form 8805? for not withholding Foreign Member Taxes
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form 8805? for not withholding Foreign Member Taxes Our club has a foreign partner and we do not withhold taxes because the partner has provide a w-8ben form. Has any of the club experienced this situation? If yes, please let me know the form you have filled and send to IRS? I filled the form 8805, is this the correct form? Since the foreign partner do not have a SSN, I do not know what to enter in Line 1b. Any help will be appreciated. Thx - Reuben A W-8BEN isn't sufficient to relieve the club of its obligation to withhold taxes. You need to review the tax treaty between the US and the alien's country and apply the appropriate tax rate which will be less than 30%, but not necessarily 0%.
You are required to file Form 8805 for each foreign partner, whether or not taxes were withheld. The IRS will use the country code entered on line 4 to determine if taxes should have been withheld.
Your foreign partner can apply for an ITIN using Form W-7. This will be necessary if it turns out that you should have withheld taxes.
Ira Smilovitz
Join me at InvestEd 2010
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Baltimore, MD August 6 - 8, 2010 http://www.investor-education2010.org/ In a message dated 03/24/10 20:44:53 Eastern Daylight Time, reubendaniel@bivio.com writes:
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