I have a PR corporation that is offering services at our Puerto Rico plant. Is this 1042 reportable?
No matter how much I read about foerign payments made to US possessions I am still confused. My question: I have a PR corporation that is offering services at our Puerto Rico plant. Is this 1042 reportable?
My understanding is that companies incorporated in PR are considered foreign but individuals for tax purposes are considered US residents.
Puerto Rico has some tricky rules so let's run through the basics.
You will most definitely report a nonemployee service provider who is a U.S. citizen or U.S. company performing services in Puerto Rico, as U.S. residents are always subject to reporting.
For A U.S. Person Residing In Puerto Rico When Should 480.6B Reporting to Puerto Rico be Done Vs. Form 1099-MISC to the IRS?
I reviewed the responses to several questions posed on the site regarding nonemployee compensation for individuals in Puerto Rico. I understand the distinction for a US person vs non-US person (for services performed in the US). However, I'm not clear on when the 480.6B to the Govt of Puerto Rico should be filed vs the 1099-MISC to the IRS. Or should they both be filed if they are a US person and reside in Puerto Rico?
Ok, we are kinda going with your statement that you are comfortable with the distinction between U.S. and Non-U.S. Persons vis a vis the payee in question being a Puerto Rican individual (and thus we will not delve into that distinction too far) but just to make sure....And all the same - are you sure you are up to date?
Do I Form 1099 Report a Puerto Rican Payee Doing Work in Puerto Rico?
My company is a title insurance underwriter. We are working with a Puerto Rican attorney who is researching in Puerto Rico on a Puerto Rican legal issue. What are my reporting obligations in this case?
These types of reporting situations are complicated and require a thorough review of all factors in the specific situation. No one situation will be the same as another. However, given the facts and circumstances you have outlined here is what you will need to do.
Should Non-Resident Alien Withholding Apply to Puerto Rican Nationals Performing in the U.S.?
Given the following details, should 30% for NRA withholding apply?
A group of individuals from Puerto Rico have incorporated their band under a single name. The band then performs in the U.S. clearly creating U.S. sourced income.
These types of reporting situations are complicated and require a thorough review of all factors in the specific situation.
Our company conducts business in Puerto Rico. Do we report . . .
Our company conducts business in Puerto Rico. Do we report these payees on Forms 1099?
Determining how to report a payment for services performed in Puerto Rico is a complicated subject. We will provide you with some general information so you can fully examine the situation within your company to determine the reporting obligations.
We make payments to a nonemployee individual in Puerto Rico . . .
We make payments to a nonemployee individual in Puerto Rico for services. Do we report on a Form 1099?
These types of reporting situations are complicated and require a thorough review of all factors in the specific situation.
In general, you will first need to determine whether the payee is a U.S. person or a non-U.S. person. U.S. persons are taxed on their worldwide income, regardless of where they live.
How do we determine U.S. source income and reporting when . . .
How do we determine U.S. source income and reporting when the payee is in Puerto Rico?
You will first need to know the basics of reporting to U.S. payees and to non-U.S. payees.
Here is the general information:
U.S. payees are...
How do we report payments to vendors for services performed . . .
How do we report payments to vendors for services performed in a U.S. possession, such as St. Thomas or Guam?
Generally, U.S. possessions or territories are...