A resident alien is an individual who is not a citizen or national of the United States and who meets either the green card test or the substantial presence test for the calendar year. Ez forms 2013 Green card test. Ez forms 2013 An alien is a resident alien if the individual was a lawful permanent resident of the United States at any time during the calendar year. Ez forms 2013 This is known as the green card test because these aliens hold immigrant visas (also known as green cards). Ez forms 2013 Substantial presence test. Ez forms 2013 An alien is considered a resident alien if the individual meets the substantial presence test for the calendar year. Ez forms 2013 Under this test, the individual must be physically present in the United States on at least: 31 days during the current calendar year, and 183 days during the current year and the 2 preceding years, counting all the days of physical presence in the current year, but only 1/3 the number of days of presence in the first preceding year, and only 1/6 the number of days in the second preceding year. Ez forms 2013   In most cases, the days the alien is in the United States as a teacher, student, or trainee on an “F,” “J,” “M,” or “Q” visa are not counted. Ez forms 2013 This exception is for a limited period of time. Ez forms 2013   For more information on resident and nonresident status, the tests for residence, and the exceptions to them, see Publication 519. Ez forms 2013 Note. Ez forms 2013   If your employee is late in notifying you that his or her status changed from nonresident alien to resident alien, you may have to make an adjustment to Form 941 if that employee was exempt from withholding of social security and Medicare taxes as a nonresident alien. Ez forms 2013 For more information on making adjustments, see chapter 13 of Publication 15 (Circular E). Ez forms 2013 Resident of a U. Ez forms 2013 S. Ez forms 2013 possession. Ez forms 2013   A bona fide resident of Puerto Rico, the U. Ez forms 2013 S. Ez forms 2013 Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), or American Samoa who is not a U. Ez forms 2013 S. Ez forms 2013 citizen or a U. Ez forms 2013 S. Ez forms 2013 national is treated as a nonresident alien for the withholding rules explained here. Ez forms 2013 A bona fide resident of a possession is someone who: Meets the presence test, Does not have a tax home outside the possession, and Does not have a closer connection to the United States or to a foreign country than to the possession. Ez forms 2013   For more information, see Publication 570, Tax Guide for Individuals With Income From U. Ez forms 2013 S. Ez forms 2013 Possessions. Ez forms 2013 Foreign corporations. Ez forms 2013   A foreign corporation is one that does not fit the definition of a domestic corporation. Ez forms 2013 A domestic corporation is one that was created or organized in the United States or under the laws of the United States, any of its states, or the District of Columbia. Ez forms 2013 Guam or Northern Mariana Islands corporations. Ez forms 2013   A corporation created or organized in, or under the laws of, Guam or the CNMI is not considered a foreign corporation for the purpose of withholding tax for the tax year if: At all times during the tax year less than 25% in value of the corporation's stock is owned, directly or indirectly, by foreign persons; and At least 20% of the corporation's gross income is derived from sources within Guam or the CNMI for the 3-year period ending with the close of the preceding tax year of the corporation (or the period the corporation has been in existence, if less). Ez forms 2013 Note. Ez forms 2013   The provisions discussed below under U. Ez forms 2013 S. Ez forms 2013 Virgin Islands and American Samoa corporations will apply to Guam or CNMI corporations when an implementing agreement is in effect between the United States and that possession. Ez forms 2013 U. Ez forms 2013 S. Ez forms 2013 Virgin Islands and American Samoa corporations. Ez forms 2013   A corporation created or organized in, or under the laws of, the U. Ez forms 2013 S. Ez forms 2013 Virgin Islands or American Samoa is not considered a foreign corporation for the purposes of withholding tax for the tax year if: At all times during the tax year less than 25% in value of the corporation's stock is owned, directly or indirectly, by foreign persons, At least 65% of the corporation's gross income is effectively connected with the conduct of a trade or business in the U. Ez forms 2013 S. Ez forms 2013 Virgin Islands, American Samoa, Guam, the CNMI, or the United States for the 3-year period ending with the close of the tax year of the corporation (or the period the corporation or any predecessor has been in existence, if less), and No substantial part of the income of the corporation is used, directly or indirectly, to satisfy obligations to a person who is not a bona fide resident of the U. Ez forms 2013 S. Ez forms 2013 Virgin Islands, American Samoa, Guam, the CNMI, or the United States. Ez forms 2013 Foreign private foundations. Ez forms 2013   A private foundation that was created or organized under the laws of a foreign country is a foreign private foundation. Ez forms 2013 Gross investment income from sources within the United States paid to a qualified foreign private foundation is subject to NRA withholding at a 4% rate (unless exempted by a treaty) rather than the ordinary statutory 30% rate. Ez forms 2013 Other foreign organizations, associations, and charitable institutions. Ez forms 2013   An organization may be exempt from income tax under section 501(a) of the Internal Revenue Code even if it was formed under foreign law. Ez forms 2013 In most cases, you do not have to withhold tax on payments of income to these foreign tax-exempt organizations unless the IRS has determined that they are foreign private foundations. Ez forms 2013   Payments to these organizations, however, must be reported on Form 1042-S, even though no tax is withheld. Ez forms 2013   You must withhold tax on the unrelated business income (as described in Publication 598, Tax on Unrelated Business Income of Exempt Organizations) of foreign tax-exempt organizations in the same way that you would withhold tax on similar income of nonexempt organizations. Ez forms 2013 U. Ez forms 2013 S. Ez forms 2013 branches of foreign persons. Ez forms 2013   In most cases, a payment to a U. Ez forms 2013 S. Ez forms 2013 branch of a foreign person is a payment made to the foreign person. Ez forms 2013 However, you may treat payments to U. Ez forms 2013 S. Ez forms 2013 branches of foreign banks and foreign insurance companies (discussed earlier) that are subject to U. Ez forms 2013 S. Ez forms 2013 regulatory supervision as payments made to a U. Ez forms 2013 S. Ez forms 2013 person, if you and the U. Ez forms 2013 S. Ez forms 2013 branch have agreed to do so, and if their agreement is evidenced by a withholding certificate, Form W-8IMY. Ez forms 2013 For this purpose, a financial institution organized under the laws of a U. Ez forms 2013 S. Ez forms 2013 possession is treated as a U. Ez forms 2013 S. Ez forms 2013 branch. Ez forms 2013 Documentation In most cases, you must withhold 30% from the gross amount paid to a foreign payee unless you can reliably associate the payment with valid documentation that establishes either of the following. Ez forms 2013 The payee is a U. Ez forms 2013 S. Ez forms 2013 person. Ez forms 2013 The payee is a foreign person that is the beneficial owner of the income and is entitled to a reduced rate of withholding. Ez forms 2013 In most cases, you must get the documentation before you make the payment. Ez forms 2013 The documentation is not valid if you know, or have reason to know, that it is unreliable or incorrect. Ez forms 2013 See Standards of Knowledge , later. Ez forms 2013 If you cannot reliably associate a payment with valid documentation, you must use the presumption rules discussed later. Ez forms 2013 For example, if you do not have documentation or you cannot determine the part of a payment that is allocable to specific documentation, you must use the presumption rules. Ez forms 2013 The specific types of documentation are discussed in this section. Ez forms 2013 However, see Withholding on Specific Income , later, as well as the instructions to the particular forms. Ez forms 2013 As the withholding agent, you also may want to see the Instructions for the Requester of Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY. Ez forms 2013 Section 1446 withholding. Ez forms 2013   Under section 1446 of the Code, a partnership must withhold tax on its effectively connected income allocable to a foreign partner. Ez forms 2013 In most cases, a partnership determines if a partner is a foreign partner and the partner's tax classification based on the withholding certificate provided by the partner. Ez forms 2013 This is the same documentation that is filed for NRA withholding, but may require additional information as discussed under each of the forms in this section. Ez forms 2013 Joint owners. Ez forms 2013    If you make a payment to joint owners, you need to get documentation from each owner. Ez forms 2013 Form W-9. Ez forms 2013   In most cases, you can treat the payee as a U. Ez forms 2013 S. Ez forms 2013 person if the payee gives you a Form W-9. Ez forms 2013 The Form W-9 can be used only by a U. Ez forms 2013 S. Ez forms 2013 person and must contain the payee's taxpayer identification number (TIN). Ez forms 2013 If there is more than one owner, you may treat the total amount as paid to a U. Ez forms 2013 S. Ez forms 2013 person if any one of the owners gives you a Form W-9. Ez forms 2013 See U. Ez forms 2013 S. Ez forms 2013 Taxpayer Identification Numbers , later. Ez forms 2013 U. Ez forms 2013 S. Ez forms 2013 persons are not subject to NRA withholding, but may be subject to Form 1099 reporting and backup withholding. Ez forms 2013 Form W-8. Ez forms 2013   In most cases, a foreign payee of the income should give you a form in the Form W-8 series. Ez forms 2013 Until further notice, you can rely upon Forms W-8 that contain a P. Ez forms 2013 O. Ez forms 2013 box as a permanent residence address provided you do not know, or have reason to know, that the person providing the form is a U. Ez forms 2013 S. Ez forms 2013 person and that a street address is available. Ez forms 2013 You may rely on Forms W-8 for which there is a U. Ez forms 2013 S. Ez forms 2013 mailing address provided you received the form prior to December 31, 2001. Ez forms 2013   If certain requirements are met, the foreign person can give you documentary evidence, rather than a Form W-8. Ez forms 2013 You can rely on documentary evidence in lieu of a Form W-8 for a payment made in a U. Ez forms 2013 S. Ez forms 2013 possession. Ez forms 2013 Other documentation. Ez forms 2013   Other documentation may be required to claim an exemption from, or a reduced rate of, withholding on pay for personal services. Ez forms 2013 The nonresident alien individual may have to give you a Form W-4 or a Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual. Ez forms 2013 These forms are discussed in Pay for Personal Services Performed under Withholding on Specific Income. Ez forms 2013 Beneficial Owners If all the appropriate requirements have been established on a Form W-8BEN, W-8ECI, W-8EXP or, if applicable, on documentary evidence, you may treat the payee as a foreign beneficial owner. Ez forms 2013 Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. Ez forms 2013   This form is used by a foreign person to: Establish foreign status; Claim that such person is the beneficial owner of the income for which the form is being furnished or a partner in a partnership subject to section 1446 withholding; and If applicable, claim a reduced rate of, or exemption from, withholding under an income tax treaty. Ez forms 2013   Form W-8BEN also may be used to claim that the foreign person is exempt from Form 1099 reporting and backup withholding for income that is not subject to NRA withholding. Ez forms 2013 For example, a foreign person may provide a Form W-8BEN to a broker to establish that the gross proceeds from the sale of securities are not subject to Form 1099 reporting or backup withholding. Ez forms 2013 Claiming treaty benefits. Ez forms 2013   You may apply a reduced rate of withholding to a foreign person that provides a Form W-8BEN claiming a reduced rate of withholding under an income tax treaty only if the person provides a U. Ez forms 2013 S. Ez forms 2013 TIN and certifies that: It is a resident of a treaty country; It is the beneficial owner of the income; If it is an entity, it derives the income within the meaning of section 894 of the Internal Revenue Code (it is not fiscally transparent); and It meets any limitation on benefits provision contained in the treaty, if applicable. Ez forms 2013   If the foreign beneficial owner claiming a treaty benefit is related to you, the foreign beneficial owner also must certify on Form W-8BEN that it will file Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), if the amount subject to NRA withholding received during a calendar year exceeds, in the aggregate, $500,000. Ez forms 2013   An entity derives income for which it is claiming treaty benefits only if the entity is not treated as fiscally transparent for that income. Ez forms 2013 See Fiscally transparent entity discussed earlier under Flow-Through Entities. Ez forms 2013   Limitations on benefits provisions generally prohibit third country residents from obtaining treaty benefits. Ez forms 2013 For example, a foreign corporation may not be entitled to a reduced rate of withholding unless a minimum percentage of its owners are citizens or residents of the United States or the treaty country. Ez forms 2013   The exemptions from, or reduced rates of, U. Ez forms 2013 S. Ez forms 2013 tax vary under each treaty. Ez forms 2013 You must check the provisions of the tax treaty that apply. Ez forms 2013 Tables at the end of this publication show the countries with which the United States has income tax treaties and the rates of withholding that apply in cases where all conditions of the particular treaty articles are satisfied. Ez forms 2013   If you know, or have reason to know, that an owner of income is not eligible for treaty benefits claimed, you must not apply the treaty rate. Ez forms 2013 You are not, however, responsible for misstatements on a Form W-8, documentary evidence, or statements accompanying documentary evidence for which you did not have actual knowledge, or reason to know, that the statements were incorrect. Ez forms 2013 Exceptions to TIN requirement. Ez forms 2013   A foreign person does not have to provide a TIN to claim a reduced rate of withholding under a treaty if the requirements for the following exceptions are met. Ez forms 2013 Income from marketable securities (discussed next). Ez forms 2013 Unexpected payments to an individual (discussed under U. Ez forms 2013 S. Ez forms 2013 Taxpayer Identification Numbers ). Ez forms 2013 Marketable securities. Ez forms 2013   A Form W-8BEN provided to claim treaty benefits does not need a U. Ez forms 2013 S. Ez forms 2013 TIN if the foreign beneficial owner is claiming the benefits on income from marketable securities. Ez forms 2013 For this purpose, income from a marketable security consists of the following items. Ez forms 2013 Dividends and interest from stocks and debt obligations that are actively traded. Ez forms 2013 Dividends from any redeemable security issued by an investment company registered under the Investment Company Act of 1940 (mutual fund). Ez forms 2013 Dividends, interest, or royalties from units of beneficial interest in a unit investment trust that are (or were upon issuance) publicly offered and are registered with the SEC under the Securities Act of 1933. Ez forms 2013 Income related to loans of any of the above securities. Ez forms 2013 Offshore accounts. Ez forms 2013   If a payment is made outside the United States to an offshore account, a payee may give you documentary evidence, rather than Form W-8BEN. Ez forms 2013   In most cases, a payment is made outside the United States if you complete the acts necessary to effect the payment outside the United States. Ez forms 2013 However, an amount paid by a bank or other financial institution on a deposit or account usually will be treated as paid at the branch or office where the amount is credited. Ez forms 2013 An offshore account is an account maintained at an office or branch of a U. Ez forms 2013 S. Ez forms 2013 or foreign bank or other financial institution at any location outside the United States. Ez forms 2013   You may rely on documentary evidence given to you by a nonqualified intermediary or a flow-through entity with its Form W-8IMY. Ez forms 2013 This rule applies even though you make the payment to a nonqualified intermediary or flow-through entity in the United States. Ez forms 2013 In most cases, the nonqualified intermediary or flow-through entity that gives you documentary evidence also will have to give you a withholding statement, discussed later. Ez forms 2013 Documentary evidence. Ez forms 2013   You may apply a reduced rate of withholding to income from marketable securities (discussed earlier) paid outside the United States to an offshore account if the beneficial owner gives you documentary evidence in place of a Form W-8BEN. Ez forms 2013 To claim treaty benefits, the documentary evidence must be one of the following: A certificate of residence that: Is issued by a tax official of the treaty country of which the foreign beneficial owner claims to be a resident, States that the person has filed its most recent income tax return as a resident of that country, and Is issued within 3 years prior to being presented to you. Ez forms 2013 Documentation for an individual that: Includes the individual's name, address, and photograph, Is an official document issued by an authorized governmental body, and Is issued no more than 3 years prior to being presented to you. Ez forms 2013 Documentation for an entity that: Includes the name of the entity, Includes the address of its principal office in the treaty country, and Is an official document issued by an authorized governmental body. Ez forms 2013 In addition to the documentary evidence, a foreign beneficial owner that is an entity must provide a statement that it derives the income for which it claims treaty benefits and that it meets one or more of the conditions set forth in a limitation on benefits article, if any, (or similar provision) contained in the applicable treaty. Ez forms 2013 Form W-8ECI, Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States. Ez forms 2013   This form is used by a foreign person to: Establish foreign status, Claim that such person is the beneficial owner of the income for which the form is being furnished, and Claim that the income is effectively connected with the conduct of a trade or business in the United States. Ez forms 2013 (See Effectively Connected Income , later. Ez forms 2013 )   Effectively connected income for which a valid Form W-8ECI has been provided is generally not subject to NRA withholding. Ez forms 2013   If a partner submits this form to a partnership, the income claimed to be effectively connected with the conduct of a U. Ez forms 2013 S. Ez forms 2013 trade or business is subject to withholding under section 1446. Ez forms 2013 If the partner has made, or will make, an election under section 871(d) or 882(d), the partner must submit Form W-8ECI, and attach a copy of the election, or a statement of intent to elect, to the form. Ez forms 2013    If the partner's only effectively connected income is the income allocated from the partnership and the partner is not making the election under section 871(d) or 882(d), the partner should provide Form W-8BEN to the partnership. Ez forms 2013 Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding. Ez forms 2013   This form is used by a foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U. Ez forms 2013 S. Ez forms 2013 possession to: Establish foreign status, Claim that such person is the beneficial owner of the income for which the form is being furnished, and Claim a reduced rate of, or an exemption from, withholding as such an entity. Ez forms 2013   If the government or organization is a partner in a partnership carrying on a trade or business in the United States, the effectively connected income allocable to the partner is subject to withholding under section 1446. Ez forms 2013   See Foreign Governments and Certain Other Foreign Organizations , later. Ez forms 2013 Foreign Intermediaries and Foreign Flow-Through Entities Payments made to a foreign intermediary or foreign flow-through entity are treated as made to the payees on whose behalf the intermediary or entity acts. Ez forms 2013 The Form W-8IMY provided by a foreign intermediary or flow-through entity must be accompanied by additional information for you to be able to reliably associate the payment with a payee. Ez forms 2013 The additional information required depends on the type of intermediary or flow-through entity and the extent of the withholding responsibilities it assumes. Ez forms 2013 Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U. Ez forms 2013 S. Ez forms 2013 Branches for United States Tax Withholding. Ez forms 2013   This form is used by foreign intermediaries and foreign flow-through entities, as well as certain U. Ez forms 2013 S. Ez forms 2013 branches, to: Represent that a foreign person is a qualified intermediary or nonqualified intermediary, Represent, if applicable, that the qualified intermediary is assuming primary NRA withholding responsibility and/or primary Form 1099 reporting and backup withholding responsibility, Represent that a foreign partnership or a foreign simple or grantor trust is a withholding foreign partnership or a withholding foreign trust, Represent that a foreign flow-through entity is a nonwithholding foreign partnership, or a nonwithholding foreign trust and that the income is not effectively connected with the conduct of a trade or business in the United States, Represent that the provider is a U. Ez forms 2013 S. Ez forms 2013 branch of a foreign bank or insurance company and either is agreeing to be treated as a U. Ez forms 2013 S. Ez forms 2013 person or is transmitting documentation of the persons on whose behalf it is acting, or Represent that, for purposes of section 1446, it is an upper-tier foreign partnership or a foreign grantor trust and that the form is being used to transmit the required documentation. Ez forms 2013 For information on qualifying as an upper-tier foreign partnership, see Regulations section 1. Ez forms 2013 1446-5. Ez forms 2013 Qualified Intermediaries In most cases, a QI is any foreign intermediary that has entered into a QI withholding agreement (discussed earlier) with the IRS. Ez forms 2013 A foreign intermediary that has received a QI employer identification number (QI-EIN) may represent on Form W-8IMY that it is a QI before it receives a fully executed agreement. Ez forms 2013 The intermediary can claim that it is a QI until the IRS revokes its QI-EIN. Ez forms 2013 The IRS will revoke a QI-EIN if the QI agreement is not executed and returned to the IRS within a reasonable period of time after the agreement was sent to the intermediary for signature. Ez forms 2013 Responsibilities. Ez forms 2013   Payments made to a QI that does not assume NRA withholding responsibility are treated as paid to its account holders and customers. Ez forms 2013 However, a QI is not required to provide you with documentation it obtains from its foreign account holders and customers. Ez forms 2013 Instead, it provides you with a withholding statement that contains withholding rate pool information. Ez forms 2013 A withholding rate pool is a payment of a single type of income, determined in accordance with the categories of income reported on Form 1042-S that is subject to a single rate of withholding. Ez forms 2013 A qualified intermediary is required to provide you with information regarding U. Ez forms 2013 S. Ez forms 2013 persons subject to Form 1099 reporting and to provide you withholding rate pool information separately for each such U. Ez forms 2013 S. Ez forms 2013 person unless it has assumed Form 1099 reporting and backup withholding responsibility. Ez forms 2013 For the alternative procedure for providing rate pool information for U. Ez forms 2013 S. Ez forms 2013 non-exempt persons, see the Form W-8IMY instructions. Ez forms 2013   The withholding statement must: Designate those accounts for which it acts as a qualified intermediary, Designate those accounts for which it assumes primary NRA withholding responsibility and/or primary Form 1099 and backup withholding responsibility, and Provide sufficient information for you to allocate the payment to a withholding rate pool. Ez forms 2013   The extent to which you must have withholding rate pool information depends on the withholding and reporting obligations assumed by the QI. Ez forms 2013 Primary responsibility not assumed. Ez forms 2013   If a QI does not assume primary NRA withholding responsibility or primary Form 1099 reporting and backup withholding responsibility for the payment, you can reliably associate the payment with valid documentation only to the extent you can reliably determine the part of the payment that relates to each withholding rate pool for foreign payees. Ez forms 2013 Unless the alternative procedure applies, the qualified intermediary must provide you with a separate withholding rate pool for each U. Ez forms 2013 S. Ez forms 2013 person subject to Form 1099 reporting and/or backup withholding. Ez forms 2013 The QI must provide a Form W-9 or, in the absence of the form, the name, address, and TIN, if available, for such person. Ez forms 2013 Primary NRA withholding responsibility assumed. Ez forms 2013   If you make a payment to a QI that assumes primary NRA withholding responsibility (but not primary Form 1099 reporting and backup withholding responsibility), you can reliably associate the payment with valid documentation only to the extent you can reliably determine the part of the payment that relates to the withholding rate pool for which the QI assumes primary NRA withholding responsibility and the part of the payment attributable to withholding rate pools for each U. Ez forms 2013 S. Ez forms 2013 person, unless the alternative procedure applies, subject to Form 1099 reporting and/or backup withholding. Ez forms 2013 The QI must provide a Form W-9 or, in the absence of the form, the name, address, and TIN, if available, for such person. Ez forms 2013 Primary NRA and Form 1099 responsibility assumed. Ez forms 2013   If you make a payment to a QI that assumes both primary NRA withholding responsibility and primary Form 1099 reporting and backup withholding responsibility, you can reliably associate a payment with valid documentation provided that you receive a valid Form W-8IMY. Ez forms 2013 It is not necessary to associate the payment with withholding rate pools. Ez forms 2013 Example. Ez forms 2013 You make a payment of dividends to a QI. Ez forms 2013 It has five customers: two are foreign persons who have provided documentation entitling them to a 15% rate of withholding on dividends; two are foreign persons subject to a 30% rate of withholding on dividends; and one is a U. Ez forms 2013 S. Ez forms 2013 individual who provides it with a Form W-9. Ez forms 2013 Each customer is entitled to 20% of the dividend payment. Ez forms 2013 The QI does not assume any primary withholding responsibility. Ez forms 2013 The QI gives you a Form W-8IMY with which it associates the Form W-9 and a withholding statement that allocates 40% of the dividend to a 15% withholding rate pool, 40% to a 30% withholding rate pool, and 20% to the U. Ez forms 2013 S. Ez forms 2013 individual. Ez forms 2013 You should report on Forms 1042-S 40% of the payment as made to a 15% rate dividend pool and 40% of the payment as made to a 30% rate dividend pool. Ez forms 2013 The part of the payment allocable to the U. Ez forms 2013 S. Ez forms 2013 individual (20%) is reportable on Form 1099-DIV. Ez forms 2013 Smaller partnerships and trusts. Ez forms 2013   A QI may apply special rules to a smaller partnership or trust (Joint Account Provision) only if the partnership or trust meets the following conditions. Ez forms 2013 It is a foreign partnership or foreign simple or grantor trust. Ez forms 2013 It is a direct account holder of the QI. Ez forms 2013 It does not have any partner, beneficiary, or owner that is a U. Ez forms 2013 S. Ez forms 2013 person or a pass- through partner, beneficiary, or owner. Ez forms 2013   For information on these rules, see section 4A. Ez forms 2013 01 of the QI agreement. Ez forms 2013 This is found in Appendix 3 of Revenue Procedure 2003-64. Ez forms 2013 Also see Revenue Procedure 2004-21. Ez forms 2013 Related partnerships and trusts. Ez forms 2013    A QI may apply special rules to a related partnership or trust only if the partnership or trust meets the following conditions. Ez forms 2013 It is a foreign partnership or foreign simple or grantor trust. Ez forms 2013 It is either: A direct account holder of the QI, or An indirect account holder of the QI that is a direct partner, beneficiary, or owner of a partnership or trust to which the QI has applied this rule. Ez forms 2013 For information on these rules, see section 4A. Ez forms 2013 02 of the QI agreement. Ez forms 2013 This is found in Appendix 3 of Revenue Procedure 2003-64. Ez forms 2013 Also see Revenue Procedure 2005-77. Ez forms 2013 Nonqualified Intermediaries If you are making a payment to an NQI, foreign flow-through entity, or U. Ez forms 2013 S. Ez forms 2013 branch that is using Form W-8IMY to transmit information about the branch's account holders or customers, you can treat the payment (or a part of the payment) as reliably associated with valid documentation from a specific payee only if, prior to making the payment: You can allocate the payment to a valid Form W-8IMY, You can reliably determine how much of the payment relates to valid documentation provided by a payee (a person that is not itself a foreign intermediary, flow- through entity, or U. Ez forms 2013 S. Ez forms 2013 branch), and You have sufficient information to report the payment on Form 1042-S or Form 1099, if reporting is required. Ez forms 2013 The NQI, flow-through entity, or U. Ez forms 2013 S. Ez forms 2013 branch must give you certain information on a withholding statement that is associated with the Form W-8IMY. Ez forms 2013 A withholding statement must be updated to keep the information accurate prior to each payment. Ez forms 2013 Withholding statement. Ez forms 2013   In most cases, a withholding statement must contain the following information. Ez forms 2013 The name, address, and TIN (if any, or if required) of each person for whom documentation is provided. Ez forms 2013 The type of documentation (documentary evidence, Form W-8, or Form W-9) for every person for whom documentation has been provided. Ez forms 2013 The status of the person for whom the documentation has been provided, such as whether the person is a U. Ez forms 2013 S. Ez forms 2013 exempt recipient (U. Ez forms 2013 S. Ez forms 2013 person exempt from Form 1099 reporting), U. Ez forms 2013 S. Ez forms 2013 non-exempt recipient (U. Ez forms 2013 S. Ez forms 2013 person subject to Form 1099 reporting), or a foreign person. Ez forms 2013 For a foreign person, the statement must indicate whether the person is a beneficial owner or a foreign intermediary, flow-through entity, or a U. Ez forms 2013 S. Ez forms 2013 branch. Ez forms 2013 The type of recipient the person is, based on the recipient codes used on Form 1042-S. Ez forms 2013 Information allocating each payment, by income type, to each payee (including U. Ez forms 2013 S. Ez forms 2013 exempt and U. Ez forms 2013 S. Ez forms 2013 non-exempt recipients) for whom documentation has been provided. Ez forms 2013 The rate of withholding that applies to each foreign person to whom a payment is allocated. Ez forms 2013 A foreign payee's country of residence. Ez forms 2013 If a reduced rate of withholding is claimed, the basis for a reduced rate of withholding (for example, portfolio interest, treaty benefit, etc. Ez forms 2013 ). Ez forms 2013 In the case of treaty benefits claimed by entities, whether the applicable limitation on benefits statement and the statement that the foreign person derives the income for which treaty benefits are claimed, have been made. Ez forms 2013 The name, address, and TIN (if any) of any other NQI, flow-through entity, or U. Ez forms 2013 S. Ez forms 2013 branch from which the payee will directly receive a payment. Ez forms 2013 Any other information a withholding agent requests to fulfill its reporting and withholding obligations. Ez forms 2013 Alternative procedure. Ez forms 2013   Under this alternative procedure the NQI can give you the information that allocates each payment to each foreign and U. Ez forms 2013 S. Ez forms 2013 exempt recipient by January 31 following the calendar year of payment, rather than prior to the payment being made as otherwise required. Ez forms 2013 To take advantage of this procedure, the NQI must: (a) inform you, on its withholding statement, that it is using the alternative procedure; and (b) obtain your consent. Ez forms 2013 You must receive the withholding statement with all the required information (other than item 5) prior to making the payment. Ez forms 2013    This alternative procedure cannot be used for payments to U. Ez forms 2013 S. Ez forms 2013 non-exempt recipients. Ez forms 2013 Therefore, an NQI must always provide you with allocation information for all U. Ez forms 2013 S. Ez forms 2013 non-exempt recipients prior to a payment being made. Ez forms 2013 Pooled withholding information. Ez forms 2013   If an NQI uses the alternative procedure, it must provide you with withholding rate pool information, as opposed to individual allocation information, prior to the payment of a reportable amount. Ez forms 2013 A withholding rate pool is a payment of a single type of income (as determined by the income categories on Form 1042-S) that is subject to a single rate of withholding. Ez forms 2013 For example, an NQI that has foreign account holders receiving royalties and dividends, both subject to the 15% rate, will provide you with information for two withholding rate pools (one for royalties and one for dividends). Ez forms 2013 The NQI must provide you with the payee specific allocation information (information allocating each payment to each payee) by January 31 following the calendar year of payment. Ez forms 2013 Failure to provide allocation information. Ez forms 2013   If an NQI fails to provide you with the payee specific allocation information for a withholding rate pool by January 31, you must not apply the alternative procedure to any of the NQI's withholding rate pools from that date forward. Ez forms 2013 You must treat the payees as undocumented and apply the presumption rules, discussed later in Presumption Rules . Ez forms 2013 An NQI is deemed to have f