miatax Posted December 16, 2009 Report Share Posted December 16, 2009 I have a client who has owns majority stock in a U.S. company that he operates. He is a shareholder and a U.S. Resident. The company also has a foreign minority shareholder with no U.S. TIN. If the U.S. Company makes a payment to him, these amounts are accrued and reported on a 5372 but does there need to be backup withholding when the payment is actually made? Does it make a difference with respect to the withholding if payment is for for services (consulting) or a distribution? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted December 16, 2009 Report Share Posted December 16, 2009 http://www.irs.gov/efile/article/0,,id=98145,00.html Should I backup withhold on a payee who is a nonresident alien? Yes. A nonresident alien is subject to backup withholding unless you have a signed Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, or W-8, Certificate of Foreign Status, on file. Nonresident aliens are subject to backup withholding, and identified via Form W-8BEN. Read Pub 1231 for more detail, and to give you what you need to convince your client. Quote Link to comment Share on other sites More sharing options...
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