International Tax News

Guidance for Central Withholding Agreements Affected by COVID-19

Guidance for Central Withholding Agreements Affected by COVID-19 The IRS recently provided guidance for nonresident alien (NRA) taxpayers with central withholding agreements (CWAs) impacted by events canceled because of coronavirus (COVID-19). Here’s a quick overview. How the Agreements Work Generally, Internal Revenue Code Section 1441(a) requires taxes to be withheld at a rate of 30%…

Read More

CAAs Can’t Verify Foreign Military ID Cards

Certifying Acceptance Agents Can’t Verify Foreign Military ID Cards The IRS has revised the instructions for Form W-7, “Application for IRS Individual Taxpayer Identification Number.” The revision provides that Certifying Acceptance Agents (CAAs) can verify original documentation and certified copies of items from the issuing agency for primary and secondary applicants and their dependents —…

Read More

Nonresident Alien W4 Instructions Updated

IRS Updates Instructions for Nonresident Aliens Completing Form W-4 The IRS recently updated Notice 1392, “Supplemental Form W-4 Instructions for Nonresident Aliens.” Here are some details on the changes. A Form, Redesigned As you’re likely aware, Form W-4, “Employee’s Withholding Certificate,” is used by employers to calculate an employee’s correct income tax withholding. For 2020,…

Read More

Final Regs: Transfers to Partnerships with Related Foreign Partners

The IRS recently issued final regulations that address transfers of appreciated property by U.S. persons to partnerships that have partners who are related foreign persons — that is, foreign persons related to the transferor. The regs generally override the rules providing for nonrecognition of gain on a contribution of property to a partnership in exchange…

Read More

IRS Issues Final Rules on Nonresident Alien Withholding

IRS Issues Final Rules on Nonresident Alien Withholding Very late in 2019, the IRS issued final regulations on the due diligence and reporting requirements that apply to persons making certain U.S. source payments to nonresident aliens. The regs also pertain to foreign financial institutions reporting on U.S. accounts under the Foreign Account Tax Compliance Act….

Read More

Scroll Up