Possible Non-Resident Alien and Questionable SSN
Foreign person reporting: I recently received a payment request for a individual with a SSN that begins with 99. My recollection is that this means a foreign national. Is this correct? I ran the name and number through the IRS database and it matched. Assuming a foreign national, my research shows I need a form W8BEN and must withhold 30%. But since the person has a valid tax id (ITIN?), is this still true? What else do I need to do? Is the withholding amount still correct?
Services Paid in US Dollars and Euro's: How to Report
We paid a US Company for a 1099 reportable service in both US dollars and Eurodollars. The Eurodollar payment was for services outside of the US. I wanted to check the following: 1. I wanted to confirm that unlike the 1042 reporting requirements where services outside the US are not reportable, that the Eurodollar payment is 1099 reportable. 2. Assuming the Eurodollar payment is 1099 reportable, I wanted to check and see if there are any special rules we need to know about where non-US currency is concerned. Would we just use the exchange rate in effect on the date of the payment?
If you make a payment that . . .
Payment to a Non Resident Alien Individual
Company A is to pay an alien individual $3,000. If the alien is a non-resident alien, then is mandatory 30% witholding required and should a Form 1042 be issued. If the alien meets the substantial presence test, then is the person a resident alien? Does it matter if the person is in the country legally or not? If a person is a resident alien, would a Form 1099 be issued for a payment made to the person? If the resident alien does not have a social security number, can a resident alient apply for a TIN, which would allow for a 1099 to be issed to the person?
Question #1: Yes, unless th . . .
1099-C and UK Resident
1099C on Non-resident - We have a 1099C that we need to report, but the borrower does not have a TIN as they are a resident of the United Kingdom. Since the borrower is a resident of the UK are we required to do a 1099C? If, so do we file it with no TIN/SSN? Or is there some other type of reporting we need to do in place of the 1099C?
There are a couple of thing . . .
Corrections for Non Resident Aliens
We have an account where the client signed a W9 form and indicated they are a US citizen, based upon the W9 we the client signed 12/09/04, we reported the client's income for 2005 on a form 1099B and 1099DIV. Recently the client received notice from the IRS that they are required to pay taxes on this income. The client has requested a corrected 1099 form from us showing no income since they now claim they were not a US citizen during the 2005 Tax Year and they paid income taxes to the United Kingdom for 2005. We are planning not to issue a correction since the client signed a W9 and we are planning to tell the client that they need to work this out with the IRS. Do you agree with our stance, can you offer any guidance as to what the IRS may suggest,either we, or our former client, should do in this type of situation?