Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Can You File 2011 Taxes Now

Www Irs Gov Form 1040x InstructionsFile State TaxesFile My State Taxes Online FreeFile Free State TaxHow To File Amended Tax ReturnAmend My TaxesWww Freetaxusa ComMilitary TaxesFree 1040ez Online1040ez Instructions 2011Where Can I Get My State Taxes Done For Free2010 1040 Tax FormFile A Tax Extension Online1040ez Instruction BookFile Income Tax Online FreeIrs GovIrs Tax Forms 2011Download A 1040ez Federal Tax FormTaxact 20091040x For 2009Full Time StudentHow Do I File My 2011 TaxesTaxact 2012 Login Returning User1040ez GovInstructions For Filing An Amended Tax ReturnForm 1040 NrIrs Forms 20101040ez Tax FormsMypay Dfas Mil1040 Ez InstructionsFree Online Tax Filing Federal And StateTaxwise SoftwareIrs Extension FormFree Turbotax 2011 DownloadFree State Tax Return TurbotaxStudent Tax Form 1098 TForm 1040ez 2011Irs 2012 Tax Forms And InstructionsH&r Block Advantage Free FileHow To File 2011 Tax Return In 2013

Can You File 2011 Taxes Now

Can you file 2011 taxes now Publication 80 - Introductory Material Table of Contents Future Developments What's New Reminders Calendar Future Developments For the latest information about developments related to Publication 80 (Circular SS), such as legislation enacted after it was published, go to www. Can you file 2011 taxes now irs. Can you file 2011 taxes now gov/pub80. Can you file 2011 taxes now What's New Social security and Medicare tax for 2014. Can you file 2011 taxes now  The social security tax rate is 6. Can you file 2011 taxes now 2% each for the employee and employer, unchanged from 2013. Can you file 2011 taxes now The social security wage base limit is $117,000. Can you file 2011 taxes now The Medicare tax rate is 1. Can you file 2011 taxes now 45% each for the employee and employer, unchanged from 2013. Can you file 2011 taxes now There is no wage base limit for Medicare tax. Can you file 2011 taxes now Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. Can you file 2011 taxes now Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. Can you file 2011 taxes now Change of responsible party. Can you file 2011 taxes now . Can you file 2011 taxes now  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party—Business, to report the latest change to its responsible party. Can you file 2011 taxes now Form 8822-B must be filed within 60 days of the change. Can you file 2011 taxes now If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. Can you file 2011 taxes now For a definition of “responsible party”, see the Form 8822-B instructions. Can you file 2011 taxes now Same-sex marriage. Can you file 2011 taxes now  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Can you file 2011 taxes now For more information, see Revenue Ruling 2013-17, 2013-38 I. Can you file 2011 taxes now R. Can you file 2011 taxes now B. Can you file 2011 taxes now 201, available at www. Can you file 2011 taxes now irs. Can you file 2011 taxes now gov/irb/2013-38_IRB/ar07. Can you file 2011 taxes now html. Can you file 2011 taxes now Notice 2013-61 provides special administrative procedures for employers to make claims for refund or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. Can you file 2011 taxes now Notice 2013-61, 2013-44 I. Can you file 2011 taxes now R. Can you file 2011 taxes now B. Can you file 2011 taxes now 432, is available at www. Can you file 2011 taxes now irs. Can you file 2011 taxes now gov/irb/2013-44_IRB/ar10. Can you file 2011 taxes now html. Can you file 2011 taxes now Reminders Additional Medicare Tax withholding. Can you file 2011 taxes now  In addition to withholding Medicare tax at 1. Can you file 2011 taxes now 45%, you must withhold a 0. Can you file 2011 taxes now 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Can you file 2011 taxes now You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Can you file 2011 taxes now Additional Medicare Tax is only imposed on the employee. Can you file 2011 taxes now There is no employer share of Additional Medicare Tax. Can you file 2011 taxes now All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Can you file 2011 taxes now For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Employment and Payments , in section 12. Can you file 2011 taxes now For more information on Additional Medicare Tax, visit IRS. Can you file 2011 taxes now gov and enter “Additional Medicare Tax” in the search box. Can you file 2011 taxes now Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Can you file 2011 taxes now  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. Can you file 2011 taxes now Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Can you file 2011 taxes now For more information, visit IRS. Can you file 2011 taxes now gov and enter “work opportunity tax credit” in the search box. Can you file 2011 taxes now Outsourcing payroll duties. Can you file 2011 taxes now  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. Can you file 2011 taxes now The employer remains responsible if the third party fails to perform any required action. Can you file 2011 taxes now If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. Can you file 2011 taxes now gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. Can you file 2011 taxes now Residents of the Philippines working in the Commonwealth of the Northern Mariana Islands (CNMI). Can you file 2011 taxes now  The IRS will not assert that an employer has understated liability for social security and Medicare taxes because they failed to treat services performed before January 1, 2015, in the CNMI by a resident of the Philippines as employment as defined under Internal Revenue Code section 3121(b). Can you file 2011 taxes now For more information, see Announcement 2012-43, 2012-51 I. Can you file 2011 taxes now R. Can you file 2011 taxes now B. Can you file 2011 taxes now 723, available at www. Can you file 2011 taxes now irs. Can you file 2011 taxes now gov/irb/2012-51_IRB/ar15. Can you file 2011 taxes now html. Can you file 2011 taxes now CNMI government employees now subject to social security and Medicare taxes. Can you file 2011 taxes now  Beginning in the fourth calendar quarter of 2012, CNMI government employees are subject to social security and Medicare taxes. Can you file 2011 taxes now COBRA premium assistance credit. Can you file 2011 taxes now  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008 and May 31, 2010, and to premiums paid for up to 15 months. Can you file 2011 taxes now See COBRA premium assistance credit in Publication 15 (Circular E), Employer's Tax Guide. Can you file 2011 taxes now You can get Publication 15 (Circular E) at IRS. Can you file 2011 taxes now gov. Can you file 2011 taxes now You must receive written notice from the IRS to file Form 944. Can you file 2011 taxes now  If you have been filing Forms 941-SS and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941-SS, you must contact the IRS to request to file Form 944. Can you file 2011 taxes now You must receive written notice from the IRS to file Form 944 instead of Forms 941-SS before you may file this form. Can you file 2011 taxes now For more information on requesting to file Form 944 visit IRS. Can you file 2011 taxes now gov and enter “file employment taxes annually” in the search box. Can you file 2011 taxes now Federal employers in the CNMI. Can you file 2011 taxes now  The U. Can you file 2011 taxes now S. Can you file 2011 taxes now Treasury Department and the CNMI Division of Revenue and Taxation entered into an agreement under 5 USC 5517 in December 2006. Can you file 2011 taxes now Under this agreement, all federal employers (including the Department of Defense) are required to withhold CNMI income taxes (rather than federal income taxes) and deposit the CNMI taxes with the CNMI Treasury for employees who are subject to CNMI taxes and whose regular place of federal employment is in the CNMI. Can you file 2011 taxes now Federal employers are also required to file quarterly and annual reports with the CNMI Division of Revenue and Taxation. Can you file 2011 taxes now For questions, contact the CNMI Division of Revenue and Taxation. Can you file 2011 taxes now Change of address. Can you file 2011 taxes now  Use Form 8822-B to notify the IRS of an address change. Can you file 2011 taxes now Do not mail Form 8822-B with your employment tax return. Can you file 2011 taxes now Federal tax deposits must be made by electronic funds transfer. Can you file 2011 taxes now  You must use electronic funds transfer to make all federal tax deposits. Can you file 2011 taxes now Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Can you file 2011 taxes now If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Can you file 2011 taxes now Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Can you file 2011 taxes now EFTPS is a free service provided by the Department of Treasury. Can you file 2011 taxes now Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Can you file 2011 taxes now For more information on making federal tax deposits, see How To Deposit in section 8. Can you file 2011 taxes now For more information about EFTPS or to enroll in EFTPS, visit the EFTPS website at www. Can you file 2011 taxes now eftps. Can you file 2011 taxes now gov or call 1-800-555-4477 (U. Can you file 2011 taxes now S. Can you file 2011 taxes now Virgin Islands only) or 303-967-5916 (toll call) or 1-800-733-4829 (TDD). Can you file 2011 taxes now Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Can you file 2011 taxes now Electronic filing and payment. Can you file 2011 taxes now  Using electronic options can make filing a return and paying your federal tax easier. Can you file 2011 taxes now Use the Electronic Federal Tax Payment System (EFTPS) to make deposits or pay in full, whether you rely on a tax professional or prepare your own taxes. Can you file 2011 taxes now You can use IRS e-file to file certain returns. Can you file 2011 taxes now If there is a balance due on the return, you can e-file and e-pay in a single step by authorizing an electronic funds withdrawal (EFW) from your bank account while e-filing. Can you file 2011 taxes now Do not use EFW to pay taxes that are required to be deposited. Can you file 2011 taxes now Visit the IRS website at www. Can you file 2011 taxes now irs. Can you file 2011 taxes now gov/efile for more information on filing electronically. Can you file 2011 taxes now For more information on paying your taxes using EFW, visit the IRS website at www. Can you file 2011 taxes now irs. Can you file 2011 taxes now gov/e-pay. Can you file 2011 taxes now A fee may be charged to file electronically. Can you file 2011 taxes now For EFTPS, visit www. Can you file 2011 taxes now eftps. Can you file 2011 taxes now gov or call EFTPS Customer Service at 1-800-555-4477 (U. Can you file 2011 taxes now S. Can you file 2011 taxes now Virgin Islands only) or 303-967-5916 (toll call). Can you file 2011 taxes now For electronic filing of Forms W-2AS, W-2CM, W-2GU, W-2VI, Wage and Tax Statements; W-3SS, Transmittal of Wage and Tax Statements; and W-2c, Corrected Wage and Tax Statement, visit www. Can you file 2011 taxes now socialsecurity. Can you file 2011 taxes now gov/employer. Can you file 2011 taxes now If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. Can you file 2011 taxes now If a valid EIN is not provided, the return or payment will not be processed. Can you file 2011 taxes now This may result in penalties and delays in processing your return or payment. Can you file 2011 taxes now Electronic option for filing Forms W-2AS, W-2CM, W-2GU, or W-2VI. Can you file 2011 taxes now  Employers in American Samoa, the CNMI, Guam, and the U. Can you file 2011 taxes now S. Can you file 2011 taxes now Virgin Islands can now use the Social Security Administration's W-2 Online service to create, save, print, and submit up to 50 Forms W-2AS, W-2CM, W-2GU, or W-2VI at a time over the Internet. Can you file 2011 taxes now Form W-3SS will be generated automatically based on your Forms W-2AS, W-2CM, W-2GU, or W-2VI. Can you file 2011 taxes now For more information, visit Social Security Administration's SSA website at www. Can you file 2011 taxes now ssa. Can you file 2011 taxes now gov/bso/bsowelcome. Can you file 2011 taxes now htm. Can you file 2011 taxes now Credit or debit card payments. Can you file 2011 taxes now  For information on paying your taxes with a credit or debit card, visit the IRS website at www. Can you file 2011 taxes now irs. Can you file 2011 taxes now gov/e-pay. Can you file 2011 taxes now However, do not use credit or debit cards to make federal tax deposits. Can you file 2011 taxes now Hiring new employees. Can you file 2011 taxes now  Record the number and name from each new employee's social security card. Can you file 2011 taxes now An employee who does not have a social security card should apply for one on Form SS-5, Application for a Social Security Card. Can you file 2011 taxes now See section 3. Can you file 2011 taxes now Reporting discrepancies between Forms 941-SS (or Form 944) and Forms W-2. Can you file 2011 taxes now  File Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations, to explain certain wage, tax, and payment discrepancies between Forms 941-SS (or Form 944), and Forms W-2 that were caused by acquisitions, statutory mergers, or consolidations. Can you file 2011 taxes now For more information, see the Instructions for Schedule D (Form 941). Can you file 2011 taxes now Apply for an employer identification number (EIN) online. Can you file 2011 taxes now  You can apply for an EIN online by visiting IRS. Can you file 2011 taxes now gov and clicking on the Apply for an EIN Online link under Tools. Can you file 2011 taxes now Dishonored payments. Can you file 2011 taxes now  Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. Can you file 2011 taxes now The penalty is $25 or 2% of the payment, whichever is more. Can you file 2011 taxes now However, the penalty on dishonored payments of $24. Can you file 2011 taxes now 99 or less is an amount equal to the payment. Can you file 2011 taxes now For example, a dishonored payment of $18 is charged a penalty of $18. Can you file 2011 taxes now Private delivery services. Can you file 2011 taxes now  You can use certain private delivery services designated by the IRS to send tax returns or payments. Can you file 2011 taxes now The list includes only the following: DHL Express (DHL): DHL Same Day Service. Can you file 2011 taxes now Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Can you file 2011 taxes now United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Can you file 2011 taxes now M. Can you file 2011 taxes now , UPS Worldwide Express Plus, and UPS Worldwide Express. Can you file 2011 taxes now For the IRS mailing address to use if you are using a private delivery service, go to IRS. Can you file 2011 taxes now gov and enter “private delivery service” in the search box. Can you file 2011 taxes now Your private delivery service can tell you how to get written proof of the mailing date. Can you file 2011 taxes now Private delivery services cannot deliver items to P. Can you file 2011 taxes now O. Can you file 2011 taxes now boxes. Can you file 2011 taxes now You must use the U. Can you file 2011 taxes now S. Can you file 2011 taxes now Postal Service to mail any item to an IRS P. Can you file 2011 taxes now O. Can you file 2011 taxes now box address. Can you file 2011 taxes now Recordkeeping. Can you file 2011 taxes now  Keep all records of employment taxes for 4 years. Can you file 2011 taxes now These should be available for IRS review. Can you file 2011 taxes now There is no required format for such records, but they should include your EIN; the amounts and dates of all wage payments (including fringe benefits) and tips reported; the names, addresses, and occupations of employees receiving such payments and their social security numbers; copies of returns filed; dates of employment; and the dates and amounts of deposits made. Can you file 2011 taxes now Farm employers must keep a record of the name, permanent address, and EIN of each crew leader. Can you file 2011 taxes now See Farm Crew Leaders in section 2. Can you file 2011 taxes now Disregarded entities and qualified subchapter S subsidiaries (QSubs). Can you file 2011 taxes now  Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. Can you file 2011 taxes now Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. Can you file 2011 taxes now See Regulations sections 1. Can you file 2011 taxes now 1361-4(a)(7) and 301. Can you file 2011 taxes now 7701-2(c)(2)(iv). Can you file 2011 taxes now Photographs of missing children. Can you file 2011 taxes now  The IRS is a proud partner with the National Center for Missing and Exploited Children. Can you file 2011 taxes now Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Can you file 2011 taxes now You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Can you file 2011 taxes now Calendar   If any date for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Can you file 2011 taxes now A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. Can you file 2011 taxes now However, a statewide legal holiday does not delay the due date of federal tax deposits. Can you file 2011 taxes now See Deposits on Business Days Only in section 8. Can you file 2011 taxes now For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. Can you file 2011 taxes now S. Can you file 2011 taxes now Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. Can you file 2011 taxes now See Private delivery services under Reminders. Can you file 2011 taxes now The following are important dates and responsibilities. Can you file 2011 taxes now Also see Publication 509, Tax Calendars. Can you file 2011 taxes now By January 31. Can you file 2011 taxes now   Furnish wage and tax statements to employees. Can you file 2011 taxes now Give each employee a completed Form W-2AS, W-2CM, W-2GU, or W-2VI. Can you file 2011 taxes now See section 10 for more information. Can you file 2011 taxes now File Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, with the IRS. Can you file 2011 taxes now If you deposited all Form 943 taxes when due, you have 10 additional calendar days to file. Can you file 2011 taxes now U. Can you file 2011 taxes now S. Can you file 2011 taxes now Virgin Islands employers only must file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. Can you file 2011 taxes now Pay or deposit (if more than $500) any balance of the tax due. Can you file 2011 taxes now If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Can you file 2011 taxes now File Form 944 with the IRS if you were notified by the IRS to file Form 944 instead of quarterly Forms 941-SS. Can you file 2011 taxes now If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Can you file 2011 taxes now By February 28. Can you file 2011 taxes now  File paper wage and tax statements with the Social Security Administration (SSA). Can you file 2011 taxes now File Copy A of Forms W-2AS, W-2CM, W-2GU, or W-2VI, and Form W-3SS with the Social Security Administration (SSA). Can you file 2011 taxes now For electronically filed returns, see By March 31 next. Can you file 2011 taxes now By March 31. Can you file 2011 taxes now  File electronic Forms W-2AS, W-2CM, W-2GU, or W-2VI with the SSA. Can you file 2011 taxes now Visit the SSA's Reporting Instructions & Information webpage at www. Can you file 2011 taxes now socialsecurity. Can you file 2011 taxes now gov/employer for more information. Can you file 2011 taxes now By April 30, July 31, October 31, and January 31. Can you file 2011 taxes now  File Form 941-SS with the IRS. Can you file 2011 taxes now If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Can you file 2011 taxes now Do not file Forms 941-SS for these quarters if you have been notified to file Form 944 and you did not request to file quarterly Forms 941-SS. Can you file 2011 taxes now Deposit FUTA tax for the quarter (including any amount carried over from other quarters) if over $500. Can you file 2011 taxes now If $500 or less, carry it over to the next quarter. Can you file 2011 taxes now See section 11 for more information. Can you file 2011 taxes now Prev  Up  Next   Home   More Online Publications
Español

Courts and Legislatures

Resources to courts, legislatures, and laws.

The Can You File 2011 Taxes Now

Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now Taxpayer Identification NumbersUnexpected payment. Can you file 2011 taxes now Depositing Withheld TaxesWhen Deposits Are Required Adjustment for Overwithholding Returns RequiredJoint owners. Can you file 2011 taxes now Electronic reporting. Can you file 2011 taxes now Partnership Withholding on Effectively Connected IncomeWho Must Withhold Foreign Partner Publicly Traded Partnerships U. Can you file 2011 taxes now S. Can you file 2011 taxes now Real Property InterestForeign corporations. Can you file 2011 taxes now Domestic corporations. Can you file 2011 taxes now U. Can you file 2011 taxes now S. Can you file 2011 taxes now real property holding corporations. Can you file 2011 taxes now Partnerships. Can you file 2011 taxes now Trusts and estates. Can you file 2011 taxes now Domestically controlled QIE. Can you file 2011 taxes now Late filing of certifications or notices. Can you file 2011 taxes now Certifications. Can you file 2011 taxes now Liability of agent or qualified substitute. Can you file 2011 taxes now Reporting and Paying the Tax Withholding Certificates Tax Treaty TablesTable 1 Table 2 Table 3 How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Can you file 2011 taxes now Withholding of Tax In most cases, a foreign person is subject to U. Can you file 2011 taxes now S. Can you file 2011 taxes now tax on its U. Can you file 2011 taxes now S. Can you file 2011 taxes now source income. Can you file 2011 taxes now Most types of U. Can you file 2011 taxes now S. Can you file 2011 taxes now source income received by a foreign person are subject to U. Can you file 2011 taxes now S. Can you file 2011 taxes now tax of 30%. Can you file 2011 taxes now 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. Can you file 2011 taxes now The tax is generally withheld (NRA withholding) from the payment made to the foreign person. Can you file 2011 taxes now 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. Can you file 2011 taxes now In most cases, NRA withholding describes the withholding regime that requires withholding on a payment of U. Can you file 2011 taxes now S. Can you file 2011 taxes now source income. Can you file 2011 taxes now Payments to foreign persons, including nonresident alien individuals, foreign entities, and governments, may be subject to NRA withholding. Can you file 2011 taxes now NRA withholding does not include withholding under section 1445 of the Code (see U. Can you file 2011 taxes now S. Can you file 2011 taxes now Real Property Interest, later) or under section 1446 of the Code (see Partnership Withholding on Effectively Connected Income , later). Can you file 2011 taxes now A withholding agent (defined next) is the person responsible for withholding on payments made to a foreign person. Can you file 2011 taxes now However, a withholding agent that can reliably associate the payment with documentation (discussed later) from a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person is not required to withhold. Can you file 2011 taxes now 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. Can you file 2011 taxes now Withholding Agent You are a withholding agent if you are a U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now branch of certain foreign banks and insurance companies. Can you file 2011 taxes now 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. Can you file 2011 taxes now Although several persons may be withholding agents for a single payment, the full tax is required to be withheld only once. Can you file 2011 taxes now In most cases, the U. Can you file 2011 taxes now S. Can you file 2011 taxes now person who pays an amount subject to NRA withholding is the person responsible for withholding. Can you file 2011 taxes now However, other persons may be required to withhold. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now Liability for tax. Can you file 2011 taxes now   As a withholding agent, you are personally liable for any tax required to be withheld. Can you file 2011 taxes now This liability is independent of the tax liability of the foreign person to whom the payment is made. Can you file 2011 taxes now If you fail to withhold and the foreign payee fails to satisfy its U. Can you file 2011 taxes now S. Can you file 2011 taxes now tax liability, then both you and the foreign person are liable for tax, as well as interest and any applicable penalties. Can you file 2011 taxes now   The applicable tax will be collected only once. Can you file 2011 taxes now If the foreign person satisfies its U. Can you file 2011 taxes now S. Can you file 2011 taxes now tax liability, you are not liable for the tax but remain liable for any interest and penalties for failure to withhold. Can you file 2011 taxes now Determination of amount to withhold. Can you file 2011 taxes now   You must withhold on the gross amount subject to NRA withholding. Can you file 2011 taxes now You cannot reduce the gross amount by any deductions. Can you file 2011 taxes now However, see Scholarships and Fellowship Grants and Pay for Personal Services Performed , later, for when a deduction for a personal exemption may be allowed. Can you file 2011 taxes now   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. Can you file 2011 taxes now In no case, however, should you withhold more than 30% of the total amount paid. Can you file 2011 taxes now Or, you may make a reasonable estimate of the amount from U. Can you file 2011 taxes now S. Can you file 2011 taxes now sources and put a corresponding part of the amount due in escrow until the amount from U. Can you file 2011 taxes now S. Can you file 2011 taxes now sources can be determined, at which time withholding becomes due. Can you file 2011 taxes now When to withhold. Can you file 2011 taxes now   Withholding is required at the time you make a payment of an amount subject to withholding. Can you file 2011 taxes now 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. Can you file 2011 taxes now A payment is considered made to a person if it is paid for that person's benefit. Can you file 2011 taxes now 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. Can you file 2011 taxes now A payment also is considered made to a person if it is made to that person's agent. Can you file 2011 taxes now   A U. Can you file 2011 taxes now S. Can you file 2011 taxes now partnership should withhold when any distributions that include amounts subject to withholding are made. Can you file 2011 taxes now However, if a foreign partner's distributive share of income subject to withholding is not actually distributed, the U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now If the distributable amount consists of effectively connected income, see Partnership Withholding on Effectively Connected Income , later. Can you file 2011 taxes now A U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now To the extent a U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now (See Returns Required , later. Can you file 2011 taxes now ) 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. Can you file 2011 taxes now Form 1099 reporting and backup withholding. Can you file 2011 taxes now    You also may be responsible as a payer for reporting on Form 1099 payments made to a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person. Can you file 2011 taxes now You must withhold 28% (backup withholding rate) from a reportable payment made to a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person that is subject to Form 1099 reporting if any of the following apply. Can you file 2011 taxes now The U. Can you file 2011 taxes now S. Can you file 2011 taxes now person has not provided its taxpayer identification number (TIN) in the manner required. Can you file 2011 taxes now The IRS notifies you that the TIN furnished by the payee is incorrect. Can you file 2011 taxes now There has been a notified payee underreporting. Can you file 2011 taxes now There has been a payee certification failure. Can you file 2011 taxes now In most cases, a TIN must be provided by a U. Can you file 2011 taxes now S. Can you file 2011 taxes now non-exempt recipient on Form W-9, Request for Taxpayer Identification Number and Certification. Can you file 2011 taxes now A payer files a tax return on Form 945, Annual Return of Withheld Federal Income Tax, for backup withholding. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now person. Can you file 2011 taxes now For example, you are required to report income paid to a foreign intermediary or flow-through entity that collects for a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person subject to Form 1099 reporting. Can you file 2011 taxes now See Identifying the Payee , later, for more information. Can you file 2011 taxes now Also see Section S. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now Wages paid to employees. Can you file 2011 taxes now   If you are the employer of a nonresident alien, you generally must withhold taxes at graduated rates. Can you file 2011 taxes now See Pay for Personal Services Performed , later. Can you file 2011 taxes now Effectively connected income by partnerships. Can you file 2011 taxes now   A withholding agent that is a partnership (whether U. Can you file 2011 taxes now S. Can you file 2011 taxes now or foreign) is also responsible for withholding on its income effectively connected with a U. Can you file 2011 taxes now S. Can you file 2011 taxes now trade or business that is allocable to foreign partners. Can you file 2011 taxes now See Partnership Withholding on Effectively Connected Income , later, for more information. Can you file 2011 taxes now U. Can you file 2011 taxes now S. Can you file 2011 taxes now real property interest. Can you file 2011 taxes now   A withholding agent also may be responsible for withholding if a foreign person transfers a U. Can you file 2011 taxes now S. Can you file 2011 taxes now real property interest to the agent, or if it is a corporation, partnership, trust, or estate that distributes a U. Can you file 2011 taxes now S. Can you file 2011 taxes now real property interest to a shareholder, partner, or beneficiary that is a foreign person. Can you file 2011 taxes now See U. Can you file 2011 taxes now S. Can you file 2011 taxes now Real Property Interest , later. Can you file 2011 taxes now Persons Subject to NRA Withholding NRA withholding applies only to payments made to a payee that is a foreign person. Can you file 2011 taxes now It does not apply to payments made to U. Can you file 2011 taxes now S. Can you file 2011 taxes now persons. Can you file 2011 taxes now Usually, you determine the payee's status as a U. Can you file 2011 taxes now S. Can you file 2011 taxes now or foreign person based on the documentation that person provides. Can you file 2011 taxes now See Documentation , later. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now However, there are situations in which the payee is a person other than the one to whom you actually make a payment. Can you file 2011 taxes now U. Can you file 2011 taxes now S. Can you file 2011 taxes now agent of foreign person. Can you file 2011 taxes now   If you make a payment to a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person and you have actual knowledge that the U. Can you file 2011 taxes now S. Can you file 2011 taxes now person is receiving the payment as an agent of a foreign person, you must treat the payment as made to the foreign person. Can you file 2011 taxes now However, if the U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now   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. Can you file 2011 taxes now S. Can you file 2011 taxes now person and not as a payment to a foreign person. Can you file 2011 taxes now You may be required to report the payment on Form 1099 and, if applicable, backup withhold. Can you file 2011 taxes now Disregarded entities. Can you file 2011 taxes now   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. Can you file 2011 taxes now The payee of a payment made to a disregarded entity is the owner of the entity. Can you file 2011 taxes now   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. Can you file 2011 taxes now   If the owner is a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person, you do not apply NRA withholding. Can you file 2011 taxes now However, you may be required to report the payment on Form 1099 and, if applicable, backup withhold. Can you file 2011 taxes now 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. Can you file 2011 taxes now Flow-Through Entities The payees of payments (other than income effectively connected with a U. Can you file 2011 taxes now S. Can you file 2011 taxes now trade or business) made to a foreign flow-through entity are the owners or beneficiaries of the flow-through entity. Can you file 2011 taxes now This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Can you file 2011 taxes now Income that is, or is deemed to be, effectively connected with the conduct of a U. Can you file 2011 taxes now S. Can you file 2011 taxes now trade or business of a flow-through entity is treated as paid to the entity. Can you file 2011 taxes now All of the following are flow-through entities. Can you file 2011 taxes now A foreign partnership (other than a withholding foreign partnership). Can you file 2011 taxes now A foreign simple or foreign grantor trust (other than a withholding foreign trust). Can you file 2011 taxes now A fiscally transparent entity receiving income for which treaty benefits are claimed. Can you file 2011 taxes now See Fiscally transparent entity , later. Can you file 2011 taxes now 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. Can you file 2011 taxes now You also may be required to treat the entity as a flow-through entity under the presumption rules, discussed later. Can you file 2011 taxes now You must determine whether the owners or beneficiaries of a flow-through entity are U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now See Documentation and Presumption Rules , later. Can you file 2011 taxes now Withholding foreign partnerships and withholding foreign trusts are not flow-through entities. Can you file 2011 taxes now Foreign partnerships. Can you file 2011 taxes now    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. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now Example 1. Can you file 2011 taxes now A nonwithholding foreign partnership has three partners: a nonresident alien individual; a foreign corporation; and a U. Can you file 2011 taxes now S. Can you file 2011 taxes now citizen. Can you file 2011 taxes now You make a payment of U. Can you file 2011 taxes now S. Can you file 2011 taxes now source interest to the partnership. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now citizen. Can you file 2011 taxes now The partnership also gives you a complete withholding statement that enables you to associate a part of the interest payment to each partner. Can you file 2011 taxes now You must treat all three partners as the payees of the interest payment as if the payment were made directly to them. Can you file 2011 taxes now Report the payment to the nonresident alien and the foreign corporation on Forms 1042-S. Can you file 2011 taxes now Report the payment to the U. Can you file 2011 taxes now S. Can you file 2011 taxes now citizen on Form 1099-INT. Can you file 2011 taxes now Example 2. Can you file 2011 taxes now A nonwithholding foreign partnership has two partners: a foreign corporation and a nonwithholding foreign partnership. Can you file 2011 taxes now The second partnership has two partners, both nonresident alien individuals. Can you file 2011 taxes now You make a payment of U. Can you file 2011 taxes now S. Can you file 2011 taxes now source interest to the first partnership. Can you file 2011 taxes now 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. Can you file 2011 taxes now In addition, Forms W-8BEN from the partners are associated with the Form W-8IMY from the second partnership. Can you file 2011 taxes now The Forms W-8IMY from the partnerships have complete withholding statements associated with them. Can you file 2011 taxes now 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. Can you file 2011 taxes now Example 3. Can you file 2011 taxes now You make a payment of U. Can you file 2011 taxes now S. Can you file 2011 taxes now source dividends to a withholding foreign partnership. Can you file 2011 taxes now The partnership has two partners, both foreign corporations. Can you file 2011 taxes now 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. Can you file 2011 taxes now You must treat the partnership as the payee of the dividends. Can you file 2011 taxes now Foreign simple and grantor trust. Can you file 2011 taxes now   A trust is foreign unless it meets both of the following tests. Can you file 2011 taxes now A court within the United States is able to exercise primary supervision over the administration of the trust. Can you file 2011 taxes now One or more U. Can you file 2011 taxes now S. Can you file 2011 taxes now persons have the authority to control all substantial decisions of the trust. Can you file 2011 taxes now   In most cases, a foreign simple trust is a foreign trust that is required to distribute all of its income annually. Can you file 2011 taxes now A foreign grantor trust is a foreign trust that is treated as a grantor trust under sections 671 through 679 of the Code. Can you file 2011 taxes now   The payees of a payment made to a foreign simple trust are the beneficiaries of the trust. Can you file 2011 taxes now The payees of a payment made to a foreign grantor trust are the owners of the trust. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now Example. Can you file 2011 taxes now A foreign simple trust has three beneficiaries: two nonresident alien individuals and a U. Can you file 2011 taxes now S. Can you file 2011 taxes now citizen. Can you file 2011 taxes now You make a payment of interest to the foreign trust. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now citizen. Can you file 2011 taxes now 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. Can you file 2011 taxes now You must treat all three beneficiaries as the payees of the interest payment as if the payment were made directly to them. Can you file 2011 taxes now Report the payment to the nonresident aliens on Forms 1042-S. Can you file 2011 taxes now Report the payment to the U. Can you file 2011 taxes now S. Can you file 2011 taxes now citizen on Form 1099-INT. Can you file 2011 taxes now Fiscally transparent entity. Can you file 2011 taxes now   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. Can you file 2011 taxes now 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. Can you file 2011 taxes now ). Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now   The payees of a payment made to a fiscally transparent entity are the interest holders of the entity. Can you file 2011 taxes now Example. Can you file 2011 taxes now 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. Can you file 2011 taxes now A has two interest holders, B and C. Can you file 2011 taxes now B is a corporation organized under the laws of country Y. Can you file 2011 taxes now C is a corporation organized under the laws of country Z. Can you file 2011 taxes now Both countries Y and Z have an income tax treaty in force with the United States. Can you file 2011 taxes now A receives royalty income from U. Can you file 2011 taxes now S. Can you file 2011 taxes now sources that is not effectively connected with the conduct of a trade or business in the United States. Can you file 2011 taxes now For U. Can you file 2011 taxes now S. Can you file 2011 taxes now income tax purposes, A is treated as a partnership. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now Accordingly, A is fiscally transparent in its jurisdiction, country X. Can you file 2011 taxes now B and C are not fiscally transparent under the laws of their respective countries of incorporation. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now source royalty income for purposes of the U. Can you file 2011 taxes now S. Can you file 2011 taxes now -Y income tax treaty. Can you file 2011 taxes now 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. Can you file 2011 taxes now Therefore, A is not treated as fiscally transparent under the laws of country Z. Can you file 2011 taxes now Accordingly, C is not treated as deriving its share of the U. Can you file 2011 taxes now S. Can you file 2011 taxes now source royalty income for purposes of the U. Can you file 2011 taxes now S. Can you file 2011 taxes now -Z income tax treaty. Can you file 2011 taxes now 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. Can you file 2011 taxes now This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Can you file 2011 taxes now 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. Can you file 2011 taxes now An intermediary is a custodian, broker, nominee, or any other person that acts as an agent for another person. Can you file 2011 taxes now A foreign intermediary is either a qualified intermediary or a nonqualified intermediary. Can you file 2011 taxes now 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. Can you file 2011 taxes now You must determine whether the customers or account holders of a foreign intermediary are U. Can you file 2011 taxes now S. Can you file 2011 taxes now or foreign persons and, if the account holder or customer is foreign, whether a reduced rate of NRA withholding applies. Can you file 2011 taxes now You make these determinations based on the foreign intermediary's Form W-8IMY and associated information and documentation. Can you file 2011 taxes now 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. Can you file 2011 taxes now See Documentation and Presumption Rules , later. Can you file 2011 taxes now Nonqualified intermediary. Can you file 2011 taxes now   A nonqualified intermediary (NQI) is any intermediary that is a foreign person and that is not a qualified intermediary. Can you file 2011 taxes now The payees of a payment made to an NQI are the customers or account holders on whose behalf the NQI is acting. Can you file 2011 taxes now Example. Can you file 2011 taxes now You make a payment of interest to a foreign bank that is a nonqualified intermediary. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now person for whom the bank is collecting the payments. Can you file 2011 taxes now 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. Can you file 2011 taxes now The account holders are the payees of the interest payment. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now person on Form 1099-INT. Can you file 2011 taxes now Qualified intermediary. Can you file 2011 taxes now   A qualified intermediary (QI) is any foreign intermediary (or foreign branch of a U. Can you file 2011 taxes now S. Can you file 2011 taxes now intermediary) that has entered into a qualified intermediary withholding agreement (discussed later) with the IRS. Can you file 2011 taxes now 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. Can you file 2011 taxes now In this situation, the QI is required to withhold the tax. Can you file 2011 taxes now You can determine whether a QI has assumed responsibility from the Form W-8IMY provided by the QI. Can you file 2011 taxes now   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. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now person. Can you file 2011 taxes now Branches of financial institutions. Can you file 2011 taxes now   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. Can you file 2011 taxes now The countries with approved KYC rules are listed on IRS. Can you file 2011 taxes now gov. Can you file 2011 taxes now QI withholding agreement. Can you file 2011 taxes now   Foreign financial institutions and foreign branches of U. Can you file 2011 taxes now S. Can you file 2011 taxes now financial institutions can enter into an agreement with the IRS to be a qualified intermediary. Can you file 2011 taxes now   A QI is entitled to certain simplified withholding and reporting rules. Can you file 2011 taxes now In general, there are three major areas whereby intermediaries with QI status are afforded such simplified treatment. Can you file 2011 taxes now   To apply for QI status, complete Form 14345, Qualified Intermediary Application, and Form SS-4, Application for Employer Identification Number. Can you file 2011 taxes now These forms, and the procedures required to obtain a QI withholding agreement are available at www. Can you file 2011 taxes now irs. Can you file 2011 taxes now gov/Businesses/Corporations/Qualified-Intermediaries-(QI). Can you file 2011 taxes now Documentation. Can you file 2011 taxes now   A QI is not required to forward documentation obtained from foreign account holders to the U. Can you file 2011 taxes now S. Can you file 2011 taxes now withholding agent from whom the QI receives a payment of U. Can you file 2011 taxes now S. Can you file 2011 taxes now source income. Can you file 2011 taxes now The QI maintains such documentation at its location and provides the U. Can you file 2011 taxes now S. Can you file 2011 taxes now withholding agent with withholding rate pools. Can you file 2011 taxes now A withholding rate pool is a payment of a single type of income that is subject to a single rate of withholding. Can you file 2011 taxes now   A QI is required to provide the U. Can you file 2011 taxes now S. Can you file 2011 taxes now withholding agent with information regarding U. Can you file 2011 taxes now S. Can you file 2011 taxes now persons subject to Form 1099 information reporting unless the QI assumes the primary obligation to do Form 1099 reporting and backup withholding. Can you file 2011 taxes now   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. Can you file 2011 taxes now 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. Can you file 2011 taxes now Form 1042-S reporting. Can you file 2011 taxes now   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. Can you file 2011 taxes now Pooled basis reporting is not available for payments to certain account holders, such as a nonqualified intermediary or a flow-through entity (discussed earlier). Can you file 2011 taxes now Collective refund procedures. Can you file 2011 taxes now   A QI may seek a refund on behalf of its direct account holders. Can you file 2011 taxes now 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. Can you file 2011 taxes now U. Can you file 2011 taxes now S. Can you file 2011 taxes now branches of foreign banks and foreign insurance companies. Can you file 2011 taxes now   Special rules apply to a U. Can you file 2011 taxes now S. Can you file 2011 taxes now branch of a foreign bank subject to Federal Reserve Board supervision or a foreign insurance company subject to state regulatory supervision. Can you file 2011 taxes now If you agree to treat the branch as a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person, you may treat the branch as a U. Can you file 2011 taxes now S. Can you file 2011 taxes now payee for a payment subject to NRA withholding provided you receive a Form W-8IMY from the U. Can you file 2011 taxes now S. Can you file 2011 taxes now branch on which the agreement is evidenced. Can you file 2011 taxes now If you treat the branch as a U. Can you file 2011 taxes now S. Can you file 2011 taxes now payee, you are not required to withhold. Can you file 2011 taxes now Even though you agree to treat the branch as a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person, you must report the payment on Form 1042-S. Can you file 2011 taxes now   A financial institution organized in a U. Can you file 2011 taxes now S. Can you file 2011 taxes now possession is treated as a U. Can you file 2011 taxes now S. Can you file 2011 taxes now branch. Can you file 2011 taxes now The special rules discussed in this section apply to a possessions financial institution. Can you file 2011 taxes now   If you are paying a U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now person for amounts subject to NRA withholding. Can you file 2011 taxes now Consequently, amounts not subject to NRA withholding that are paid to a U. Can you file 2011 taxes now S. Can you file 2011 taxes now branch are not subject to Form 1099 reporting or backup withholding. Can you file 2011 taxes now   Alternatively, a U. Can you file 2011 taxes now S. Can you file 2011 taxes now branch may provide you with a Form W-8IMY with which it associates the documentation of the persons on whose behalf it acts. Can you file 2011 taxes now 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. Can you file 2011 taxes now See Nonqualified Intermediaries under  Documentation, later. Can you file 2011 taxes now   If the U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now Withholding foreign partnership and foreign trust. Can you file 2011 taxes now   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. Can you file 2011 taxes now 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. Can you file 2011 taxes now   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. Can you file 2011 taxes now A WP or WT acting in that capacity must assume NRA withholding responsibility for these amounts. Can you file 2011 taxes now 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. Can you file 2011 taxes now WP and WT withholding agreements. Can you file 2011 taxes now   The WP and WT withholding agreements and the application procedures for the agreements are in Revenue Procedure 2003-64. Can you file 2011 taxes now Also see the following items. Can you file 2011 taxes now Revenue Procedure 2004-21. Can you file 2011 taxes now Revenue Procedure 2005-77. Can you file 2011 taxes now Employer identification number (EIN). Can you file 2011 taxes now   A completed Form SS-4 must be submitted with the application for being a WP or WT. Can you file 2011 taxes now The WP or WT will be assigned a WP-EIN or WT-EIN to be used only when acting in that capacity. Can you file 2011 taxes now Documentation. Can you file 2011 taxes now   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. Can you file 2011 taxes now 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. Can you file 2011 taxes now The Form W-8IMY must contain the WP-EIN or WT-EIN. Can you file 2011 taxes now Foreign Persons A payee is subject to NRA withholding only if it is a foreign person. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now person. Can you file 2011 taxes now It also includes a foreign branch of a U. Can you file 2011 taxes now S. Can you file 2011 taxes now financial institution if the foreign branch is a qualified intermediary. Can you file 2011 taxes now In most cases, the U. Can you file 2011 taxes now S. Can you file 2011 taxes now branch of a foreign corporation or partnership is treated as a foreign person. Can you file 2011 taxes now Nonresident alien. Can you file 2011 taxes now   A nonresident alien is an individual who is not a U. Can you file 2011 taxes now S. Can you file 2011 taxes now citizen or a resident alien. Can you file 2011 taxes now A resident of a foreign country under the residence article of an income tax treaty is a nonresident alien individual for purposes of withholding. Can you file 2011 taxes now Married to U. Can you file 2011 taxes now S. Can you file 2011 taxes now citizen or resident alien. Can you file 2011 taxes now   Nonresident alien individuals married to U. Can you file 2011 taxes now S. Can you file 2011 taxes now citizens or resident aliens may choose to be treated as resident aliens for certain income tax purposes. Can you file 2011 taxes now However, these individuals are still subject to the NRA withholding rules that apply to nonresident aliens for all income except wages. Can you file 2011 taxes now Wages paid to these individuals are subject to graduated withholding. Can you file 2011 taxes now See Wages Paid to Employees—Graduated Withholding . Can you file 2011 taxes now Resident alien. Can you file 2011 taxes now   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. Can you file 2011 taxes now Green card test. Can you file 2011 taxes now 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. Can you file 2011 taxes now This is known as the green card test because these aliens hold immigrant visas (also known as green cards). Can you file 2011 taxes now Substantial presence test. Can you file 2011 taxes now An alien is considered a resident alien if the individual meets the substantial presence test for the calendar year. Can you file 2011 taxes now 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. Can you file 2011 taxes now   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. Can you file 2011 taxes now This exception is for a limited period of time. Can you file 2011 taxes now   For more information on resident and nonresident status, the tests for residence, and the exceptions to them, see Publication 519. Can you file 2011 taxes now Note. Can you file 2011 taxes now   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. Can you file 2011 taxes now For more information on making adjustments, see chapter 13 of Publication 15 (Circular E). Can you file 2011 taxes now Resident of a U. Can you file 2011 taxes now S. Can you file 2011 taxes now possession. Can you file 2011 taxes now   A bona fide resident of Puerto Rico, the U. Can you file 2011 taxes now S. Can you file 2011 taxes now Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), or American Samoa who is not a U. Can you file 2011 taxes now S. Can you file 2011 taxes now citizen or a U. Can you file 2011 taxes now S. Can you file 2011 taxes now national is treated as a nonresident alien for the withholding rules explained here. Can you file 2011 taxes now 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. Can you file 2011 taxes now   For more information, see Publication 570, Tax Guide for Individuals With Income From U. Can you file 2011 taxes now S. Can you file 2011 taxes now Possessions. Can you file 2011 taxes now Foreign corporations. Can you file 2011 taxes now   A foreign corporation is one that does not fit the definition of a domestic corporation. Can you file 2011 taxes now 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. Can you file 2011 taxes now Guam or Northern Mariana Islands corporations. Can you file 2011 taxes now   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). Can you file 2011 taxes now Note. Can you file 2011 taxes now   The provisions discussed below under U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now U. Can you file 2011 taxes now S. Can you file 2011 taxes now Virgin Islands and American Samoa corporations. Can you file 2011 taxes now   A corporation created or organized in, or under the laws of, the U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now Virgin Islands, American Samoa, Guam, the CNMI, or the United States. Can you file 2011 taxes now Foreign private foundations. Can you file 2011 taxes now   A private foundation that was created or organized under the laws of a foreign country is a foreign private foundation. Can you file 2011 taxes now 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. Can you file 2011 taxes now Other foreign organizations, associations, and charitable institutions. Can you file 2011 taxes now   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. Can you file 2011 taxes now 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. Can you file 2011 taxes now   Payments to these organizations, however, must be reported on Form 1042-S, even though no tax is withheld. Can you file 2011 taxes now   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. Can you file 2011 taxes now U. Can you file 2011 taxes now S. Can you file 2011 taxes now branches of foreign persons. Can you file 2011 taxes now   In most cases, a payment to a U. Can you file 2011 taxes now S. Can you file 2011 taxes now branch of a foreign person is a payment made to the foreign person. Can you file 2011 taxes now However, you may treat payments to U. Can you file 2011 taxes now S. Can you file 2011 taxes now branches of foreign banks and foreign insurance companies (discussed earlier) that are subject to U. Can you file 2011 taxes now S. Can you file 2011 taxes now regulatory supervision as payments made to a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person, if you and the U. Can you file 2011 taxes now S. Can you file 2011 taxes now branch have agreed to do so, and if their agreement is evidenced by a withholding certificate, Form W-8IMY. Can you file 2011 taxes now For this purpose, a financial institution organized under the laws of a U. Can you file 2011 taxes now S. Can you file 2011 taxes now possession is treated as a U. Can you file 2011 taxes now S. Can you file 2011 taxes now branch. Can you file 2011 taxes now 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. Can you file 2011 taxes now The payee is a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person. Can you file 2011 taxes now The payee is a foreign person that is the beneficial owner of the income and is entitled to a reduced rate of withholding. Can you file 2011 taxes now In most cases, you must get the documentation before you make the payment. Can you file 2011 taxes now The documentation is not valid if you know, or have reason to know, that it is unreliable or incorrect. Can you file 2011 taxes now See Standards of Knowledge , later. Can you file 2011 taxes now If you cannot reliably associate a payment with valid documentation, you must use the presumption rules discussed later. Can you file 2011 taxes now 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. Can you file 2011 taxes now The specific types of documentation are discussed in this section. Can you file 2011 taxes now However, see Withholding on Specific Income , later, as well as the instructions to the particular forms. Can you file 2011 taxes now 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. Can you file 2011 taxes now Section 1446 withholding. Can you file 2011 taxes now   Under section 1446 of the Code, a partnership must withhold tax on its effectively connected income allocable to a foreign partner. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now Joint owners. Can you file 2011 taxes now    If you make a payment to joint owners, you need to get documentation from each owner. Can you file 2011 taxes now Form W-9. Can you file 2011 taxes now   In most cases, you can treat the payee as a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person if the payee gives you a Form W-9. Can you file 2011 taxes now The Form W-9 can be used only by a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person and must contain the payee's taxpayer identification number (TIN). Can you file 2011 taxes now If there is more than one owner, you may treat the total amount as paid to a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person if any one of the owners gives you a Form W-9. Can you file 2011 taxes now See U. Can you file 2011 taxes now S. Can you file 2011 taxes now Taxpayer Identification Numbers , later. Can you file 2011 taxes now U. Can you file 2011 taxes now S. Can you file 2011 taxes now persons are not subject to NRA withholding, but may be subject to Form 1099 reporting and backup withholding. Can you file 2011 taxes now Form W-8. Can you file 2011 taxes now   In most cases, a foreign payee of the income should give you a form in the Form W-8 series. Can you file 2011 taxes now Until further notice, you can rely upon Forms W-8 that contain a P. Can you file 2011 taxes now O. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now person and that a street address is available. Can you file 2011 taxes now You may rely on Forms W-8 for which there is a U. Can you file 2011 taxes now S. Can you file 2011 taxes now mailing address provided you received the form prior to December 31, 2001. Can you file 2011 taxes now   If certain requirements are met, the foreign person can give you documentary evidence, rather than a Form W-8. Can you file 2011 taxes now You can rely on documentary evidence in lieu of a Form W-8 for a payment made in a U. Can you file 2011 taxes now S. Can you file 2011 taxes now possession. Can you file 2011 taxes now Other documentation. Can you file 2011 taxes now   Other documentation may be required to claim an exemption from, or a reduced rate of, withholding on pay for personal services. Can you file 2011 taxes now 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. Can you file 2011 taxes now These forms are discussed in Pay for Personal Services Performed under Withholding on Specific Income. Can you file 2011 taxes now 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. Can you file 2011 taxes now Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. Can you file 2011 taxes now   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. Can you file 2011 taxes now   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. Can you file 2011 taxes now 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. Can you file 2011 taxes now Claiming treaty benefits. Can you file 2011 taxes now   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. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now   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. Can you file 2011 taxes now   An entity derives income for which it is claiming treaty benefits only if the entity is not treated as fiscally transparent for that income. Can you file 2011 taxes now See Fiscally transparent entity discussed earlier under Flow-Through Entities. Can you file 2011 taxes now   Limitations on benefits provisions generally prohibit third country residents from obtaining treaty benefits. Can you file 2011 taxes now 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. Can you file 2011 taxes now   The exemptions from, or reduced rates of, U. Can you file 2011 taxes now S. Can you file 2011 taxes now tax vary under each treaty. Can you file 2011 taxes now You must check the provisions of the tax treaty that apply. Can you file 2011 taxes now 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. Can you file 2011 taxes now   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. Can you file 2011 taxes now 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. Can you file 2011 taxes now Exceptions to TIN requirement. Can you file 2011 taxes now   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. Can you file 2011 taxes now Income from marketable securities (discussed next). Can you file 2011 taxes now Unexpected payments to an individual (discussed under U. Can you file 2011 taxes now S. Can you file 2011 taxes now Taxpayer Identification Numbers ). Can you file 2011 taxes now Marketable securities. Can you file 2011 taxes now   A Form W-8BEN provided to claim treaty benefits does not need a U. Can you file 2011 taxes now S. Can you file 2011 taxes now TIN if the foreign beneficial owner is claiming the benefits on income from marketable securities. Can you file 2011 taxes now For this purpose, income from a marketable security consists of the following items. Can you file 2011 taxes now Dividends and interest from stocks and debt obligations that are actively traded. Can you file 2011 taxes now Dividends from any redeemable security issued by an investment company registered under the Investment Company Act of 1940 (mutual fund). Can you file 2011 taxes now 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. Can you file 2011 taxes now Income related to loans of any of the above securities. Can you file 2011 taxes now Offshore accounts. Can you file 2011 taxes now   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. Can you file 2011 taxes now   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. Can you file 2011 taxes now 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. Can you file 2011 taxes now An offshore account is an account maintained at an office or branch of a U. Can you file 2011 taxes now S. Can you file 2011 taxes now or foreign bank or other financial institution at any location outside the United States. Can you file 2011 taxes now   You may rely on documentary evidence given to you by a nonqualified intermediary or a flow-through entity with its Form W-8IMY. Can you file 2011 taxes now This rule applies even though you make the payment to a nonqualified intermediary or flow-through entity in the United States. Can you file 2011 taxes now 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. Can you file 2011 taxes now Documentary evidence. Can you file 2011 taxes now   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. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now   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. Can you file 2011 taxes now (See Effectively Connected Income , later. Can you file 2011 taxes now )   Effectively connected income for which a valid Form W-8ECI has been provided is generally not subject to NRA withholding. Can you file 2011 taxes now   If a partner submits this form to a partnership, the income claimed to be effectively connected with the conduct of a U. Can you file 2011 taxes now S. Can you file 2011 taxes now trade or business is subject to withholding under section 1446. Can you file 2011 taxes now 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. Can you file 2011 taxes now    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. Can you file 2011 taxes now Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding. Can you file 2011 taxes now   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. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now   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. Can you file 2011 taxes now   See Foreign Governments and Certain Other Foreign Organizations , later. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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. Can you file 2011 taxes now The additional information required depends on the type of intermediary or flow-through entity and the extent of the withholding responsibilities it assumes. Can you file 2011 taxes now Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U. Can you file 2011 taxes now S. Can you file 2011 taxes now Branches for United States Tax Withholding. Can you file 2011 taxes now   This form is used by foreign intermediaries and foreign flow-through entities, as well as certain U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now branch of a foreign bank or insurance company and either is agreeing to be treated as a U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now For information on qualifying as an upper-tier foreign partnership, see Regulations section 1. Can you file 2011 taxes now 1446-5. Can you file 2011 taxes now Qualified Intermediaries In most cases, a QI is any foreign intermediary that has entered into a QI withholding agreement (discussed earlier) with the IRS. Can you file 2011 taxes now 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. Can you file 2011 taxes now The intermediary can claim that it is a QI until the IRS revokes its QI-EIN. Can you file 2011 taxes now 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. Can you file 2011 taxes now Responsibilities. Can you file 2011 taxes now   Payments made to a QI that does not assume NRA withholding responsibility are treated as paid to its account holders and customers. Can you file 2011 taxes now However, a QI is not required to provide you with documentation it obtains from its foreign account holders and customers. Can you file 2011 taxes now Instead, it provides you with a withholding statement that contains withholding rate pool information. Can you file 2011 taxes now 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. Can you file 2011 taxes now A qualified intermediary is required to provide you with information regarding U. Can you file 2011 taxes now S. Can you file 2011 taxes now persons subject to Form 1099 reporting and to provide you withholding rate pool information separately for each such U. Can you file 2011 taxes now S. Can you file 2011 taxes now person unless it has assumed Form 1099 reporting and backup withholding responsibility. Can you file 2011 taxes now For the alternative procedure for providing rate pool information for U. Can you file 2011 taxes now S. Can you file 2011 taxes now non-exempt persons, see the Form W-8IMY instructions. Can you file 2011 taxes now   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. Can you file 2011 taxes now   The extent to which you must have withholding rate pool information depends on the withholding and reporting obligations assumed by the QI. Can you file 2011 taxes now Primary responsibility not assumed. Can you file 2011 taxes now   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. Can you file 2011 taxes now Unless the alternative procedure applies, the qualified intermediary must provide you with a separate withholding rate pool for each U. Can you file 2011 taxes now S. Can you file 2011 taxes now person subject to Form 1099 reporting and/or backup withholding. Can you file 2011 taxes now 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. Can you file 2011 taxes now Primary NRA withholding responsibility assumed. Can you file 2011 taxes now   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. Can you file 2011 taxes now S. Can you file 2011 taxes now person, unless the alternative procedure applies, subject to Form 1099 reporting and/or backup withholding. Can you file 2011 taxes now 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. Can you file 2011 taxes now Primary NRA and Form 1099 responsibility assumed. Can you file 2011 taxes now   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. Can you file 2011 taxes now It is not necessary to associate the payment with withholding rate pools. Can you file 2011 taxes now Example. Can you file 2011 taxes now You make a payment of dividends to a QI. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now individual who provides it with a Form W-9. Can you file 2011 taxes now Each customer is entitled to 20% of the dividend payment. Can you file 2011 taxes now The QI does not assume any primary withholding responsibility. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now individual. Can you file 2011 taxes now 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. Can you file 2011 taxes now The part of the payment allocable to the U. Can you file 2011 taxes now S. Can you file 2011 taxes now individual (20%) is reportable on Form 1099-DIV. Can you file 2011 taxes now Smaller partnerships and trusts. Can you file 2011 taxes now   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. Can you file 2011 taxes now It is a foreign partnership or foreign simple or grantor trust. Can you file 2011 taxes now It is a direct account holder of the QI. Can you file 2011 taxes now It does not have any partner, beneficiary, or owner that is a U. Can you file 2011 taxes now S. Can you file 2011 taxes now person or a pass- through partner, beneficiary, or owner. Can you file 2011 taxes now   For information on these rules, see section 4A. Can you file 2011 taxes now 01 of the QI agreement. Can you file 2011 taxes now This is found in Appendix 3 of Revenue Procedure 2003-64. Can you file 2011 taxes now Also see Revenue Procedure 2004-21. Can you file 2011 taxes now Related partnerships and trusts. Can you file 2011 taxes now    A QI may apply special rules to a related partnership or trust only if the partnership or trust meets the following conditions. Can you file 2011 taxes now It is a foreign partnership or foreign simple or grantor trust. Can you file 2011 taxes now 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. Can you file 2011 taxes now For information on these rules, see section 4A. Can you file 2011 taxes now 02 of the QI agreement. Can you file 2011 taxes now This is found in Appendix 3 of Revenue Procedure 2003-64. Can you file 2011 taxes now Also see Revenue Procedure 2005-77. Can you file 2011 taxes now Nonqualified Intermediaries If you are making a payment to an NQI, foreign flow-through entity, or U. Can you file 2011 taxes now S. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now branch), and You have sufficient information to report the payment on Form 1042-S or Form 1099, if reporting is required. Can you file 2011 taxes now The NQI, flow-through entity, or U. Can you file 2011 taxes now S. Can you file 2011 taxes now branch must give you certain information on a withholding statement that is associated with the Form W-8IMY. Can you file 2011 taxes now A withholding statement must be updated to keep the information accurate prior to each payment. Can you file 2011 taxes now Withholding statement. Can you file 2011 taxes now   In most cases, a withholding statement must contain the following information. Can you file 2011 taxes now The name, address, and TIN (if any, or if required) of each person for whom documentation is provided. Can you file 2011 taxes now The type of documentation (documentary evidence, Form W-8, or Form W-9) for every person for whom documentation has been provided. Can you file 2011 taxes now The status of the person for whom the documentation has been provided, such as whether the person is a U. Can you file 2011 taxes now S. Can you file 2011 taxes now exempt recipient (U. Can you file 2011 taxes now S. Can you file 2011 taxes now person exempt from Form 1099 reporting), U. Can you file 2011 taxes now S. Can you file 2011 taxes now non-exempt recipient (U. Can you file 2011 taxes now S. Can you file 2011 taxes now person subject to Form 1099 reporting), or a foreign person. Can you file 2011 taxes now 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. Can you file 2011 taxes now S. Can you file 2011 taxes now branch. Can you file 2011 taxes now The type of recipient the person is, based on the recipient codes used on Form 1042-S. Can you file 2011 taxes now Information allocating each payment, by income type, to each payee (including U. Can you file 2011 taxes now S. Can you file 2011 taxes now exempt and U. Can you file 2011 taxes now S. Can you file 2011 taxes now non-exempt recipients) for whom documentation has been provided. Can you file 2011 taxes now The rate of withholding that applies to each foreign person to whom a payment is allocated. Can you file 2011 taxes now A foreign payee's country of residence. Can you file 2011 taxes now If a reduced rate of withholding is claimed, the basis for a reduced rate of withholding (for example, portfolio interest, treaty benefit, etc. Can you file 2011 taxes now ). Can you file 2011 taxes now 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. Can you file 2011 taxes now The name, address, and TIN (if any) of any other NQI, flow-through entity, or U. Can you file 2011 taxes now S. Can you file 2011 taxes now branch from which the payee will directly receive a payment. Can you file 2011 taxes now Any other information a withholding agent requests to fulfill its reporting and withholding obligations. Can you file 2011 taxes now Alternative procedure. Can you file 2011 taxes now   Under this alternative procedure the NQI can give you the information that allocates each payment to each foreign and U. Can you file 2011 taxes now S. Can you file 2011 taxes now exempt recipient by January 31 following the calendar year of payment, rather than prior to the payment being made as otherwise required. Can you file 2011 taxes now 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. Can you file 2011 taxes now You must receive the withholding statement with all the required information (other than item 5) prior to making the payment. Can you file 2011 taxes now    This alternative procedure cannot be used for payments to U. Can you file 2011 taxes now S. Can you file 2011 taxes now non-exempt recipients. Can you file 2011 taxes now Therefore, an NQI must always provide you with allocation information for all U. Can you file 2011 taxes now S. Can you file 2011 taxes now non-exempt recipients prior to a payment being made. Can you file 2011 taxes now Pooled withholding information. Can you file 2011 taxes now   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. Can you file 2011 taxes now 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. Can you file 2011 taxes now 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). Can you file 2011 taxes now 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. Can you file 2011 taxes now Failure to provide allocation information. Can you file 2011 taxes now   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. Can you file 2011 taxes now You must treat the payees as undocumented and apply the presumption rules, discussed later in Presumption Rules . Can you file 2011 taxes now An NQI is deemed to have f