Late filing of Forms 1042-S also can result in a penalty of $250 per form, up to a maximum of $3,000,000 per year, or $50 per form if the form is not correctly filed within 30 days after the required filing date, up to a maximum of $536,000 ($187,500 for small businesses) per year [IRC sections 6721(a) and (b); Form 1042-S Instructions], A withholding agent can cure its noncompliance after the fact by obtaining a Form W-8
or other documentation from the payee, but the withholding agent may still be subject to penalties and interest ("U.S.
Tipalti, provider of a global payments management platform, said it has fully integrated a Form W-8
collection solution into its platform.
Exemptions and reduced rates are available but generally require the beneficial owner to document its right to the exemption on the appropriate version of Form W-8
. Such payments generally must be reported to the IRS on Form 1042-S, Foreign Person's U.S.
taxpayer identification number (TIN) on the appropriate Form W-8
. A foreign service provider rendering all services outside the country does not need to provide a TIN.
The IRM provides guidance to withholding examiners with respect to reliance on a withholding certificate (Form W-8
) that is part of the review process of Form 1042 and Form 1042-S.
Nonresident aliens and other foreign persons should complete and deliver to the property manager Form W-8
, which certifies that the person is a foreign person.
payer will be required to withhold 30% unless the payer first has in its possession a properly executed Form W-8
from the payee.
Theatre--live performances Escort services Extended warranty companies Federal excise tax, coal mining Financial institutions Form 1 042-S withholding agents Form W-8
unreported income Foreign airlines [excise tax) Foreign tourism Furniture manufacturing Garment industry Gasoline distributors Gas retailers Grain and milo growers Grocery stores Healthcare Insurance agencies Intermodal industry (transport containers) Internal Revenue Code section
This exemption from withholding can be claimed by the completion of Form W-8
, Certificate of Foreign Status.
withholding agent can generally rely on a properly completed withholding certificate (Form W-8
) to establish foreign status or claim treaty benefits.
The withholding agent will generally use a withholding certificate (the Form W-8
series, Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, or Form W-9, Request for Taxpayer Identification Number and Certification) to ascertain the payee's status.
person must provide a valid Form W-8
(e.g., Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding).