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

Turbotax Deluxe Federal E File State 2010 Old Version

File My 2011 Tax ReturnFile 2006 Taxes FreeHow To File A Tax ExtensionFile 2010 Taxes OnlineTaxes AmendmentStateincometaxformEz 1040 Form 2012Need To File 2010 TaxesHow Do I File An Amended Tax ReturnIrs Free File Fillable FormsH&r Block Amended Tax Return2012 1040ezHow To Amend A Previous Tax ReturnFreetaxusa 2007Amendment Tax Return2011 Tax Returns2014 1040ez Tax Form1040x IrsAmendedFile 2012 Taxes Free OnlineHrblock FreereturnTurbotax 2011 EditionFree Income Tax ReturnHow To File State Tax2011 Tax BracketsAmended ReturnInstructions For Filing 1040ezFile 2012 Tax Return Online1040ez File On LineFiling 2009 Taxes In 2013Free Site To File State TaxesHow Much Does H&r Block Charge To Prepare TaxesRevise Tax ReturnEz File 1040Turbotax Free FileIrs 1040ez 2012Hr Block 2011 TaxesEfile 2011 TaxCan I Amend My Tax ReturnI Need To File My 2012 Tax Return

Turbotax Deluxe Federal E File State 2010 Old Version

Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version Taxpayer Identification NumbersUnexpected payment. Turbotax deluxe federal e file state 2010 old version Depositing Withheld TaxesWhen Deposits Are Required Adjustment for Overwithholding Returns RequiredJoint owners. Turbotax deluxe federal e file state 2010 old version Electronic reporting. Turbotax deluxe federal e file state 2010 old version Partnership Withholding on Effectively Connected IncomeWho Must Withhold Foreign Partner Publicly Traded Partnerships U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version Real Property InterestForeign corporations. Turbotax deluxe federal e file state 2010 old version Domestic corporations. Turbotax deluxe federal e file state 2010 old version U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version real property holding corporations. Turbotax deluxe federal e file state 2010 old version Partnerships. Turbotax deluxe federal e file state 2010 old version Trusts and estates. Turbotax deluxe federal e file state 2010 old version Domestically controlled QIE. Turbotax deluxe federal e file state 2010 old version Late filing of certifications or notices. Turbotax deluxe federal e file state 2010 old version Certifications. Turbotax deluxe federal e file state 2010 old version Liability of agent or qualified substitute. Turbotax deluxe federal e file state 2010 old version Reporting and Paying the Tax Withholding Certificates Tax Treaty TablesTable 1 Table 2 Table 3 How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Turbotax deluxe federal e file state 2010 old version Withholding of Tax In most cases, a foreign person is subject to U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version tax on its U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version source income. Turbotax deluxe federal e file state 2010 old version Most types of U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version source income received by a foreign person are subject to U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version tax of 30%. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version The tax is generally withheld (NRA withholding) from the payment made to the foreign person. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version In most cases, NRA withholding describes the withholding regime that requires withholding on a payment of U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version source income. Turbotax deluxe federal e file state 2010 old version Payments to foreign persons, including nonresident alien individuals, foreign entities, and governments, may be subject to NRA withholding. Turbotax deluxe federal e file state 2010 old version NRA withholding does not include withholding under section 1445 of the Code (see U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version Real Property Interest, later) or under section 1446 of the Code (see Partnership Withholding on Effectively Connected Income , later). Turbotax deluxe federal e file state 2010 old version A withholding agent (defined next) is the person responsible for withholding on payments made to a foreign person. Turbotax deluxe federal e file state 2010 old version However, a withholding agent that can reliably associate the payment with documentation (discussed later) from a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person is not required to withhold. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Withholding Agent You are a withholding agent if you are a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch of certain foreign banks and insurance companies. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Although several persons may be withholding agents for a single payment, the full tax is required to be withheld only once. Turbotax deluxe federal e file state 2010 old version In most cases, the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person who pays an amount subject to NRA withholding is the person responsible for withholding. Turbotax deluxe federal e file state 2010 old version However, other persons may be required to withhold. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Liability for tax. Turbotax deluxe federal e file state 2010 old version   As a withholding agent, you are personally liable for any tax required to be withheld. Turbotax deluxe federal e file state 2010 old version This liability is independent of the tax liability of the foreign person to whom the payment is made. Turbotax deluxe federal e file state 2010 old version If you fail to withhold and the foreign payee fails to satisfy its U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version tax liability, then both you and the foreign person are liable for tax, as well as interest and any applicable penalties. Turbotax deluxe federal e file state 2010 old version   The applicable tax will be collected only once. Turbotax deluxe federal e file state 2010 old version If the foreign person satisfies its U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version tax liability, you are not liable for the tax but remain liable for any interest and penalties for failure to withhold. Turbotax deluxe federal e file state 2010 old version Determination of amount to withhold. Turbotax deluxe federal e file state 2010 old version   You must withhold on the gross amount subject to NRA withholding. Turbotax deluxe federal e file state 2010 old version You cannot reduce the gross amount by any deductions. Turbotax deluxe federal e file state 2010 old version However, see Scholarships and Fellowship Grants and Pay for Personal Services Performed , later, for when a deduction for a personal exemption may be allowed. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version In no case, however, should you withhold more than 30% of the total amount paid. Turbotax deluxe federal e file state 2010 old version Or, you may make a reasonable estimate of the amount from U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version sources and put a corresponding part of the amount due in escrow until the amount from U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version sources can be determined, at which time withholding becomes due. Turbotax deluxe federal e file state 2010 old version When to withhold. Turbotax deluxe federal e file state 2010 old version   Withholding is required at the time you make a payment of an amount subject to withholding. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version A payment is considered made to a person if it is paid for that person's benefit. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version A payment also is considered made to a person if it is made to that person's agent. Turbotax deluxe federal e file state 2010 old version   A U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version partnership should withhold when any distributions that include amounts subject to withholding are made. Turbotax deluxe federal e file state 2010 old version However, if a foreign partner's distributive share of income subject to withholding is not actually distributed, the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version If the distributable amount consists of effectively connected income, see Partnership Withholding on Effectively Connected Income , later. Turbotax deluxe federal e file state 2010 old version A U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version To the extent a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version (See Returns Required , later. Turbotax deluxe federal e file state 2010 old version ) 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. Turbotax deluxe federal e file state 2010 old version Form 1099 reporting and backup withholding. Turbotax deluxe federal e file state 2010 old version    You also may be responsible as a payer for reporting on Form 1099 payments made to a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person. Turbotax deluxe federal e file state 2010 old version You must withhold 28% (backup withholding rate) from a reportable payment made to a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person that is subject to Form 1099 reporting if any of the following apply. Turbotax deluxe federal e file state 2010 old version The U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person has not provided its taxpayer identification number (TIN) in the manner required. Turbotax deluxe federal e file state 2010 old version The IRS notifies you that the TIN furnished by the payee is incorrect. Turbotax deluxe federal e file state 2010 old version There has been a notified payee underreporting. Turbotax deluxe federal e file state 2010 old version There has been a payee certification failure. Turbotax deluxe federal e file state 2010 old version In most cases, a TIN must be provided by a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version non-exempt recipient on Form W-9, Request for Taxpayer Identification Number and Certification. Turbotax deluxe federal e file state 2010 old version A payer files a tax return on Form 945, Annual Return of Withheld Federal Income Tax, for backup withholding. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person. Turbotax deluxe federal e file state 2010 old version For example, you are required to report income paid to a foreign intermediary or flow-through entity that collects for a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person subject to Form 1099 reporting. Turbotax deluxe federal e file state 2010 old version See Identifying the Payee , later, for more information. Turbotax deluxe federal e file state 2010 old version Also see Section S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Wages paid to employees. Turbotax deluxe federal e file state 2010 old version   If you are the employer of a nonresident alien, you generally must withhold taxes at graduated rates. Turbotax deluxe federal e file state 2010 old version See Pay for Personal Services Performed , later. Turbotax deluxe federal e file state 2010 old version Effectively connected income by partnerships. Turbotax deluxe federal e file state 2010 old version   A withholding agent that is a partnership (whether U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version or foreign) is also responsible for withholding on its income effectively connected with a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version trade or business that is allocable to foreign partners. Turbotax deluxe federal e file state 2010 old version See Partnership Withholding on Effectively Connected Income , later, for more information. Turbotax deluxe federal e file state 2010 old version U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version real property interest. Turbotax deluxe federal e file state 2010 old version   A withholding agent also may be responsible for withholding if a foreign person transfers a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version real property interest to the agent, or if it is a corporation, partnership, trust, or estate that distributes a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version real property interest to a shareholder, partner, or beneficiary that is a foreign person. Turbotax deluxe federal e file state 2010 old version See U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version Real Property Interest , later. Turbotax deluxe federal e file state 2010 old version Persons Subject to NRA Withholding NRA withholding applies only to payments made to a payee that is a foreign person. Turbotax deluxe federal e file state 2010 old version It does not apply to payments made to U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version persons. Turbotax deluxe federal e file state 2010 old version Usually, you determine the payee's status as a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version or foreign person based on the documentation that person provides. Turbotax deluxe federal e file state 2010 old version See Documentation , later. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version However, there are situations in which the payee is a person other than the one to whom you actually make a payment. Turbotax deluxe federal e file state 2010 old version U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version agent of foreign person. Turbotax deluxe federal e file state 2010 old version   If you make a payment to a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person and you have actual knowledge that the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person is receiving the payment as an agent of a foreign person, you must treat the payment as made to the foreign person. Turbotax deluxe federal e file state 2010 old version However, if the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person and not as a payment to a foreign person. Turbotax deluxe federal e file state 2010 old version You may be required to report the payment on Form 1099 and, if applicable, backup withhold. Turbotax deluxe federal e file state 2010 old version Disregarded entities. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version The payee of a payment made to a disregarded entity is the owner of the entity. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version   If the owner is a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person, you do not apply NRA withholding. Turbotax deluxe federal e file state 2010 old version However, you may be required to report the payment on Form 1099 and, if applicable, backup withhold. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Flow-Through Entities The payees of payments (other than income effectively connected with a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version trade or business) made to a foreign flow-through entity are the owners or beneficiaries of the flow-through entity. Turbotax deluxe federal e file state 2010 old version This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Turbotax deluxe federal e file state 2010 old version Income that is, or is deemed to be, effectively connected with the conduct of a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version trade or business of a flow-through entity is treated as paid to the entity. Turbotax deluxe federal e file state 2010 old version All of the following are flow-through entities. Turbotax deluxe federal e file state 2010 old version A foreign partnership (other than a withholding foreign partnership). Turbotax deluxe federal e file state 2010 old version A foreign simple or foreign grantor trust (other than a withholding foreign trust). Turbotax deluxe federal e file state 2010 old version A fiscally transparent entity receiving income for which treaty benefits are claimed. Turbotax deluxe federal e file state 2010 old version See Fiscally transparent entity , later. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version You also may be required to treat the entity as a flow-through entity under the presumption rules, discussed later. Turbotax deluxe federal e file state 2010 old version You must determine whether the owners or beneficiaries of a flow-through entity are U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version See Documentation and Presumption Rules , later. Turbotax deluxe federal e file state 2010 old version Withholding foreign partnerships and withholding foreign trusts are not flow-through entities. Turbotax deluxe federal e file state 2010 old version Foreign partnerships. Turbotax deluxe federal e file state 2010 old version    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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Example 1. Turbotax deluxe federal e file state 2010 old version A nonwithholding foreign partnership has three partners: a nonresident alien individual; a foreign corporation; and a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version citizen. Turbotax deluxe federal e file state 2010 old version You make a payment of U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version source interest to the partnership. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version citizen. Turbotax deluxe federal e file state 2010 old version The partnership also gives you a complete withholding statement that enables you to associate a part of the interest payment to each partner. Turbotax deluxe federal e file state 2010 old version You must treat all three partners as the payees of the interest payment as if the payment were made directly to them. Turbotax deluxe federal e file state 2010 old version Report the payment to the nonresident alien and the foreign corporation on Forms 1042-S. Turbotax deluxe federal e file state 2010 old version Report the payment to the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version citizen on Form 1099-INT. Turbotax deluxe federal e file state 2010 old version Example 2. Turbotax deluxe federal e file state 2010 old version A nonwithholding foreign partnership has two partners: a foreign corporation and a nonwithholding foreign partnership. Turbotax deluxe federal e file state 2010 old version The second partnership has two partners, both nonresident alien individuals. Turbotax deluxe federal e file state 2010 old version You make a payment of U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version source interest to the first partnership. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version In addition, Forms W-8BEN from the partners are associated with the Form W-8IMY from the second partnership. Turbotax deluxe federal e file state 2010 old version The Forms W-8IMY from the partnerships have complete withholding statements associated with them. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Example 3. Turbotax deluxe federal e file state 2010 old version You make a payment of U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version source dividends to a withholding foreign partnership. Turbotax deluxe federal e file state 2010 old version The partnership has two partners, both foreign corporations. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version You must treat the partnership as the payee of the dividends. Turbotax deluxe federal e file state 2010 old version Foreign simple and grantor trust. Turbotax deluxe federal e file state 2010 old version   A trust is foreign unless it meets both of the following tests. Turbotax deluxe federal e file state 2010 old version A court within the United States is able to exercise primary supervision over the administration of the trust. Turbotax deluxe federal e file state 2010 old version One or more U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version persons have the authority to control all substantial decisions of the trust. Turbotax deluxe federal e file state 2010 old version   In most cases, a foreign simple trust is a foreign trust that is required to distribute all of its income annually. Turbotax deluxe federal e file state 2010 old version A foreign grantor trust is a foreign trust that is treated as a grantor trust under sections 671 through 679 of the Code. Turbotax deluxe federal e file state 2010 old version   The payees of a payment made to a foreign simple trust are the beneficiaries of the trust. Turbotax deluxe federal e file state 2010 old version The payees of a payment made to a foreign grantor trust are the owners of the trust. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Example. Turbotax deluxe federal e file state 2010 old version A foreign simple trust has three beneficiaries: two nonresident alien individuals and a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version citizen. Turbotax deluxe federal e file state 2010 old version You make a payment of interest to the foreign trust. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version citizen. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version You must treat all three beneficiaries as the payees of the interest payment as if the payment were made directly to them. Turbotax deluxe federal e file state 2010 old version Report the payment to the nonresident aliens on Forms 1042-S. Turbotax deluxe federal e file state 2010 old version Report the payment to the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version citizen on Form 1099-INT. Turbotax deluxe federal e file state 2010 old version Fiscally transparent entity. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version ). Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version   The payees of a payment made to a fiscally transparent entity are the interest holders of the entity. Turbotax deluxe federal e file state 2010 old version Example. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version A has two interest holders, B and C. Turbotax deluxe federal e file state 2010 old version B is a corporation organized under the laws of country Y. Turbotax deluxe federal e file state 2010 old version C is a corporation organized under the laws of country Z. Turbotax deluxe federal e file state 2010 old version Both countries Y and Z have an income tax treaty in force with the United States. Turbotax deluxe federal e file state 2010 old version A receives royalty income from U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version sources that is not effectively connected with the conduct of a trade or business in the United States. Turbotax deluxe federal e file state 2010 old version For U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version income tax purposes, A is treated as a partnership. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Accordingly, A is fiscally transparent in its jurisdiction, country X. Turbotax deluxe federal e file state 2010 old version B and C are not fiscally transparent under the laws of their respective countries of incorporation. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version source royalty income for purposes of the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version -Y income tax treaty. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Therefore, A is not treated as fiscally transparent under the laws of country Z. Turbotax deluxe federal e file state 2010 old version Accordingly, C is not treated as deriving its share of the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version source royalty income for purposes of the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version -Z income tax treaty. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version An intermediary is a custodian, broker, nominee, or any other person that acts as an agent for another person. Turbotax deluxe federal e file state 2010 old version A foreign intermediary is either a qualified intermediary or a nonqualified intermediary. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version You must determine whether the customers or account holders of a foreign intermediary are U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version or foreign persons and, if the account holder or customer is foreign, whether a reduced rate of NRA withholding applies. Turbotax deluxe federal e file state 2010 old version You make these determinations based on the foreign intermediary's Form W-8IMY and associated information and documentation. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version See Documentation and Presumption Rules , later. Turbotax deluxe federal e file state 2010 old version Nonqualified intermediary. Turbotax deluxe federal e file state 2010 old version   A nonqualified intermediary (NQI) is any intermediary that is a foreign person and that is not a qualified intermediary. Turbotax deluxe federal e file state 2010 old version The payees of a payment made to an NQI are the customers or account holders on whose behalf the NQI is acting. Turbotax deluxe federal e file state 2010 old version Example. Turbotax deluxe federal e file state 2010 old version You make a payment of interest to a foreign bank that is a nonqualified intermediary. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person for whom the bank is collecting the payments. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version The account holders are the payees of the interest payment. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person on Form 1099-INT. Turbotax deluxe federal e file state 2010 old version Qualified intermediary. Turbotax deluxe federal e file state 2010 old version   A qualified intermediary (QI) is any foreign intermediary (or foreign branch of a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version intermediary) that has entered into a qualified intermediary withholding agreement (discussed later) with the IRS. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version In this situation, the QI is required to withhold the tax. Turbotax deluxe federal e file state 2010 old version You can determine whether a QI has assumed responsibility from the Form W-8IMY provided by the QI. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person. Turbotax deluxe federal e file state 2010 old version Branches of financial institutions. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version The countries with approved KYC rules are listed on IRS. Turbotax deluxe federal e file state 2010 old version gov. Turbotax deluxe federal e file state 2010 old version QI withholding agreement. Turbotax deluxe federal e file state 2010 old version   Foreign financial institutions and foreign branches of U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version financial institutions can enter into an agreement with the IRS to be a qualified intermediary. Turbotax deluxe federal e file state 2010 old version   A QI is entitled to certain simplified withholding and reporting rules. Turbotax deluxe federal e file state 2010 old version In general, there are three major areas whereby intermediaries with QI status are afforded such simplified treatment. Turbotax deluxe federal e file state 2010 old version   To apply for QI status, complete Form 14345, Qualified Intermediary Application, and Form SS-4, Application for Employer Identification Number. Turbotax deluxe federal e file state 2010 old version These forms, and the procedures required to obtain a QI withholding agreement are available at www. Turbotax deluxe federal e file state 2010 old version irs. Turbotax deluxe federal e file state 2010 old version gov/Businesses/Corporations/Qualified-Intermediaries-(QI). Turbotax deluxe federal e file state 2010 old version Documentation. Turbotax deluxe federal e file state 2010 old version   A QI is not required to forward documentation obtained from foreign account holders to the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version withholding agent from whom the QI receives a payment of U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version source income. Turbotax deluxe federal e file state 2010 old version The QI maintains such documentation at its location and provides the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version withholding agent with withholding rate pools. Turbotax deluxe federal e file state 2010 old version A withholding rate pool is a payment of a single type of income that is subject to a single rate of withholding. Turbotax deluxe federal e file state 2010 old version   A QI is required to provide the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version withholding agent with information regarding U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version persons subject to Form 1099 information reporting unless the QI assumes the primary obligation to do Form 1099 reporting and backup withholding. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Form 1042-S reporting. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version Pooled basis reporting is not available for payments to certain account holders, such as a nonqualified intermediary or a flow-through entity (discussed earlier). Turbotax deluxe federal e file state 2010 old version Collective refund procedures. Turbotax deluxe federal e file state 2010 old version   A QI may seek a refund on behalf of its direct account holders. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branches of foreign banks and foreign insurance companies. Turbotax deluxe federal e file state 2010 old version   Special rules apply to a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch of a foreign bank subject to Federal Reserve Board supervision or a foreign insurance company subject to state regulatory supervision. Turbotax deluxe federal e file state 2010 old version If you agree to treat the branch as a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person, you may treat the branch as a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version payee for a payment subject to NRA withholding provided you receive a Form W-8IMY from the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch on which the agreement is evidenced. Turbotax deluxe federal e file state 2010 old version If you treat the branch as a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version payee, you are not required to withhold. Turbotax deluxe federal e file state 2010 old version Even though you agree to treat the branch as a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person, you must report the payment on Form 1042-S. Turbotax deluxe federal e file state 2010 old version   A financial institution organized in a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version possession is treated as a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch. Turbotax deluxe federal e file state 2010 old version The special rules discussed in this section apply to a possessions financial institution. Turbotax deluxe federal e file state 2010 old version   If you are paying a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person for amounts subject to NRA withholding. Turbotax deluxe federal e file state 2010 old version Consequently, amounts not subject to NRA withholding that are paid to a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch are not subject to Form 1099 reporting or backup withholding. Turbotax deluxe federal e file state 2010 old version   Alternatively, a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch may provide you with a Form W-8IMY with which it associates the documentation of the persons on whose behalf it acts. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version See Nonqualified Intermediaries under  Documentation, later. Turbotax deluxe federal e file state 2010 old version   If the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Withholding foreign partnership and foreign trust. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version A WP or WT acting in that capacity must assume NRA withholding responsibility for these amounts. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version WP and WT withholding agreements. Turbotax deluxe federal e file state 2010 old version   The WP and WT withholding agreements and the application procedures for the agreements are in Revenue Procedure 2003-64. Turbotax deluxe federal e file state 2010 old version Also see the following items. Turbotax deluxe federal e file state 2010 old version Revenue Procedure 2004-21. Turbotax deluxe federal e file state 2010 old version Revenue Procedure 2005-77. Turbotax deluxe federal e file state 2010 old version Employer identification number (EIN). Turbotax deluxe federal e file state 2010 old version   A completed Form SS-4 must be submitted with the application for being a WP or WT. Turbotax deluxe federal e file state 2010 old version The WP or WT will be assigned a WP-EIN or WT-EIN to be used only when acting in that capacity. Turbotax deluxe federal e file state 2010 old version Documentation. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version The Form W-8IMY must contain the WP-EIN or WT-EIN. Turbotax deluxe federal e file state 2010 old version Foreign Persons A payee is subject to NRA withholding only if it is a foreign person. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person. Turbotax deluxe federal e file state 2010 old version It also includes a foreign branch of a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version financial institution if the foreign branch is a qualified intermediary. Turbotax deluxe federal e file state 2010 old version In most cases, the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch of a foreign corporation or partnership is treated as a foreign person. Turbotax deluxe federal e file state 2010 old version Nonresident alien. Turbotax deluxe federal e file state 2010 old version   A nonresident alien is an individual who is not a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version citizen or a resident alien. Turbotax deluxe federal e file state 2010 old version A resident of a foreign country under the residence article of an income tax treaty is a nonresident alien individual for purposes of withholding. Turbotax deluxe federal e file state 2010 old version Married to U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version citizen or resident alien. Turbotax deluxe federal e file state 2010 old version   Nonresident alien individuals married to U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version citizens or resident aliens may choose to be treated as resident aliens for certain income tax purposes. Turbotax deluxe federal e file state 2010 old version However, these individuals are still subject to the NRA withholding rules that apply to nonresident aliens for all income except wages. Turbotax deluxe federal e file state 2010 old version Wages paid to these individuals are subject to graduated withholding. Turbotax deluxe federal e file state 2010 old version See Wages Paid to Employees—Graduated Withholding . Turbotax deluxe federal e file state 2010 old version Resident alien. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version Green card test. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version This is known as the green card test because these aliens hold immigrant visas (also known as green cards). Turbotax deluxe federal e file state 2010 old version Substantial presence test. Turbotax deluxe federal e file state 2010 old version An alien is considered a resident alien if the individual meets the substantial presence test for the calendar year. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version This exception is for a limited period of time. Turbotax deluxe federal e file state 2010 old version   For more information on resident and nonresident status, the tests for residence, and the exceptions to them, see Publication 519. Turbotax deluxe federal e file state 2010 old version Note. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version For more information on making adjustments, see chapter 13 of Publication 15 (Circular E). Turbotax deluxe federal e file state 2010 old version Resident of a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version possession. Turbotax deluxe federal e file state 2010 old version   A bona fide resident of Puerto Rico, the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), or American Samoa who is not a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version citizen or a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version national is treated as a nonresident alien for the withholding rules explained here. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version   For more information, see Publication 570, Tax Guide for Individuals With Income From U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version Possessions. Turbotax deluxe federal e file state 2010 old version Foreign corporations. Turbotax deluxe federal e file state 2010 old version   A foreign corporation is one that does not fit the definition of a domestic corporation. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Guam or Northern Mariana Islands corporations. Turbotax deluxe federal e file state 2010 old version   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). Turbotax deluxe federal e file state 2010 old version Note. Turbotax deluxe federal e file state 2010 old version   The provisions discussed below under U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version Virgin Islands and American Samoa corporations. Turbotax deluxe federal e file state 2010 old version   A corporation created or organized in, or under the laws of, the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version Virgin Islands, American Samoa, Guam, the CNMI, or the United States. Turbotax deluxe federal e file state 2010 old version Foreign private foundations. Turbotax deluxe federal e file state 2010 old version   A private foundation that was created or organized under the laws of a foreign country is a foreign private foundation. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Other foreign organizations, associations, and charitable institutions. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version   Payments to these organizations, however, must be reported on Form 1042-S, even though no tax is withheld. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branches of foreign persons. Turbotax deluxe federal e file state 2010 old version   In most cases, a payment to a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch of a foreign person is a payment made to the foreign person. Turbotax deluxe federal e file state 2010 old version However, you may treat payments to U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branches of foreign banks and foreign insurance companies (discussed earlier) that are subject to U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version regulatory supervision as payments made to a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person, if you and the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch have agreed to do so, and if their agreement is evidenced by a withholding certificate, Form W-8IMY. Turbotax deluxe federal e file state 2010 old version For this purpose, a financial institution organized under the laws of a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version possession is treated as a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version The payee is a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person. Turbotax deluxe federal e file state 2010 old version The payee is a foreign person that is the beneficial owner of the income and is entitled to a reduced rate of withholding. Turbotax deluxe federal e file state 2010 old version In most cases, you must get the documentation before you make the payment. Turbotax deluxe federal e file state 2010 old version The documentation is not valid if you know, or have reason to know, that it is unreliable or incorrect. Turbotax deluxe federal e file state 2010 old version See Standards of Knowledge , later. Turbotax deluxe federal e file state 2010 old version If you cannot reliably associate a payment with valid documentation, you must use the presumption rules discussed later. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version The specific types of documentation are discussed in this section. Turbotax deluxe federal e file state 2010 old version However, see Withholding on Specific Income , later, as well as the instructions to the particular forms. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Section 1446 withholding. Turbotax deluxe federal e file state 2010 old version   Under section 1446 of the Code, a partnership must withhold tax on its effectively connected income allocable to a foreign partner. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Joint owners. Turbotax deluxe federal e file state 2010 old version    If you make a payment to joint owners, you need to get documentation from each owner. Turbotax deluxe federal e file state 2010 old version Form W-9. Turbotax deluxe federal e file state 2010 old version   In most cases, you can treat the payee as a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person if the payee gives you a Form W-9. Turbotax deluxe federal e file state 2010 old version The Form W-9 can be used only by a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person and must contain the payee's taxpayer identification number (TIN). Turbotax deluxe federal e file state 2010 old version If there is more than one owner, you may treat the total amount as paid to a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person if any one of the owners gives you a Form W-9. Turbotax deluxe federal e file state 2010 old version See U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version Taxpayer Identification Numbers , later. Turbotax deluxe federal e file state 2010 old version U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version persons are not subject to NRA withholding, but may be subject to Form 1099 reporting and backup withholding. Turbotax deluxe federal e file state 2010 old version Form W-8. Turbotax deluxe federal e file state 2010 old version   In most cases, a foreign payee of the income should give you a form in the Form W-8 series. Turbotax deluxe federal e file state 2010 old version Until further notice, you can rely upon Forms W-8 that contain a P. Turbotax deluxe federal e file state 2010 old version O. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person and that a street address is available. Turbotax deluxe federal e file state 2010 old version You may rely on Forms W-8 for which there is a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version mailing address provided you received the form prior to December 31, 2001. Turbotax deluxe federal e file state 2010 old version   If certain requirements are met, the foreign person can give you documentary evidence, rather than a Form W-8. Turbotax deluxe federal e file state 2010 old version You can rely on documentary evidence in lieu of a Form W-8 for a payment made in a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version possession. Turbotax deluxe federal e file state 2010 old version Other documentation. Turbotax deluxe federal e file state 2010 old version   Other documentation may be required to claim an exemption from, or a reduced rate of, withholding on pay for personal services. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version These forms are discussed in Pay for Personal Services Performed under Withholding on Specific Income. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Claiming treaty benefits. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version   An entity derives income for which it is claiming treaty benefits only if the entity is not treated as fiscally transparent for that income. Turbotax deluxe federal e file state 2010 old version See Fiscally transparent entity discussed earlier under Flow-Through Entities. Turbotax deluxe federal e file state 2010 old version   Limitations on benefits provisions generally prohibit third country residents from obtaining treaty benefits. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version   The exemptions from, or reduced rates of, U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version tax vary under each treaty. Turbotax deluxe federal e file state 2010 old version You must check the provisions of the tax treaty that apply. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Exceptions to TIN requirement. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version Income from marketable securities (discussed next). Turbotax deluxe federal e file state 2010 old version Unexpected payments to an individual (discussed under U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version Taxpayer Identification Numbers ). Turbotax deluxe federal e file state 2010 old version Marketable securities. Turbotax deluxe federal e file state 2010 old version   A Form W-8BEN provided to claim treaty benefits does not need a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version TIN if the foreign beneficial owner is claiming the benefits on income from marketable securities. Turbotax deluxe federal e file state 2010 old version For this purpose, income from a marketable security consists of the following items. Turbotax deluxe federal e file state 2010 old version Dividends and interest from stocks and debt obligations that are actively traded. Turbotax deluxe federal e file state 2010 old version Dividends from any redeemable security issued by an investment company registered under the Investment Company Act of 1940 (mutual fund). Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Income related to loans of any of the above securities. Turbotax deluxe federal e file state 2010 old version Offshore accounts. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version An offshore account is an account maintained at an office or branch of a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version or foreign bank or other financial institution at any location outside the United States. Turbotax deluxe federal e file state 2010 old version   You may rely on documentary evidence given to you by a nonqualified intermediary or a flow-through entity with its Form W-8IMY. Turbotax deluxe federal e file state 2010 old version This rule applies even though you make the payment to a nonqualified intermediary or flow-through entity in the United States. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Documentary evidence. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version (See Effectively Connected Income , later. Turbotax deluxe federal e file state 2010 old version )   Effectively connected income for which a valid Form W-8ECI has been provided is generally not subject to NRA withholding. Turbotax deluxe federal e file state 2010 old version   If a partner submits this form to a partnership, the income claimed to be effectively connected with the conduct of a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version trade or business is subject to withholding under section 1446. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version    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. Turbotax deluxe federal e file state 2010 old version Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version   See Foreign Governments and Certain Other Foreign Organizations , later. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version The additional information required depends on the type of intermediary or flow-through entity and the extent of the withholding responsibilities it assumes. Turbotax deluxe federal e file state 2010 old version Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version Branches for United States Tax Withholding. Turbotax deluxe federal e file state 2010 old version   This form is used by foreign intermediaries and foreign flow-through entities, as well as certain U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch of a foreign bank or insurance company and either is agreeing to be treated as a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version For information on qualifying as an upper-tier foreign partnership, see Regulations section 1. Turbotax deluxe federal e file state 2010 old version 1446-5. Turbotax deluxe federal e file state 2010 old version Qualified Intermediaries In most cases, a QI is any foreign intermediary that has entered into a QI withholding agreement (discussed earlier) with the IRS. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version The intermediary can claim that it is a QI until the IRS revokes its QI-EIN. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Responsibilities. Turbotax deluxe federal e file state 2010 old version   Payments made to a QI that does not assume NRA withholding responsibility are treated as paid to its account holders and customers. Turbotax deluxe federal e file state 2010 old version However, a QI is not required to provide you with documentation it obtains from its foreign account holders and customers. Turbotax deluxe federal e file state 2010 old version Instead, it provides you with a withholding statement that contains withholding rate pool information. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version A qualified intermediary is required to provide you with information regarding U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version persons subject to Form 1099 reporting and to provide you withholding rate pool information separately for each such U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person unless it has assumed Form 1099 reporting and backup withholding responsibility. Turbotax deluxe federal e file state 2010 old version For the alternative procedure for providing rate pool information for U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version non-exempt persons, see the Form W-8IMY instructions. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version   The extent to which you must have withholding rate pool information depends on the withholding and reporting obligations assumed by the QI. Turbotax deluxe federal e file state 2010 old version Primary responsibility not assumed. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version Unless the alternative procedure applies, the qualified intermediary must provide you with a separate withholding rate pool for each U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person subject to Form 1099 reporting and/or backup withholding. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Primary NRA withholding responsibility assumed. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person, unless the alternative procedure applies, subject to Form 1099 reporting and/or backup withholding. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Primary NRA and Form 1099 responsibility assumed. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version It is not necessary to associate the payment with withholding rate pools. Turbotax deluxe federal e file state 2010 old version Example. Turbotax deluxe federal e file state 2010 old version You make a payment of dividends to a QI. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version individual who provides it with a Form W-9. Turbotax deluxe federal e file state 2010 old version Each customer is entitled to 20% of the dividend payment. Turbotax deluxe federal e file state 2010 old version The QI does not assume any primary withholding responsibility. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version individual. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version The part of the payment allocable to the U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version individual (20%) is reportable on Form 1099-DIV. Turbotax deluxe federal e file state 2010 old version Smaller partnerships and trusts. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version It is a foreign partnership or foreign simple or grantor trust. Turbotax deluxe federal e file state 2010 old version It is a direct account holder of the QI. Turbotax deluxe federal e file state 2010 old version It does not have any partner, beneficiary, or owner that is a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person or a pass- through partner, beneficiary, or owner. Turbotax deluxe federal e file state 2010 old version   For information on these rules, see section 4A. Turbotax deluxe federal e file state 2010 old version 01 of the QI agreement. Turbotax deluxe federal e file state 2010 old version This is found in Appendix 3 of Revenue Procedure 2003-64. Turbotax deluxe federal e file state 2010 old version Also see Revenue Procedure 2004-21. Turbotax deluxe federal e file state 2010 old version Related partnerships and trusts. Turbotax deluxe federal e file state 2010 old version    A QI may apply special rules to a related partnership or trust only if the partnership or trust meets the following conditions. Turbotax deluxe federal e file state 2010 old version It is a foreign partnership or foreign simple or grantor trust. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version For information on these rules, see section 4A. Turbotax deluxe federal e file state 2010 old version 02 of the QI agreement. Turbotax deluxe federal e file state 2010 old version This is found in Appendix 3 of Revenue Procedure 2003-64. Turbotax deluxe federal e file state 2010 old version Also see Revenue Procedure 2005-77. Turbotax deluxe federal e file state 2010 old version Nonqualified Intermediaries If you are making a payment to an NQI, foreign flow-through entity, or U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch), and You have sufficient information to report the payment on Form 1042-S or Form 1099, if reporting is required. Turbotax deluxe federal e file state 2010 old version The NQI, flow-through entity, or U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch must give you certain information on a withholding statement that is associated with the Form W-8IMY. Turbotax deluxe federal e file state 2010 old version A withholding statement must be updated to keep the information accurate prior to each payment. Turbotax deluxe federal e file state 2010 old version Withholding statement. Turbotax deluxe federal e file state 2010 old version   In most cases, a withholding statement must contain the following information. Turbotax deluxe federal e file state 2010 old version The name, address, and TIN (if any, or if required) of each person for whom documentation is provided. Turbotax deluxe federal e file state 2010 old version The type of documentation (documentary evidence, Form W-8, or Form W-9) for every person for whom documentation has been provided. Turbotax deluxe federal e file state 2010 old version The status of the person for whom the documentation has been provided, such as whether the person is a U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version exempt recipient (U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person exempt from Form 1099 reporting), U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version non-exempt recipient (U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version person subject to Form 1099 reporting), or a foreign person. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch. Turbotax deluxe federal e file state 2010 old version The type of recipient the person is, based on the recipient codes used on Form 1042-S. Turbotax deluxe federal e file state 2010 old version Information allocating each payment, by income type, to each payee (including U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version exempt and U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version non-exempt recipients) for whom documentation has been provided. Turbotax deluxe federal e file state 2010 old version The rate of withholding that applies to each foreign person to whom a payment is allocated. Turbotax deluxe federal e file state 2010 old version A foreign payee's country of residence. Turbotax deluxe federal e file state 2010 old version If a reduced rate of withholding is claimed, the basis for a reduced rate of withholding (for example, portfolio interest, treaty benefit, etc. Turbotax deluxe federal e file state 2010 old version ). Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version The name, address, and TIN (if any) of any other NQI, flow-through entity, or U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version branch from which the payee will directly receive a payment. Turbotax deluxe federal e file state 2010 old version Any other information a withholding agent requests to fulfill its reporting and withholding obligations. Turbotax deluxe federal e file state 2010 old version Alternative procedure. Turbotax deluxe federal e file state 2010 old version   Under this alternative procedure the NQI can give you the information that allocates each payment to each foreign and U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version exempt recipient by January 31 following the calendar year of payment, rather than prior to the payment being made as otherwise required. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version You must receive the withholding statement with all the required information (other than item 5) prior to making the payment. Turbotax deluxe federal e file state 2010 old version    This alternative procedure cannot be used for payments to U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version non-exempt recipients. Turbotax deluxe federal e file state 2010 old version Therefore, an NQI must always provide you with allocation information for all U. Turbotax deluxe federal e file state 2010 old version S. Turbotax deluxe federal e file state 2010 old version non-exempt recipients prior to a payment being made. Turbotax deluxe federal e file state 2010 old version Pooled withholding information. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version 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). Turbotax deluxe federal e file state 2010 old version 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. Turbotax deluxe federal e file state 2010 old version Failure to provide allocation information. Turbotax deluxe federal e file state 2010 old version   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. Turbotax deluxe federal e file state 2010 old version You must treat the payees as undocumented and apply the presumption rules, discussed later in Presumption Rules . Turbotax deluxe federal e file state 2010 old version An NQI is deemed to have f
Español

Better Business Bureaus (BBBs) are nonprofit organizations that encourage honest advertising and selling practices and are supported primarily by local businesses. They offer a variety of consumer services, including consumer education materials; business reports, particularly unanswered or unsettled complaints or other problems; mediation and arbitration services; and information about charities and other organizations that are seeking public donations. They also provide ratings (A, B, C, D, or F) of local companies to express the BBB's confidence that the company operates in a trustworthy manner and demonstrates a willingness to resolve customer concerns.

Brandon, MS

Website: Better Business Bureau

Email: info@ms.bbb.org

Address: Better Business Bureau
505 Avalon Way, Suite B
Brandon, MS 39047

Phone Number: 601-398-1700

Toll-free: 1-800-987-8280

The Turbotax Deluxe Federal E File State 2010 Old Version

Turbotax deluxe federal e file state 2010 old version Index Prev  Up     Home   More Online Publications