Audio Conferences

IRS Form 1042-S: Avoid Costly Compliance Missteps in Payments to Foreign Persons

March 19, 2008 at 02:00PM ET

Do you know how to identify whether your payee is a U.S. or non U.S. person?

If you determine you are making a payment to a non-U.S. person, do you know the IRS's special reporting and 30% withholding rules for these payments?

Form 1042-S, used to report a foreign person’s U.S. source income subject to withholding, is one of the more complex forms you’ll encounter as an AP professional. The reporting details can be mind-boggling.

Ignoring these rules can be disastrous—a well known institution recently had a $30,000,000.00 assessment levied against them by the IRS. Don’t let your organization take this risk!

Register now for this invaluable IOMA audio conference. Resident AP expert Marianne Couch will teach you the rules in her usual straightforward and easy-to-understand manner. You’ll walk away with not only a thorough understanding of the requirements, but also the tools to help your organization follow them.

In just 90 minutes, you’ll discover:

How the tax rules define U.S. and non U.S. persons -- you might be surprised!
What documentation to obtain from your non U.S. payees
If you have to withhold 30% of the payment as U.S. tax
How to convince your organization of the importance of these rules to avoid huge assessments, such as the $30,000,000.00 assessment the IRS levied against a well known institution
How to convince your non U.S. payees to provide you with the required original and correct Form W-8
The basic requirements for applying the benefits of a U.S. income tax treaty

FEATURED FACULTY

Marianne Couch, Esq.
COKALA Tax Information Reporting Solutions, LLC

Marianne Couch, Esq., is an experienced advisor and author on U.S. federal and state tax information reporting compliance. She is a founding member of the COKALA Tax Group. She was formerly Executive Director of the National Association of Form 1099 Filers, Inc. and Director of Research for Balance Consulting, Inc. in Ann Arbor, MI. Prior to joining Balance Consulting, her professional experience was with a large regional law firm. Marianne formerly served as a member of the IRS Information Reporting Program Advisory Committee, and as Chair of the IRPAC Subcommittee on Small Business and Self-Employed (SBSE) tax issues. She is a frequent lecturer at nationwide professional conferences, and author of numerous articles on tax reporting law and procedure. She received her JD from the Michigan State University School of Law, cum laude, and is a member of the Michigan bar.

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