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Filing An Amended Tax Return 2012

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Filing An Amended Tax Return 2012

Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 Taxpayer Identification NumbersUnexpected payment. Filing an amended tax return 2012 Depositing Withheld TaxesWhen Deposits Are Required Adjustment for Overwithholding Returns RequiredJoint owners. Filing an amended tax return 2012 Electronic reporting. Filing an amended tax return 2012 Partnership Withholding on Effectively Connected IncomeWho Must Withhold Foreign Partner Publicly Traded Partnerships U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 Real Property InterestForeign corporations. Filing an amended tax return 2012 Domestic corporations. Filing an amended tax return 2012 U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 real property holding corporations. Filing an amended tax return 2012 Partnerships. Filing an amended tax return 2012 Trusts and estates. Filing an amended tax return 2012 Domestically controlled QIE. Filing an amended tax return 2012 Late filing of certifications or notices. Filing an amended tax return 2012 Certifications. Filing an amended tax return 2012 Liability of agent or qualified substitute. Filing an amended tax return 2012 Reporting and Paying the Tax Withholding Certificates Tax Treaty TablesTable 1 Table 2 Table 3 How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Filing an amended tax return 2012 Withholding of Tax In most cases, a foreign person is subject to U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 tax on its U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 source income. Filing an amended tax return 2012 Most types of U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 source income received by a foreign person are subject to U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 tax of 30%. Filing an amended tax return 2012 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. Filing an amended tax return 2012 The tax is generally withheld (NRA withholding) from the payment made to the foreign person. Filing an amended tax return 2012 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. Filing an amended tax return 2012 In most cases, NRA withholding describes the withholding regime that requires withholding on a payment of U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 source income. Filing an amended tax return 2012 Payments to foreign persons, including nonresident alien individuals, foreign entities, and governments, may be subject to NRA withholding. Filing an amended tax return 2012 NRA withholding does not include withholding under section 1445 of the Code (see U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 Real Property Interest, later) or under section 1446 of the Code (see Partnership Withholding on Effectively Connected Income , later). Filing an amended tax return 2012 A withholding agent (defined next) is the person responsible for withholding on payments made to a foreign person. Filing an amended tax return 2012 However, a withholding agent that can reliably associate the payment with documentation (discussed later) from a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person is not required to withhold. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Withholding Agent You are a withholding agent if you are a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch of certain foreign banks and insurance companies. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Although several persons may be withholding agents for a single payment, the full tax is required to be withheld only once. Filing an amended tax return 2012 In most cases, the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person who pays an amount subject to NRA withholding is the person responsible for withholding. Filing an amended tax return 2012 However, other persons may be required to withhold. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Liability for tax. Filing an amended tax return 2012   As a withholding agent, you are personally liable for any tax required to be withheld. Filing an amended tax return 2012 This liability is independent of the tax liability of the foreign person to whom the payment is made. Filing an amended tax return 2012 If you fail to withhold and the foreign payee fails to satisfy its U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 tax liability, then both you and the foreign person are liable for tax, as well as interest and any applicable penalties. Filing an amended tax return 2012   The applicable tax will be collected only once. Filing an amended tax return 2012 If the foreign person satisfies its U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 tax liability, you are not liable for the tax but remain liable for any interest and penalties for failure to withhold. Filing an amended tax return 2012 Determination of amount to withhold. Filing an amended tax return 2012   You must withhold on the gross amount subject to NRA withholding. Filing an amended tax return 2012 You cannot reduce the gross amount by any deductions. Filing an amended tax return 2012 However, see Scholarships and Fellowship Grants and Pay for Personal Services Performed , later, for when a deduction for a personal exemption may be allowed. Filing an amended tax return 2012   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. Filing an amended tax return 2012 In no case, however, should you withhold more than 30% of the total amount paid. Filing an amended tax return 2012 Or, you may make a reasonable estimate of the amount from U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 sources and put a corresponding part of the amount due in escrow until the amount from U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 sources can be determined, at which time withholding becomes due. Filing an amended tax return 2012 When to withhold. Filing an amended tax return 2012   Withholding is required at the time you make a payment of an amount subject to withholding. Filing an amended tax return 2012 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. Filing an amended tax return 2012 A payment is considered made to a person if it is paid for that person's benefit. Filing an amended tax return 2012 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. Filing an amended tax return 2012 A payment also is considered made to a person if it is made to that person's agent. Filing an amended tax return 2012   A U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 partnership should withhold when any distributions that include amounts subject to withholding are made. Filing an amended tax return 2012 However, if a foreign partner's distributive share of income subject to withholding is not actually distributed, the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 If the distributable amount consists of effectively connected income, see Partnership Withholding on Effectively Connected Income , later. Filing an amended tax return 2012 A U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 To the extent a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 (See Returns Required , later. Filing an amended tax return 2012 ) 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. Filing an amended tax return 2012 Form 1099 reporting and backup withholding. Filing an amended tax return 2012    You also may be responsible as a payer for reporting on Form 1099 payments made to a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person. Filing an amended tax return 2012 You must withhold 28% (backup withholding rate) from a reportable payment made to a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person that is subject to Form 1099 reporting if any of the following apply. Filing an amended tax return 2012 The U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person has not provided its taxpayer identification number (TIN) in the manner required. Filing an amended tax return 2012 The IRS notifies you that the TIN furnished by the payee is incorrect. Filing an amended tax return 2012 There has been a notified payee underreporting. Filing an amended tax return 2012 There has been a payee certification failure. Filing an amended tax return 2012 In most cases, a TIN must be provided by a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 non-exempt recipient on Form W-9, Request for Taxpayer Identification Number and Certification. Filing an amended tax return 2012 A payer files a tax return on Form 945, Annual Return of Withheld Federal Income Tax, for backup withholding. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person. Filing an amended tax return 2012 For example, you are required to report income paid to a foreign intermediary or flow-through entity that collects for a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person subject to Form 1099 reporting. Filing an amended tax return 2012 See Identifying the Payee , later, for more information. Filing an amended tax return 2012 Also see Section S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Wages paid to employees. Filing an amended tax return 2012   If you are the employer of a nonresident alien, you generally must withhold taxes at graduated rates. Filing an amended tax return 2012 See Pay for Personal Services Performed , later. Filing an amended tax return 2012 Effectively connected income by partnerships. Filing an amended tax return 2012   A withholding agent that is a partnership (whether U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 or foreign) is also responsible for withholding on its income effectively connected with a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 trade or business that is allocable to foreign partners. Filing an amended tax return 2012 See Partnership Withholding on Effectively Connected Income , later, for more information. Filing an amended tax return 2012 U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 real property interest. Filing an amended tax return 2012   A withholding agent also may be responsible for withholding if a foreign person transfers a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 real property interest to the agent, or if it is a corporation, partnership, trust, or estate that distributes a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 real property interest to a shareholder, partner, or beneficiary that is a foreign person. Filing an amended tax return 2012 See U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 Real Property Interest , later. Filing an amended tax return 2012 Persons Subject to NRA Withholding NRA withholding applies only to payments made to a payee that is a foreign person. Filing an amended tax return 2012 It does not apply to payments made to U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 persons. Filing an amended tax return 2012 Usually, you determine the payee's status as a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 or foreign person based on the documentation that person provides. Filing an amended tax return 2012 See Documentation , later. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 However, there are situations in which the payee is a person other than the one to whom you actually make a payment. Filing an amended tax return 2012 U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 agent of foreign person. Filing an amended tax return 2012   If you make a payment to a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person and you have actual knowledge that the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person is receiving the payment as an agent of a foreign person, you must treat the payment as made to the foreign person. Filing an amended tax return 2012 However, if the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012   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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person and not as a payment to a foreign person. Filing an amended tax return 2012 You may be required to report the payment on Form 1099 and, if applicable, backup withhold. Filing an amended tax return 2012 Disregarded entities. Filing an amended tax return 2012   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. Filing an amended tax return 2012 The payee of a payment made to a disregarded entity is the owner of the entity. Filing an amended tax return 2012   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. Filing an amended tax return 2012   If the owner is a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person, you do not apply NRA withholding. Filing an amended tax return 2012 However, you may be required to report the payment on Form 1099 and, if applicable, backup withhold. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Flow-Through Entities The payees of payments (other than income effectively connected with a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 trade or business) made to a foreign flow-through entity are the owners or beneficiaries of the flow-through entity. Filing an amended tax return 2012 This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Filing an amended tax return 2012 Income that is, or is deemed to be, effectively connected with the conduct of a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 trade or business of a flow-through entity is treated as paid to the entity. Filing an amended tax return 2012 All of the following are flow-through entities. Filing an amended tax return 2012 A foreign partnership (other than a withholding foreign partnership). Filing an amended tax return 2012 A foreign simple or foreign grantor trust (other than a withholding foreign trust). Filing an amended tax return 2012 A fiscally transparent entity receiving income for which treaty benefits are claimed. Filing an amended tax return 2012 See Fiscally transparent entity , later. Filing an amended tax return 2012 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. Filing an amended tax return 2012 You also may be required to treat the entity as a flow-through entity under the presumption rules, discussed later. Filing an amended tax return 2012 You must determine whether the owners or beneficiaries of a flow-through entity are U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 See Documentation and Presumption Rules , later. Filing an amended tax return 2012 Withholding foreign partnerships and withholding foreign trusts are not flow-through entities. Filing an amended tax return 2012 Foreign partnerships. Filing an amended tax return 2012    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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Example 1. Filing an amended tax return 2012 A nonwithholding foreign partnership has three partners: a nonresident alien individual; a foreign corporation; and a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 citizen. Filing an amended tax return 2012 You make a payment of U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 source interest to the partnership. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 citizen. Filing an amended tax return 2012 The partnership also gives you a complete withholding statement that enables you to associate a part of the interest payment to each partner. Filing an amended tax return 2012 You must treat all three partners as the payees of the interest payment as if the payment were made directly to them. Filing an amended tax return 2012 Report the payment to the nonresident alien and the foreign corporation on Forms 1042-S. Filing an amended tax return 2012 Report the payment to the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 citizen on Form 1099-INT. Filing an amended tax return 2012 Example 2. Filing an amended tax return 2012 A nonwithholding foreign partnership has two partners: a foreign corporation and a nonwithholding foreign partnership. Filing an amended tax return 2012 The second partnership has two partners, both nonresident alien individuals. Filing an amended tax return 2012 You make a payment of U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 source interest to the first partnership. Filing an amended tax return 2012 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. Filing an amended tax return 2012 In addition, Forms W-8BEN from the partners are associated with the Form W-8IMY from the second partnership. Filing an amended tax return 2012 The Forms W-8IMY from the partnerships have complete withholding statements associated with them. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Example 3. Filing an amended tax return 2012 You make a payment of U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 source dividends to a withholding foreign partnership. Filing an amended tax return 2012 The partnership has two partners, both foreign corporations. Filing an amended tax return 2012 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. Filing an amended tax return 2012 You must treat the partnership as the payee of the dividends. Filing an amended tax return 2012 Foreign simple and grantor trust. Filing an amended tax return 2012   A trust is foreign unless it meets both of the following tests. Filing an amended tax return 2012 A court within the United States is able to exercise primary supervision over the administration of the trust. Filing an amended tax return 2012 One or more U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 persons have the authority to control all substantial decisions of the trust. Filing an amended tax return 2012   In most cases, a foreign simple trust is a foreign trust that is required to distribute all of its income annually. Filing an amended tax return 2012 A foreign grantor trust is a foreign trust that is treated as a grantor trust under sections 671 through 679 of the Code. Filing an amended tax return 2012   The payees of a payment made to a foreign simple trust are the beneficiaries of the trust. Filing an amended tax return 2012 The payees of a payment made to a foreign grantor trust are the owners of the trust. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Example. Filing an amended tax return 2012 A foreign simple trust has three beneficiaries: two nonresident alien individuals and a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 citizen. Filing an amended tax return 2012 You make a payment of interest to the foreign trust. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 citizen. Filing an amended tax return 2012 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. Filing an amended tax return 2012 You must treat all three beneficiaries as the payees of the interest payment as if the payment were made directly to them. Filing an amended tax return 2012 Report the payment to the nonresident aliens on Forms 1042-S. Filing an amended tax return 2012 Report the payment to the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 citizen on Form 1099-INT. Filing an amended tax return 2012 Fiscally transparent entity. Filing an amended tax return 2012   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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 ). Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012   The payees of a payment made to a fiscally transparent entity are the interest holders of the entity. Filing an amended tax return 2012 Example. Filing an amended tax return 2012 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. Filing an amended tax return 2012 A has two interest holders, B and C. Filing an amended tax return 2012 B is a corporation organized under the laws of country Y. Filing an amended tax return 2012 C is a corporation organized under the laws of country Z. Filing an amended tax return 2012 Both countries Y and Z have an income tax treaty in force with the United States. Filing an amended tax return 2012 A receives royalty income from U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 sources that is not effectively connected with the conduct of a trade or business in the United States. Filing an amended tax return 2012 For U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 income tax purposes, A is treated as a partnership. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Accordingly, A is fiscally transparent in its jurisdiction, country X. Filing an amended tax return 2012 B and C are not fiscally transparent under the laws of their respective countries of incorporation. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 source royalty income for purposes of the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 -Y income tax treaty. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Therefore, A is not treated as fiscally transparent under the laws of country Z. Filing an amended tax return 2012 Accordingly, C is not treated as deriving its share of the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 source royalty income for purposes of the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 -Z income tax treaty. Filing an amended tax return 2012 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. Filing an amended tax return 2012 This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Filing an amended tax return 2012 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. Filing an amended tax return 2012 An intermediary is a custodian, broker, nominee, or any other person that acts as an agent for another person. Filing an amended tax return 2012 A foreign intermediary is either a qualified intermediary or a nonqualified intermediary. Filing an amended tax return 2012 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. Filing an amended tax return 2012 You must determine whether the customers or account holders of a foreign intermediary are U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 or foreign persons and, if the account holder or customer is foreign, whether a reduced rate of NRA withholding applies. Filing an amended tax return 2012 You make these determinations based on the foreign intermediary's Form W-8IMY and associated information and documentation. Filing an amended tax return 2012 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. Filing an amended tax return 2012 See Documentation and Presumption Rules , later. Filing an amended tax return 2012 Nonqualified intermediary. Filing an amended tax return 2012   A nonqualified intermediary (NQI) is any intermediary that is a foreign person and that is not a qualified intermediary. Filing an amended tax return 2012 The payees of a payment made to an NQI are the customers or account holders on whose behalf the NQI is acting. Filing an amended tax return 2012 Example. Filing an amended tax return 2012 You make a payment of interest to a foreign bank that is a nonqualified intermediary. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person for whom the bank is collecting the payments. Filing an amended tax return 2012 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. Filing an amended tax return 2012 The account holders are the payees of the interest payment. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person on Form 1099-INT. Filing an amended tax return 2012 Qualified intermediary. Filing an amended tax return 2012   A qualified intermediary (QI) is any foreign intermediary (or foreign branch of a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 intermediary) that has entered into a qualified intermediary withholding agreement (discussed later) with the IRS. Filing an amended tax return 2012 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. Filing an amended tax return 2012 In this situation, the QI is required to withhold the tax. Filing an amended tax return 2012 You can determine whether a QI has assumed responsibility from the Form W-8IMY provided by the QI. Filing an amended tax return 2012   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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person. Filing an amended tax return 2012 Branches of financial institutions. Filing an amended tax return 2012   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. Filing an amended tax return 2012 The countries with approved KYC rules are listed on IRS. Filing an amended tax return 2012 gov. Filing an amended tax return 2012 QI withholding agreement. Filing an amended tax return 2012   Foreign financial institutions and foreign branches of U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 financial institutions can enter into an agreement with the IRS to be a qualified intermediary. Filing an amended tax return 2012   A QI is entitled to certain simplified withholding and reporting rules. Filing an amended tax return 2012 In general, there are three major areas whereby intermediaries with QI status are afforded such simplified treatment. Filing an amended tax return 2012   To apply for QI status, complete Form 14345, Qualified Intermediary Application, and Form SS-4, Application for Employer Identification Number. Filing an amended tax return 2012 These forms, and the procedures required to obtain a QI withholding agreement are available at www. Filing an amended tax return 2012 irs. Filing an amended tax return 2012 gov/Businesses/Corporations/Qualified-Intermediaries-(QI). Filing an amended tax return 2012 Documentation. Filing an amended tax return 2012   A QI is not required to forward documentation obtained from foreign account holders to the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 withholding agent from whom the QI receives a payment of U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 source income. Filing an amended tax return 2012 The QI maintains such documentation at its location and provides the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 withholding agent with withholding rate pools. Filing an amended tax return 2012 A withholding rate pool is a payment of a single type of income that is subject to a single rate of withholding. Filing an amended tax return 2012   A QI is required to provide the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 withholding agent with information regarding U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 persons subject to Form 1099 information reporting unless the QI assumes the primary obligation to do Form 1099 reporting and backup withholding. Filing an amended tax return 2012   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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Form 1042-S reporting. Filing an amended tax return 2012   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. Filing an amended tax return 2012 Pooled basis reporting is not available for payments to certain account holders, such as a nonqualified intermediary or a flow-through entity (discussed earlier). Filing an amended tax return 2012 Collective refund procedures. Filing an amended tax return 2012   A QI may seek a refund on behalf of its direct account holders. Filing an amended tax return 2012 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. Filing an amended tax return 2012 U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branches of foreign banks and foreign insurance companies. Filing an amended tax return 2012   Special rules apply to a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch of a foreign bank subject to Federal Reserve Board supervision or a foreign insurance company subject to state regulatory supervision. Filing an amended tax return 2012 If you agree to treat the branch as a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person, you may treat the branch as a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 payee for a payment subject to NRA withholding provided you receive a Form W-8IMY from the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch on which the agreement is evidenced. Filing an amended tax return 2012 If you treat the branch as a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 payee, you are not required to withhold. Filing an amended tax return 2012 Even though you agree to treat the branch as a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person, you must report the payment on Form 1042-S. Filing an amended tax return 2012   A financial institution organized in a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 possession is treated as a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch. Filing an amended tax return 2012 The special rules discussed in this section apply to a possessions financial institution. Filing an amended tax return 2012   If you are paying a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person for amounts subject to NRA withholding. Filing an amended tax return 2012 Consequently, amounts not subject to NRA withholding that are paid to a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch are not subject to Form 1099 reporting or backup withholding. Filing an amended tax return 2012   Alternatively, a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch may provide you with a Form W-8IMY with which it associates the documentation of the persons on whose behalf it acts. Filing an amended tax return 2012 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. Filing an amended tax return 2012 See Nonqualified Intermediaries under  Documentation, later. Filing an amended tax return 2012   If the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Withholding foreign partnership and foreign trust. Filing an amended tax return 2012   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. Filing an amended tax return 2012 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. Filing an amended tax return 2012   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. Filing an amended tax return 2012 A WP or WT acting in that capacity must assume NRA withholding responsibility for these amounts. Filing an amended tax return 2012 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. Filing an amended tax return 2012 WP and WT withholding agreements. Filing an amended tax return 2012   The WP and WT withholding agreements and the application procedures for the agreements are in Revenue Procedure 2003-64. Filing an amended tax return 2012 Also see the following items. Filing an amended tax return 2012 Revenue Procedure 2004-21. Filing an amended tax return 2012 Revenue Procedure 2005-77. Filing an amended tax return 2012 Employer identification number (EIN). Filing an amended tax return 2012   A completed Form SS-4 must be submitted with the application for being a WP or WT. Filing an amended tax return 2012 The WP or WT will be assigned a WP-EIN or WT-EIN to be used only when acting in that capacity. Filing an amended tax return 2012 Documentation. Filing an amended tax return 2012   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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 The Form W-8IMY must contain the WP-EIN or WT-EIN. Filing an amended tax return 2012 Foreign Persons A payee is subject to NRA withholding only if it is a foreign person. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person. Filing an amended tax return 2012 It also includes a foreign branch of a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 financial institution if the foreign branch is a qualified intermediary. Filing an amended tax return 2012 In most cases, the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch of a foreign corporation or partnership is treated as a foreign person. Filing an amended tax return 2012 Nonresident alien. Filing an amended tax return 2012   A nonresident alien is an individual who is not a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 citizen or a resident alien. Filing an amended tax return 2012 A resident of a foreign country under the residence article of an income tax treaty is a nonresident alien individual for purposes of withholding. Filing an amended tax return 2012 Married to U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 citizen or resident alien. Filing an amended tax return 2012   Nonresident alien individuals married to U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 citizens or resident aliens may choose to be treated as resident aliens for certain income tax purposes. Filing an amended tax return 2012 However, these individuals are still subject to the NRA withholding rules that apply to nonresident aliens for all income except wages. Filing an amended tax return 2012 Wages paid to these individuals are subject to graduated withholding. Filing an amended tax return 2012 See Wages Paid to Employees—Graduated Withholding . Filing an amended tax return 2012 Resident alien. Filing an amended tax return 2012   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. Filing an amended tax return 2012 Green card test. Filing an amended tax return 2012 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. Filing an amended tax return 2012 This is known as the green card test because these aliens hold immigrant visas (also known as green cards). Filing an amended tax return 2012 Substantial presence test. Filing an amended tax return 2012 An alien is considered a resident alien if the individual meets the substantial presence test for the calendar year. Filing an amended tax return 2012 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. Filing an amended tax return 2012   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. Filing an amended tax return 2012 This exception is for a limited period of time. Filing an amended tax return 2012   For more information on resident and nonresident status, the tests for residence, and the exceptions to them, see Publication 519. Filing an amended tax return 2012 Note. Filing an amended tax return 2012   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. Filing an amended tax return 2012 For more information on making adjustments, see chapter 13 of Publication 15 (Circular E). Filing an amended tax return 2012 Resident of a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 possession. Filing an amended tax return 2012   A bona fide resident of Puerto Rico, the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), or American Samoa who is not a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 citizen or a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 national is treated as a nonresident alien for the withholding rules explained here. Filing an amended tax return 2012 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. Filing an amended tax return 2012   For more information, see Publication 570, Tax Guide for Individuals With Income From U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 Possessions. Filing an amended tax return 2012 Foreign corporations. Filing an amended tax return 2012   A foreign corporation is one that does not fit the definition of a domestic corporation. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Guam or Northern Mariana Islands corporations. Filing an amended tax return 2012   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). Filing an amended tax return 2012 Note. Filing an amended tax return 2012   The provisions discussed below under U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 Virgin Islands and American Samoa corporations. Filing an amended tax return 2012   A corporation created or organized in, or under the laws of, the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 Virgin Islands, American Samoa, Guam, the CNMI, or the United States. Filing an amended tax return 2012 Foreign private foundations. Filing an amended tax return 2012   A private foundation that was created or organized under the laws of a foreign country is a foreign private foundation. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Other foreign organizations, associations, and charitable institutions. Filing an amended tax return 2012   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. Filing an amended tax return 2012 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. Filing an amended tax return 2012   Payments to these organizations, however, must be reported on Form 1042-S, even though no tax is withheld. Filing an amended tax return 2012   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. Filing an amended tax return 2012 U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branches of foreign persons. Filing an amended tax return 2012   In most cases, a payment to a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch of a foreign person is a payment made to the foreign person. Filing an amended tax return 2012 However, you may treat payments to U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branches of foreign banks and foreign insurance companies (discussed earlier) that are subject to U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 regulatory supervision as payments made to a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person, if you and the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch have agreed to do so, and if their agreement is evidenced by a withholding certificate, Form W-8IMY. Filing an amended tax return 2012 For this purpose, a financial institution organized under the laws of a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 possession is treated as a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch. Filing an amended tax return 2012 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. Filing an amended tax return 2012 The payee is a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person. Filing an amended tax return 2012 The payee is a foreign person that is the beneficial owner of the income and is entitled to a reduced rate of withholding. Filing an amended tax return 2012 In most cases, you must get the documentation before you make the payment. Filing an amended tax return 2012 The documentation is not valid if you know, or have reason to know, that it is unreliable or incorrect. Filing an amended tax return 2012 See Standards of Knowledge , later. Filing an amended tax return 2012 If you cannot reliably associate a payment with valid documentation, you must use the presumption rules discussed later. Filing an amended tax return 2012 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. Filing an amended tax return 2012 The specific types of documentation are discussed in this section. Filing an amended tax return 2012 However, see Withholding on Specific Income , later, as well as the instructions to the particular forms. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Section 1446 withholding. Filing an amended tax return 2012   Under section 1446 of the Code, a partnership must withhold tax on its effectively connected income allocable to a foreign partner. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Joint owners. Filing an amended tax return 2012    If you make a payment to joint owners, you need to get documentation from each owner. Filing an amended tax return 2012 Form W-9. Filing an amended tax return 2012   In most cases, you can treat the payee as a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person if the payee gives you a Form W-9. Filing an amended tax return 2012 The Form W-9 can be used only by a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person and must contain the payee's taxpayer identification number (TIN). Filing an amended tax return 2012 If there is more than one owner, you may treat the total amount as paid to a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person if any one of the owners gives you a Form W-9. Filing an amended tax return 2012 See U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 Taxpayer Identification Numbers , later. Filing an amended tax return 2012 U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 persons are not subject to NRA withholding, but may be subject to Form 1099 reporting and backup withholding. Filing an amended tax return 2012 Form W-8. Filing an amended tax return 2012   In most cases, a foreign payee of the income should give you a form in the Form W-8 series. Filing an amended tax return 2012 Until further notice, you can rely upon Forms W-8 that contain a P. Filing an amended tax return 2012 O. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person and that a street address is available. Filing an amended tax return 2012 You may rely on Forms W-8 for which there is a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 mailing address provided you received the form prior to December 31, 2001. Filing an amended tax return 2012   If certain requirements are met, the foreign person can give you documentary evidence, rather than a Form W-8. Filing an amended tax return 2012 You can rely on documentary evidence in lieu of a Form W-8 for a payment made in a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 possession. Filing an amended tax return 2012 Other documentation. Filing an amended tax return 2012   Other documentation may be required to claim an exemption from, or a reduced rate of, withholding on pay for personal services. Filing an amended tax return 2012 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. Filing an amended tax return 2012 These forms are discussed in Pay for Personal Services Performed under Withholding on Specific Income. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. Filing an amended tax return 2012   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. Filing an amended tax return 2012   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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Claiming treaty benefits. Filing an amended tax return 2012   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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012   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. Filing an amended tax return 2012   An entity derives income for which it is claiming treaty benefits only if the entity is not treated as fiscally transparent for that income. Filing an amended tax return 2012 See Fiscally transparent entity discussed earlier under Flow-Through Entities. Filing an amended tax return 2012   Limitations on benefits provisions generally prohibit third country residents from obtaining treaty benefits. Filing an amended tax return 2012 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. Filing an amended tax return 2012   The exemptions from, or reduced rates of, U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 tax vary under each treaty. Filing an amended tax return 2012 You must check the provisions of the tax treaty that apply. Filing an amended tax return 2012 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. Filing an amended tax return 2012   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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Exceptions to TIN requirement. Filing an amended tax return 2012   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. Filing an amended tax return 2012 Income from marketable securities (discussed next). Filing an amended tax return 2012 Unexpected payments to an individual (discussed under U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 Taxpayer Identification Numbers ). Filing an amended tax return 2012 Marketable securities. Filing an amended tax return 2012   A Form W-8BEN provided to claim treaty benefits does not need a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 TIN if the foreign beneficial owner is claiming the benefits on income from marketable securities. Filing an amended tax return 2012 For this purpose, income from a marketable security consists of the following items. Filing an amended tax return 2012 Dividends and interest from stocks and debt obligations that are actively traded. Filing an amended tax return 2012 Dividends from any redeemable security issued by an investment company registered under the Investment Company Act of 1940 (mutual fund). Filing an amended tax return 2012 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. Filing an amended tax return 2012 Income related to loans of any of the above securities. Filing an amended tax return 2012 Offshore accounts. Filing an amended tax return 2012   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. Filing an amended tax return 2012   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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 An offshore account is an account maintained at an office or branch of a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 or foreign bank or other financial institution at any location outside the United States. Filing an amended tax return 2012   You may rely on documentary evidence given to you by a nonqualified intermediary or a flow-through entity with its Form W-8IMY. Filing an amended tax return 2012 This rule applies even though you make the payment to a nonqualified intermediary or flow-through entity in the United States. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Documentary evidence. Filing an amended tax return 2012   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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012   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. Filing an amended tax return 2012 (See Effectively Connected Income , later. Filing an amended tax return 2012 )   Effectively connected income for which a valid Form W-8ECI has been provided is generally not subject to NRA withholding. Filing an amended tax return 2012   If a partner submits this form to a partnership, the income claimed to be effectively connected with the conduct of a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 trade or business is subject to withholding under section 1446. Filing an amended tax return 2012 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. Filing an amended tax return 2012    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. Filing an amended tax return 2012 Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding. Filing an amended tax return 2012   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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012   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. Filing an amended tax return 2012   See Foreign Governments and Certain Other Foreign Organizations , later. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 The additional information required depends on the type of intermediary or flow-through entity and the extent of the withholding responsibilities it assumes. Filing an amended tax return 2012 Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 Branches for United States Tax Withholding. Filing an amended tax return 2012   This form is used by foreign intermediaries and foreign flow-through entities, as well as certain U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch of a foreign bank or insurance company and either is agreeing to be treated as a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 For information on qualifying as an upper-tier foreign partnership, see Regulations section 1. Filing an amended tax return 2012 1446-5. Filing an amended tax return 2012 Qualified Intermediaries In most cases, a QI is any foreign intermediary that has entered into a QI withholding agreement (discussed earlier) with the IRS. Filing an amended tax return 2012 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. Filing an amended tax return 2012 The intermediary can claim that it is a QI until the IRS revokes its QI-EIN. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Responsibilities. Filing an amended tax return 2012   Payments made to a QI that does not assume NRA withholding responsibility are treated as paid to its account holders and customers. Filing an amended tax return 2012 However, a QI is not required to provide you with documentation it obtains from its foreign account holders and customers. Filing an amended tax return 2012 Instead, it provides you with a withholding statement that contains withholding rate pool information. Filing an amended tax return 2012 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. Filing an amended tax return 2012 A qualified intermediary is required to provide you with information regarding U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 persons subject to Form 1099 reporting and to provide you withholding rate pool information separately for each such U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person unless it has assumed Form 1099 reporting and backup withholding responsibility. Filing an amended tax return 2012 For the alternative procedure for providing rate pool information for U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 non-exempt persons, see the Form W-8IMY instructions. Filing an amended tax return 2012   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. Filing an amended tax return 2012   The extent to which you must have withholding rate pool information depends on the withholding and reporting obligations assumed by the QI. Filing an amended tax return 2012 Primary responsibility not assumed. Filing an amended tax return 2012   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. Filing an amended tax return 2012 Unless the alternative procedure applies, the qualified intermediary must provide you with a separate withholding rate pool for each U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person subject to Form 1099 reporting and/or backup withholding. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Primary NRA withholding responsibility assumed. Filing an amended tax return 2012   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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person, unless the alternative procedure applies, subject to Form 1099 reporting and/or backup withholding. Filing an amended tax return 2012 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. Filing an amended tax return 2012 Primary NRA and Form 1099 responsibility assumed. Filing an amended tax return 2012   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. Filing an amended tax return 2012 It is not necessary to associate the payment with withholding rate pools. Filing an amended tax return 2012 Example. Filing an amended tax return 2012 You make a payment of dividends to a QI. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 individual who provides it with a Form W-9. Filing an amended tax return 2012 Each customer is entitled to 20% of the dividend payment. Filing an amended tax return 2012 The QI does not assume any primary withholding responsibility. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 individual. Filing an amended tax return 2012 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. Filing an amended tax return 2012 The part of the payment allocable to the U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 individual (20%) is reportable on Form 1099-DIV. Filing an amended tax return 2012 Smaller partnerships and trusts. Filing an amended tax return 2012   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. Filing an amended tax return 2012 It is a foreign partnership or foreign simple or grantor trust. Filing an amended tax return 2012 It is a direct account holder of the QI. Filing an amended tax return 2012 It does not have any partner, beneficiary, or owner that is a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person or a pass- through partner, beneficiary, or owner. Filing an amended tax return 2012   For information on these rules, see section 4A. Filing an amended tax return 2012 01 of the QI agreement. Filing an amended tax return 2012 This is found in Appendix 3 of Revenue Procedure 2003-64. Filing an amended tax return 2012 Also see Revenue Procedure 2004-21. Filing an amended tax return 2012 Related partnerships and trusts. Filing an amended tax return 2012    A QI may apply special rules to a related partnership or trust only if the partnership or trust meets the following conditions. Filing an amended tax return 2012 It is a foreign partnership or foreign simple or grantor trust. Filing an amended tax return 2012 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. Filing an amended tax return 2012 For information on these rules, see section 4A. Filing an amended tax return 2012 02 of the QI agreement. Filing an amended tax return 2012 This is found in Appendix 3 of Revenue Procedure 2003-64. Filing an amended tax return 2012 Also see Revenue Procedure 2005-77. Filing an amended tax return 2012 Nonqualified Intermediaries If you are making a payment to an NQI, foreign flow-through entity, or U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch), and You have sufficient information to report the payment on Form 1042-S or Form 1099, if reporting is required. Filing an amended tax return 2012 The NQI, flow-through entity, or U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch must give you certain information on a withholding statement that is associated with the Form W-8IMY. Filing an amended tax return 2012 A withholding statement must be updated to keep the information accurate prior to each payment. Filing an amended tax return 2012 Withholding statement. Filing an amended tax return 2012   In most cases, a withholding statement must contain the following information. Filing an amended tax return 2012 The name, address, and TIN (if any, or if required) of each person for whom documentation is provided. Filing an amended tax return 2012 The type of documentation (documentary evidence, Form W-8, or Form W-9) for every person for whom documentation has been provided. Filing an amended tax return 2012 The status of the person for whom the documentation has been provided, such as whether the person is a U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 exempt recipient (U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person exempt from Form 1099 reporting), U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 non-exempt recipient (U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 person subject to Form 1099 reporting), or a foreign person. Filing an amended tax return 2012 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. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch. Filing an amended tax return 2012 The type of recipient the person is, based on the recipient codes used on Form 1042-S. Filing an amended tax return 2012 Information allocating each payment, by income type, to each payee (including U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 exempt and U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 non-exempt recipients) for whom documentation has been provided. Filing an amended tax return 2012 The rate of withholding that applies to each foreign person to whom a payment is allocated. Filing an amended tax return 2012 A foreign payee's country of residence. Filing an amended tax return 2012 If a reduced rate of withholding is claimed, the basis for a reduced rate of withholding (for example, portfolio interest, treaty benefit, etc. Filing an amended tax return 2012 ). Filing an amended tax return 2012 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. Filing an amended tax return 2012 The name, address, and TIN (if any) of any other NQI, flow-through entity, or U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 branch from which the payee will directly receive a payment. Filing an amended tax return 2012 Any other information a withholding agent requests to fulfill its reporting and withholding obligations. Filing an amended tax return 2012 Alternative procedure. Filing an amended tax return 2012   Under this alternative procedure the NQI can give you the information that allocates each payment to each foreign and U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 exempt recipient by January 31 following the calendar year of payment, rather than prior to the payment being made as otherwise required. Filing an amended tax return 2012 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. Filing an amended tax return 2012 You must receive the withholding statement with all the required information (other than item 5) prior to making the payment. Filing an amended tax return 2012    This alternative procedure cannot be used for payments to U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 non-exempt recipients. Filing an amended tax return 2012 Therefore, an NQI must always provide you with allocation information for all U. Filing an amended tax return 2012 S. Filing an amended tax return 2012 non-exempt recipients prior to a payment being made. Filing an amended tax return 2012 Pooled withholding information. Filing an amended tax return 2012   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. Filing an amended tax return 2012 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. Filing an amended tax return 2012 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). Filing an amended tax return 2012 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. Filing an amended tax return 2012 Failure to provide allocation information. Filing an amended tax return 2012   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. Filing an amended tax return 2012 You must treat the payees as undocumented and apply the presumption rules, discussed later in Presumption Rules . Filing an amended tax return 2012 An NQI is deemed to have f
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The Filing An Amended Tax Return 2012

Filing an amended tax return 2012 Index A Advance EIC tables, instructions, Advance Payment Methods for the Earned Income Credit (EIC) Aliens, nonresident, Withholding Income Taxes on the Wages of Nonresident Alien Employees Alternative methods of withholding, Alternative Methods for Figuring Withholding C Combined income tax, employee social security tax, and employee Medicare tax withholding tables, Combined Income Tax, Employee Social Security Tax, and Employee Medicare Tax Withholding Tables F Formula tables for percentage method withholding (for automated payroll systems), Formula Tables for Percentage Method Withholding (for Automated Payroll Systems) I Introduction, Introduction N Nonresident alien employees, Withholding Income Taxes on the Wages of Nonresident Alien Employees Notice to employers, Notice to Employers Q Qualified transportation benefits Commuter highway vehicle transportation, Increased Exclusion Amount for Combined Commuter Highway Vehicle Transportation and Transit Passes Transit passes, Increased Exclusion Amount for Combined Commuter Highway Vehicle Transportation and Transit Passes W Wage bracket percentage method tables (for automated payroll systems), Wage Bracket Percentage Method Tables (for Automated Payroll Systems) Withholding income taxes on wages Nonresident alien employees, Withholding Income Taxes on the Wages of Nonresident Alien Employees Withholding: Alternative methods, Alternative Methods for Figuring Withholding Percentage method, Percentage Method Wage bracket method, Wage Bracket Method Prev  Up     Home   More Online Publications