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1040ez 2013 Tax Form

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1040ez 2013 Tax Form

1040ez 2013 tax form Publication 15 - Introductory Material Table of Contents Future Developments What's New Reminders Electronic Filing and Payment Forms in Spanish Hiring New Employees Paying Wages, Pensions, or Annuities Information Returns Nonpayroll Income Tax Withholding Recordkeeping Change of Business Address or Responsible Party Private Delivery Services Telephone Help Ordering Employer Tax Forms and Publications Filing Addresses Dishonored Payments Photographs of Missing Children Calendar Introduction Future Developments For the latest information about developments related to Publication 15 (Circular E), such as legislation enacted after it was published, go to www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/pub15. 1040ez 2013 tax form What's New Social security and Medicare tax for 2014. 1040ez 2013 tax form  The social security tax rate is 6. 1040ez 2013 tax form 2% each for the employee and employer, unchanged from 2013. 1040ez 2013 tax form The social security wage base limit is $117,000. 1040ez 2013 tax form The Medicare tax rate is 1. 1040ez 2013 tax form 45% each for the employee and employer, unchanged from 2013. 1040ez 2013 tax form There is no wage base limit for Medicare tax. 1040ez 2013 tax form Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. 1040ez 2013 tax form Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. 1040ez 2013 tax form 2014 withholdng tables. 1040ez 2013 tax form  This publication includes the 2014 Percentage Method Tables and Wage Bracket Tables for Income Tax Withholding. 1040ez 2013 tax form Withholding allowance. 1040ez 2013 tax form  The 2014 amount for one withholding allowance on an annual basis is $3,950. 1040ez 2013 tax form Voluntary withholding on dividends and other distributions by an Alaska Native Corporation (ANC). 1040ez 2013 tax form  A shareholder of an ANC may now request voluntary income tax withholding on dividends and other distributions paid by an ANC. 1040ez 2013 tax form A shareholder may request voluntary withholding by giving the ANC a completed Form W-4V, Voluntary Withholding Request. 1040ez 2013 tax form For more information see Notice 2013-77, 2013-50 I. 1040ez 2013 tax form R. 1040ez 2013 tax form B. 1040ez 2013 tax form 632, available at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/irb/2013-50_IRB/ar10. 1040ez 2013 tax form html. 1040ez 2013 tax form Change of responsible party. 1040ez 2013 tax form  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party — Business, to report the latest change to its responsible party. 1040ez 2013 tax form Form 8822-B must be filed within 60 days of the change. 1040ez 2013 tax form If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. 1040ez 2013 tax form For a definition of “responsible party,” see the Form 8822-B instructions. 1040ez 2013 tax form Same-sex marriage. 1040ez 2013 tax form  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. 1040ez 2013 tax form For more information, see Revenue Ruling 2013-17, 2013-38 I. 1040ez 2013 tax form R. 1040ez 2013 tax form B. 1040ez 2013 tax form 201, available at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/irb/2013-38_IRB/ar07. 1040ez 2013 tax form html. 1040ez 2013 tax form Notice 2013-61 provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. 1040ez 2013 tax form Notice 2013-61, 2013-44 I. 1040ez 2013 tax form R. 1040ez 2013 tax form B. 1040ez 2013 tax form 432, is available at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/irb/2013-44_IRB/ar10. 1040ez 2013 tax form html. 1040ez 2013 tax form Reminders Additional Medicare Tax withholding. 1040ez 2013 tax form  In addition to withholding Medicare tax at 1. 1040ez 2013 tax form 45%, you must withhold a 0. 1040ez 2013 tax form 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. 1040ez 2013 tax form You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. 1040ez 2013 tax form Additional Medicare Tax is only imposed on the employee. 1040ez 2013 tax form There is no employer share of Additional Medicare Tax. 1040ez 2013 tax form All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. 1040ez 2013 tax form For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments , in section 15. 1040ez 2013 tax form For more information on Additional Medicare Tax, visit IRS. 1040ez 2013 tax form gov and enter “Additional Medicare Tax” in the search box. 1040ez 2013 tax form Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. 1040ez 2013 tax form  The work opportunity tax credit is available for eligible unemployed veterans who began work on or after November 22, 2011, and before January 1, 2014. 1040ez 2013 tax form Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. 1040ez 2013 tax form For more information, visit IRS. 1040ez 2013 tax form gov and enter “work opportunity tax credit” in the search box. 1040ez 2013 tax form Outsourcing payroll duties. 1040ez 2013 tax form  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. 1040ez 2013 tax form The employer remains responsible if the third party fails to perform any required action. 1040ez 2013 tax form If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. 1040ez 2013 tax form gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. 1040ez 2013 tax form COBRA premium assistance credit. 1040ez 2013 tax form  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. 1040ez 2013 tax form See COBRA premium assistance credit under Introduction. 1040ez 2013 tax form Federal tax deposits must be made by electronic funds transfer. 1040ez 2013 tax form  You must use electronic funds transfer to make all federal tax deposits. 1040ez 2013 tax form Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). 1040ez 2013 tax form If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. 1040ez 2013 tax form Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. 1040ez 2013 tax form EFTPS is a free service provided by the Department of Treasury. 1040ez 2013 tax form Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. 1040ez 2013 tax form For more information on making federal tax deposits, see How To Deposit in section 11. 1040ez 2013 tax form To get more information about EFTPS or to enroll in EFTPS, visit www. 1040ez 2013 tax form eftps. 1040ez 2013 tax form gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). 1040ez 2013 tax form Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. 1040ez 2013 tax form You must receive written notice from the IRS to file Form 944. 1040ez 2013 tax form  If you have been filing Forms 941, Employer's QUARTERLY Federal Tax Return (or Forms 941-SS, Employer's QUARTERLY Federal Tax Return—American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U. 1040ez 2013 tax form S. 1040ez 2013 tax form Virgin Islands, or Formularios 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono), and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941, you must contact the IRS to request to file Form 944. 1040ez 2013 tax form You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. 1040ez 2013 tax form For more information on requesting to file Form 944, visit IRS. 1040ez 2013 tax form gov and enter “file employment taxes annually” in the search box. 1040ez 2013 tax form Employers can request to file Forms 941 instead of Form 944. 1040ez 2013 tax form  If you received notice from the IRS and have been filing Form 944 but would like to file Forms 941 instead, you must contact the IRS to request to file Forms 941. 1040ez 2013 tax form You must receive written notice from the IRS to file Forms 941 instead of Form 944 before you may file these forms. 1040ez 2013 tax form For more information on requesting to file Form 944, visit IRS. 1040ez 2013 tax form gov and enter “file employment taxes annually” in the search box. 1040ez 2013 tax form Aggregate Form 941 filers. 1040ez 2013 tax form  Agents must complete Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, when filing an aggregate Form 941. 1040ez 2013 tax form Aggregate Forms 941 may only be filed by agents approved by the IRS under section 3504 of the Internal Revenue Code. 1040ez 2013 tax form To request approval to act as an agent for an employer, the agent files Form 2678, Employer/Payer Appointment of Agent, with the IRS. 1040ez 2013 tax form Aggregate Form 940 filers. 1040ez 2013 tax form  Agents must complete Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers, when filing an aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. 1040ez 2013 tax form Aggregate Forms 940 can be filed by agents acting on behalf of home care service recipients who receive home care services through a program administered by a federal, state, or local government. 1040ez 2013 tax form To request approval to act as an agent on behalf of home care service recipients, the agent files Form 2678 with the IRS. 1040ez 2013 tax form Electronic Filing and Payment  Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. 1040ez 2013 tax form Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier. 1040ez 2013 tax form Spend less time and worry about taxes and more time running your business. 1040ez 2013 tax form Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. 1040ez 2013 tax form For e-file, visit www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/efile for additional information. 1040ez 2013 tax form For EFTPS, visit www. 1040ez 2013 tax form eftps. 1040ez 2013 tax form gov or call EFTPS Customer Service at 1-800-555-4477 or 1-800-733-4829 (TDD). 1040ez 2013 tax form For electronic filing of Forms W-2, Wage and Tax Statement, visit www. 1040ez 2013 tax form socialsecurity. 1040ez 2013 tax form gov/employer. 1040ez 2013 tax form If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. 1040ez 2013 tax form If a valid EIN is not provided, the return or payment will not be processed. 1040ez 2013 tax form This may result in penalties and delays in processing your return or payment. 1040ez 2013 tax form Electronic funds withdrawal (EFW). 1040ez 2013 tax form  If you file Form 940, Form 941, Form 944, or Form 945 electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single step using tax preparation software or through a tax professional. 1040ez 2013 tax form However, do not use EFW to make federal tax deposits. 1040ez 2013 tax form For more information on paying your taxes using EFW, visit the IRS website at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/e-pay. 1040ez 2013 tax form A fee may be charged to file electronically. 1040ez 2013 tax form Credit or debit card payments. 1040ez 2013 tax form  For information on paying your taxes with a credit or debit card, visit the IRS website at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/e-pay. 1040ez 2013 tax form However, do not use credit or debit cards to make federal tax deposits. 1040ez 2013 tax form Forms in Spanish You can provide Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, in place of Form W-4, Employee's Withholding Allowance Certificate, to your Spanish-speaking employees. 1040ez 2013 tax form For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). 1040ez 2013 tax form For nonemployees, Formulario W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification. 1040ez 2013 tax form Hiring New Employees Eligibility for employment. 1040ez 2013 tax form  You must verify that each new employee is legally eligible to work in the United States. 1040ez 2013 tax form This includes completing the U. 1040ez 2013 tax form S. 1040ez 2013 tax form Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. 1040ez 2013 tax form You can get the form from USCIS offices or by calling 1-800-870-3676. 1040ez 2013 tax form Contact the USCIS at 1-800-375-5283, or visit the USCIS website at www. 1040ez 2013 tax form uscis. 1040ez 2013 tax form gov for more information. 1040ez 2013 tax form New hire reporting. 1040ez 2013 tax form  You are required to report any new employee to a designated state new hire registry. 1040ez 2013 tax form A new employee is an employee who has not previously been employed by you or was previously employed by you but has been separated from such prior employment for at least 60 consecutive days. 1040ez 2013 tax form Many states accept a copy of Form W-4 with employer information added. 1040ez 2013 tax form Visit the Office of Child Support Enforcement website at www. 1040ez 2013 tax form acf. 1040ez 2013 tax form hhs. 1040ez 2013 tax form gov/programs/cse/newhire for more information. 1040ez 2013 tax form W-4 request. 1040ez 2013 tax form  Ask each new employee to complete the 2014 Form W-4. 1040ez 2013 tax form See section 9. 1040ez 2013 tax form Name and social security number. 1040ez 2013 tax form  Record each new employee's name and number from his or her social security card. 1040ez 2013 tax form Any employee without a social security card should apply for one. 1040ez 2013 tax form See section 4. 1040ez 2013 tax form Paying Wages, Pensions, or Annuities Correcting Form 941 or Form 944. 1040ez 2013 tax form  If you discover an error on a previously filed Form 941 or Form 944, make the correction using Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund, or Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund. 1040ez 2013 tax form Forms 941-X and 944-X are stand-alone forms, meaning taxpayers can file them when an error is discovered. 1040ez 2013 tax form Forms 941-X and 944-X are used by employers to claim refunds or abatements of employment taxes, rather than Form 843, Claim for Refund and Request for Abatement. 1040ez 2013 tax form See section 13 for more information. 1040ez 2013 tax form Income tax withholding. 1040ez 2013 tax form  Withhold federal income tax from each wage payment or supplemental unemployment compensation plan benefit payment according to the employee's Form W-4 and the correct withholding table. 1040ez 2013 tax form If you have nonresident alien employees, see Withholding income taxes on the wages of nonresident alien employees in section 9. 1040ez 2013 tax form Withhold from periodic pension and annuity payments as if the recipient is married claiming three withholding allowances, unless he or she has provided Form W-4P, Withholding Certificate for Pension or Annuity Payments, either electing no withholding or giving a different number of allowances, marital status, or an additional amount to be withheld. 1040ez 2013 tax form Do not withhold on direct rollovers from qualified plans or governmental section 457(b) plans. 1040ez 2013 tax form See section 9 and Publication 15-A, Employer's Supplemental Tax Guide. 1040ez 2013 tax form Publication 15-A includes information about withholding on pensions and annuities. 1040ez 2013 tax form Zero wage return. 1040ez 2013 tax form  If you have not filed a “final” Form 941 or Form 944, or are not a “seasonal” employer, you must continue to file a Form 941 or Form 944 even for periods during which you paid no wages. 1040ez 2013 tax form The IRS encourages you to file your “Zero Wage” Forms 941 or 944 electronically using IRS e-file at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/efile. 1040ez 2013 tax form Employer Responsibilities Employer Responsibilities: The following list provides a brief summary of your basic responsibilities. 1040ez 2013 tax form Because the individual circumstances for each employer can vary greatly, responsibilities for withholding, depositing, and reporting employment taxes can differ. 1040ez 2013 tax form Each item in this list has a page reference to a more detailed discussion in this publication. 1040ez 2013 tax form   New Employees: Page     Annually (By January 31 of the current year, Page □ Verify work eligibility of new employees 3     for the prior year):   □ Record employees' names and SSNs from     □ File Form 944 if required (pay tax with return if     social security cards 4     not required to deposit) 29 □ Ask employees for Form W-4 3     Annually (see Calendar for due dates):     Each Payday:     □ Remind employees to submit a new Form W-4   □ Withhold federal income tax based on each       if they need to change their withholding 20   employee's Form W-4 20   □ Ask for a new Form W-4 from employees   □ Withhold employee's share of social security       claiming exemption from income tax     and Medicare taxes 23     withholding 20 □ Deposit:     □ Reconcile Forms 941 (or Form 944) with Forms     • Withheld income tax       W-2 and W-3 31   • Withheld and employer social security taxes     □ Furnish each employee a Form W-2 7   • Withheld and employer Medicare taxes 24   □ File Copy A of Forms W-2 and the transmittal     Note:Due date of deposit generally depends       Form W-3 with the SSA 8   on your deposit schedule (monthly or semiweekly)     □ Furnish each other payee a Form 1099 (for example, Form 1099-MISC, Miscellaneous Income) 7   Quarterly (By April 30, July 31, October 31, and January 31):     □ File Forms 1099 and the transmittal Form   □ Deposit FUTA tax if undeposited amount       1096 8   is over $500 35   □ File Form 940 7 □ File Form 941 (pay tax with return if not     □ File Form 945 for any nonpayroll income tax     required to deposit) 29     withholding 8 Information Returns You may be required to file information returns to report certain types of payments made during the year. 1040ez 2013 tax form For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business. 1040ez 2013 tax form For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information and the separate, specific instructions for each information return you file (for example, Instructions for Form 1099-MISC). 1040ez 2013 tax form Generally, do not use Forms 1099 to report wages and other compensation you paid to employees; report these on Form W-2. 1040ez 2013 tax form See the General Instructions for Forms W-2 and W-3 for details about filing Form W-2 and for information about required electronic filing. 1040ez 2013 tax form If you file 250 or more Forms 1099, you must file them electronically. 1040ez 2013 tax form If you file 250 or more Forms W-2, you must file them electronically. 1040ez 2013 tax form SSA will not accept Forms W-2 and W-3 filed on magnetic media. 1040ez 2013 tax form Information reporting customer service site. 1040ez 2013 tax form  The IRS operates the Enterprise Computing Center—Martinsburg, a centralized customer service site, to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. 1040ez 2013 tax form If you have questions related to reporting on information returns, call 1-866-455-7438 (toll free), 304-263-8700 (toll call), or 304-267-3367 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). 1040ez 2013 tax form The center can also be reached by email at mccirp@irs. 1040ez 2013 tax form gov. 1040ez 2013 tax form Do not include tax identification numbers (TINs) or attachments in email correspondence because electronic mail is not secure. 1040ez 2013 tax form Nonpayroll Income Tax Withholding Nonpayroll federal income tax withholding (reported on Forms 1099 and Form W-2G) must be reported on Form 945, Annual Return of Withheld Federal Income Tax. 1040ez 2013 tax form Separate deposits are required for payroll (Form 941 or Form 944) and nonpayroll (Form 945) withholding. 1040ez 2013 tax form Nonpayroll items include: Pensions (including distributions from tax-favored retirement plans, for example, section 401(k), section 403(b), and governmental section 457(b) plans) and annuities. 1040ez 2013 tax form Military retirement. 1040ez 2013 tax form Gambling winnings. 1040ez 2013 tax form Indian gaming profits. 1040ez 2013 tax form Certain government payments, such as unemployment compensation, social security, and Tier 1 railroad retirement benefits, subject to voluntary withholding. 1040ez 2013 tax form Payments subject to backup withholding. 1040ez 2013 tax form For details on depositing and reporting nonpayroll income tax withholding, see the Instructions for Form 945. 1040ez 2013 tax form All income tax withholding reported on Form W-2 must be reported on Form 941, Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, Form 944, or Schedule H (Form 1040), Household Employment Taxes. 1040ez 2013 tax form Distributions from nonqualified pension plans and deferred compensation plans. 1040ez 2013 tax form  Because distributions to participants from some nonqualified pension plans and deferred compensation plans (including section 457(b) plans of tax-exempt organizations) are treated as wages and are reported on Form W-2, income tax withheld must be reported on Form 941 or Form 944, not on Form 945. 1040ez 2013 tax form However, distributions from such plans to a beneficiary or estate of a deceased employee are not wages and are reported on Forms 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 1040ez 2013 tax form ; income tax withheld must be reported on Form 945. 1040ez 2013 tax form Backup withholding. 1040ez 2013 tax form  You generally must withhold 28% of certain taxable payments if the payee fails to furnish you with his or her correct taxpayer identification number (TIN). 1040ez 2013 tax form This withholding is referred to as “backup withholding. 1040ez 2013 tax form ” Payments subject to backup withholding include interest, dividends, patronage dividends, rents, royalties, commissions, nonemployee compensation, and certain other payments you make in the course of your trade or business. 1040ez 2013 tax form In addition, transactions by brokers and barter exchanges and certain payments made by fishing boat operators are subject to backup withholding. 1040ez 2013 tax form Backup withholding does not apply to wages, pensions, annuities, IRAs (including simplified employee pension (SEP) and SIMPLE retirement plans), section 404(k) distributions from an employee stock ownership plan (ESOP), medical savings accounts, health savings accounts, long-term-care benefits, or real estate transactions. 1040ez 2013 tax form You can use Form W-9 or Formulario W-9(SP) to request payees to furnish a TIN and to certify the number furnished is correct. 1040ez 2013 tax form You can also use Form W-9 or Formulario W-9(SP) to get certifications from payees that they are not subject to backup withholding or that they are exempt from backup withholding. 1040ez 2013 tax form The Instructions for the Requester of Form W-9 or Formulario W-9(SP) includes a list of types of payees who are exempt from backup withholding. 1040ez 2013 tax form For more information, see Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s). 1040ez 2013 tax form Recordkeeping Keep all records of employment taxes for at least 4 years. 1040ez 2013 tax form These should be available for IRS review. 1040ez 2013 tax form Your records should include the following information. 1040ez 2013 tax form Your EIN. 1040ez 2013 tax form Amounts and dates of all wage, annuity, and pension payments. 1040ez 2013 tax form Amounts of tips reported to you by your employees. 1040ez 2013 tax form Records of allocated tips. 1040ez 2013 tax form The fair market value of in-kind wages paid. 1040ez 2013 tax form Names, addresses, social security numbers, and occupations of employees and recipients. 1040ez 2013 tax form Any employee copies of Forms W-2 and W-2c returned to you as undeliverable. 1040ez 2013 tax form Dates of employment for each employee. 1040ez 2013 tax form Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third party payors made to them. 1040ez 2013 tax form Copies of employees' and recipients' income tax withholding allowance certificates (Forms W-4, W-4P, W-4(SP), W-4S, and W-4V). 1040ez 2013 tax form Copies of employees' Earned Income Credit Advance Payment Certificates (Forms W-5 and W-5(SP)). 1040ez 2013 tax form Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS. 1040ez 2013 tax form Copies of returns filed and confirmation numbers. 1040ez 2013 tax form Records of fringe benefits and expense reimbursements provided to your employees, including substantiation. 1040ez 2013 tax form Change of Business Address or Responsible Party To notify the IRS of a change in business address or responsible party, file Form 8822-B. 1040ez 2013 tax form Do not mail Form 8822-B with your employment tax return. 1040ez 2013 tax form Private Delivery Services You can use certain private delivery services designated by the IRS to mail tax returns and payments. 1040ez 2013 tax form The list includes only the following: DHL Express (DHL): DHL Same Day Service. 1040ez 2013 tax form Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. 1040ez 2013 tax form United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. 1040ez 2013 tax form M. 1040ez 2013 tax form , UPS Worldwide Express Plus, and UPS Worldwide Express. 1040ez 2013 tax form For the IRS mailing address to use if you are using a private delivery service, go to IRS. 1040ez 2013 tax form gov and enter “private delivery service” in the search box. 1040ez 2013 tax form Your private delivery service can tell you how to get written proof of the mailing date. 1040ez 2013 tax form   Private delivery services cannot deliver items to P. 1040ez 2013 tax form O. 1040ez 2013 tax form boxes. 1040ez 2013 tax form You must use the U. 1040ez 2013 tax form S. 1040ez 2013 tax form Postal Service to mail any item to an IRS P. 1040ez 2013 tax form O. 1040ez 2013 tax form box address. 1040ez 2013 tax form Telephone Help Tax questions. 1040ez 2013 tax form   You can call the IRS Business and Specialty Tax Line with your employment tax questions at 1-800-829-4933. 1040ez 2013 tax form Help for people with disabilities. 1040ez 2013 tax form  You may call 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) with any tax question or to order forms and publications. 1040ez 2013 tax form You may also use this number for assistance with unresolved tax problems. 1040ez 2013 tax form Recorded tax information (TeleTax). 1040ez 2013 tax form  The IRS TeleTax service provides recorded tax information on topics that answer many individual and business federal tax questions. 1040ez 2013 tax form You can listen to up to three topics on each call you make. 1040ez 2013 tax form Touch-Tone service is available 24 hours a day, 7 days a week. 1040ez 2013 tax form TeleTax topics are also available on the IRS website at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/taxtopics. 1040ez 2013 tax form Most tax topics listed below are also available in Spanish. 1040ez 2013 tax form For a complete list of TeleTax topics in Spanish, visit the IRS website at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/Spanish/Índice-de-Temas-Tributarios-Año-2013. 1040ez 2013 tax form A list of employment tax topics is provided next. 1040ez 2013 tax form Select, by number, the topic you want to hear and call 1-800-829-4477. 1040ez 2013 tax form For the directory of all topics, select Topic 123. 1040ez 2013 tax form Teletax Topics Topic No. 1040ez 2013 tax form Subject 751 Social Security and Medicare Withholding Rates 752 Form W-2—Where, When, and How to File 753 Form W-4—Employee's Withholding Allowance Certificate 755 Employer Identification Number (EIN)—How to Apply 756 Employment Taxes for Household Employees 757 Form 941 and Form 944—Deposit Requirements 758 Form 941—Employer's QUARTERLY Federal Tax Return and Form 944—Employer's ANNUAL Federal Tax Return 759 Form 940—Employer's Annual Federal Unemployment (FUTA) Tax Return—Filing and Deposit Requirements 760 Reporting and Deposit Requirements for Agricultural Employers 761 Tips—Withholding and Reporting 762 Independent Contractor vs. 1040ez 2013 tax form Employee 763 The “Affordable Care Act” of 2010 Offers Employers New Tax Deductions and Credits Additional employment tax information. 1040ez 2013 tax form  Visit the IRS website at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/businesses and click on the Employment Taxes link under Businesses Topics. 1040ez 2013 tax form Ordering Employer Tax Forms and Publications You can order employer tax forms and publications and information returns online at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/businesses. 1040ez 2013 tax form To order 2013 and 2014 forms, click on the Online Ordering for Information Returns and Employer Returns link. 1040ez 2013 tax form You may also order employer tax forms and publications and information returns by calling 1-800-TAX-FORM (1-800-829-3676). 1040ez 2013 tax form Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the Social Security Administration's (SSA) free e-file service. 1040ez 2013 tax form Visit the SSA's Employer W-2 Filing Instructions & Information website at www. 1040ez 2013 tax form socialsecurity. 1040ez 2013 tax form gov/employer to register for Business Services Online. 1040ez 2013 tax form You will be able to create Forms W-2 online and submit them to the SSA by typing your wage information into easy-to-use fill-in fields. 1040ez 2013 tax form In addition, you can print out completed copies of Forms W-2 to file with state or local governments, distribute to your employees, and keep for your records. 1040ez 2013 tax form Form W-3 will be created for you based on your Forms W-2. 1040ez 2013 tax form Filing Addresses Generally, your filing address for Forms 940, 941, 943, 944, 945, and CT-1 depends on the location of your residence or principal place of business and whether or not you are including a payment with your return. 1040ez 2013 tax form There are separate filing addresses for these returns if you are a tax-exempt organization or government entity. 1040ez 2013 tax form See the separate instructions for Forms 940, 941, 943, 944, 945, or CT-1 for the filing addresses. 1040ez 2013 tax form Dishonored Payments Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. 1040ez 2013 tax form The penalty is $25 or 2% of the payment, whichever is more. 1040ez 2013 tax form However, the penalty on dishonored payments of $24. 1040ez 2013 tax form 99 or less is an amount equal to the payment. 1040ez 2013 tax form For example, a dishonored payment of $18 is charged a penalty of $18. 1040ez 2013 tax form Photographs of Missing Children The IRS is a proud partner with the National Center for Missing and Exploited Children. 1040ez 2013 tax form Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 1040ez 2013 tax form You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 1040ez 2013 tax form Calendar The following is a list of important dates. 1040ez 2013 tax form Also see Publication 509, Tax Calendars. 1040ez 2013 tax form   If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, use the next business day. 1040ez 2013 tax form A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. 1040ez 2013 tax form However, a statewide legal holiday does not delay the due date of federal tax deposits. 1040ez 2013 tax form See Deposits on Business Days Only in section 11. 1040ez 2013 tax form For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. 1040ez 2013 tax form S. 1040ez 2013 tax form Postal Service on or before the due date, or sent by an IRS-designated private delivery service on or before the due date. 1040ez 2013 tax form See Private Delivery Services under Reminders for more information. 1040ez 2013 tax form Introduction This publication explains your tax responsibilities as an employer. 1040ez 2013 tax form It explains the requirements for withholding, depositing, reporting, paying, and correcting employment taxes. 1040ez 2013 tax form It explains the forms you must give to your employees, those your employees must give to you, and those you must send to the IRS and SSA. 1040ez 2013 tax form This guide also has tax tables you need to figure the taxes to withhold from each employee for 2014. 1040ez 2013 tax form References to “income tax” in this guide apply only to “federal” income tax. 1040ez 2013 tax form Contact your state or local tax department to determine if their rules are different. 1040ez 2013 tax form Additional employment tax information is available in Publication 15-A. 1040ez 2013 tax form Publication 15-A includes specialized information supplementing the basic employment tax information provided in this publication. 1040ez 2013 tax form Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment and valuation of various types of noncash compensation. 1040ez 2013 tax form Most employers must withhold (except FUTA), deposit, report, and pay the following employment taxes. 1040ez 2013 tax form Income tax. 1040ez 2013 tax form Social security tax. 1040ez 2013 tax form Medicare tax. 1040ez 2013 tax form FUTA tax. 1040ez 2013 tax form There are exceptions to these requirements. 1040ez 2013 tax form See section 15 for guidance. 1040ez 2013 tax form Railroad retirement taxes are explained in the Instructions for Form CT-1. 1040ez 2013 tax form Comments and suggestions. 1040ez 2013 tax form   We welcome your comments about this publication and your suggestions for future editions. 1040ez 2013 tax form   You can write to us at the following address: Internal Revenue Service Tax Forms & Publications Division 1111 Constitution Ave. 1040ez 2013 tax form NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 1040ez 2013 tax form Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040ez 2013 tax form   You can also send us comments from www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/formspubs. 1040ez 2013 tax form Click on More Information and then click on Comment on Tax Forms and Publications. 1040ez 2013 tax form   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. 1040ez 2013 tax form Federal Government employers. 1040ez 2013 tax form   The information in this publication, including the rules for making federal tax deposits, applies to federal agencies. 1040ez 2013 tax form State and local government employers. 1040ez 2013 tax form   Payments to employees for services in the employ of state and local government employers are generally subject to federal income tax withholding but not FUTA tax. 1040ez 2013 tax form Most elected and appointed public officials of state or local governments are employees under common law rules. 1040ez 2013 tax form See chapter 3 of Publication 963, Federal-State Reference Guide. 1040ez 2013 tax form In addition, wages, with certain exceptions, are subject to social security and Medicare taxes. 1040ez 2013 tax form See section 15 for more information on the exceptions. 1040ez 2013 tax form   If an election worker is employed in another capacity with the same government entity, see Revenue Ruling 2000-6 on page 512 of Internal Revenue Bulletin 2000-6 at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/pub/irs-irbs/irb00-06. 1040ez 2013 tax form pdf. 1040ez 2013 tax form   You can get information on reporting and social security coverage from your local IRS office. 1040ez 2013 tax form If you have any questions about coverage under a section 218 (Social Security Act) agreement, contact the appropriate state official. 1040ez 2013 tax form To find your State Social Security Administrator, visit the National Conference of State Social Security Administrators website at www. 1040ez 2013 tax form ncsssa. 1040ez 2013 tax form org. 1040ez 2013 tax form Disregarded entities and qualified subchapter S subsidiaries (QSubs). 1040ez 2013 tax form   Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. 1040ez 2013 tax form Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. 1040ez 2013 tax form See Regulations sections 1. 1040ez 2013 tax form 1361-4(a)(7) and 301. 1040ez 2013 tax form 7701-2(c)(2)(iv). 1040ez 2013 tax form COBRA premium assistance credit. 1040ez 2013 tax form   The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. 1040ez 2013 tax form COBRA generally covers multiemployer health plans and health plans maintained by private-sector employers (other than churches) with 20 or more full and part-time employees. 1040ez 2013 tax form Parallel requirements apply to these plans under the Employee Retirement Income Security Act of 1974 (ERISA). 1040ez 2013 tax form Under the Public Health Service Act, COBRA requirements apply also to health plans covering state or local government employees. 1040ez 2013 tax form Similar requirements apply under the Federal Employees Health Benefits Program and under some state laws. 1040ez 2013 tax form For the premium assistance (or subsidy) discussed below, these requirements are all referred to as COBRA requirements. 1040ez 2013 tax form   Under the American Recovery and Reinvestment Act of 2009 (ARRA), employers are allowed a credit against “payroll taxes” (referred to in this publication as “employment taxes”) for providing COBRA premium assistance to assistance eligible individuals. 1040ez 2013 tax form For periods of COBRA continuation coverage beginning after February 16, 2009, a group health plan must treat an assistance eligible individual as having paid the required COBRA continuation coverage premium if the individual elects COBRA coverage and pays 35% of the amount of the premium. 1040ez 2013 tax form   An assistance eligible individual is a qualified beneficiary of an employer's group health plan who is eligible for COBRA continuation coverage during the period beginning September 1, 2008, and ending May 31, 2010, due to the involuntarily termination from employment of a covered employee during the period and elects continuation COBRA coverage. 1040ez 2013 tax form The assistance for the coverage can last up to 15 months. 1040ez 2013 tax form   Employees terminated during the period beginning September 1, 2008, and ending May 31, 2010, who received a severance package that delayed the start of the COBRA continuation coverage, may still be eligible for premium assistance for COBRA continuation coverage. 1040ez 2013 tax form For more information see Notice 2009-27, 2009-16 I. 1040ez 2013 tax form R. 1040ez 2013 tax form B. 1040ez 2013 tax form 838, available at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/irb/2009-16_irb/ar09. 1040ez 2013 tax form html. 1040ez 2013 tax form   Administrators of the group health plans (or other entities) that provide or administer COBRA continuation coverage must provide notice to assistance eligible individuals of the COBRA premium assistance. 1040ez 2013 tax form   The 65% of the premium not paid by the assistance eligible individuals is reimbursed to the employer maintaining the group health plan. 1040ez 2013 tax form The reimbursement is made through a credit against the employer's employment tax liabilities. 1040ez 2013 tax form For information on how to claim the credit, see the Instructions for Form 941 or the Instructions for Form 944. 1040ez 2013 tax form The credit is treated as a deposit made on the first day of the return period (quarter or year). 1040ez 2013 tax form In the case of a multiemployer plan, the credit is claimed by the plan, rather than the employer. 1040ez 2013 tax form In the case of an insured plan subject to state law continuation coverage requirements, the credit is claimed by the insurance company, rather than the employer. 1040ez 2013 tax form   Anyone claiming the credit for COBRA premium assistance payments must maintain the following information to support their claim, including the following. 1040ez 2013 tax form Information on the receipt of the assistance eligible individuals' 35% share of the premium, including dates and amounts. 1040ez 2013 tax form In the case of an insurance plan, a copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA. 1040ez 2013 tax form In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance eligible individuals. 1040ez 2013 tax form Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy. 1040ez 2013 tax form Proof of each assistance eligible individual's eligibility for COBRA coverage and the election of COBRA coverage. 1040ez 2013 tax form A record of the SSNs of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals. 1040ez 2013 tax form   For more information, visit IRS. 1040ez 2013 tax form gov and enter “COBRA” in the search box. 1040ez 2013 tax form Prev  Up  Next   Home   More Online Publications
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Page Last Reviewed or Updated: 22-Apr-2013

The 1040ez 2013 Tax Form

1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form Taxpayer Identification NumbersUnexpected payment. 1040ez 2013 tax form Depositing Withheld TaxesWhen Deposits Are Required Adjustment for Overwithholding Returns RequiredJoint owners. 1040ez 2013 tax form Electronic reporting. 1040ez 2013 tax form Partnership Withholding on Effectively Connected IncomeWho Must Withhold Foreign Partner Publicly Traded Partnerships U. 1040ez 2013 tax form S. 1040ez 2013 tax form Real Property InterestForeign corporations. 1040ez 2013 tax form Domestic corporations. 1040ez 2013 tax form U. 1040ez 2013 tax form S. 1040ez 2013 tax form real property holding corporations. 1040ez 2013 tax form Partnerships. 1040ez 2013 tax form Trusts and estates. 1040ez 2013 tax form Domestically controlled QIE. 1040ez 2013 tax form Late filing of certifications or notices. 1040ez 2013 tax form Certifications. 1040ez 2013 tax form Liability of agent or qualified substitute. 1040ez 2013 tax form Reporting and Paying the Tax Withholding Certificates Tax Treaty TablesTable 1 Table 2 Table 3 How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 1040ez 2013 tax form Withholding of Tax In most cases, a foreign person is subject to U. 1040ez 2013 tax form S. 1040ez 2013 tax form tax on its U. 1040ez 2013 tax form S. 1040ez 2013 tax form source income. 1040ez 2013 tax form Most types of U. 1040ez 2013 tax form S. 1040ez 2013 tax form source income received by a foreign person are subject to U. 1040ez 2013 tax form S. 1040ez 2013 tax form tax of 30%. 1040ez 2013 tax form 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. 1040ez 2013 tax form The tax is generally withheld (NRA withholding) from the payment made to the foreign person. 1040ez 2013 tax form 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. 1040ez 2013 tax form In most cases, NRA withholding describes the withholding regime that requires withholding on a payment of U. 1040ez 2013 tax form S. 1040ez 2013 tax form source income. 1040ez 2013 tax form Payments to foreign persons, including nonresident alien individuals, foreign entities, and governments, may be subject to NRA withholding. 1040ez 2013 tax form NRA withholding does not include withholding under section 1445 of the Code (see U. 1040ez 2013 tax form S. 1040ez 2013 tax form Real Property Interest, later) or under section 1446 of the Code (see Partnership Withholding on Effectively Connected Income , later). 1040ez 2013 tax form A withholding agent (defined next) is the person responsible for withholding on payments made to a foreign person. 1040ez 2013 tax form However, a withholding agent that can reliably associate the payment with documentation (discussed later) from a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person is not required to withhold. 1040ez 2013 tax form 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. 1040ez 2013 tax form Withholding Agent You are a withholding agent if you are a U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form branch of certain foreign banks and insurance companies. 1040ez 2013 tax form 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. 1040ez 2013 tax form Although several persons may be withholding agents for a single payment, the full tax is required to be withheld only once. 1040ez 2013 tax form In most cases, the U. 1040ez 2013 tax form S. 1040ez 2013 tax form person who pays an amount subject to NRA withholding is the person responsible for withholding. 1040ez 2013 tax form However, other persons may be required to withhold. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form Liability for tax. 1040ez 2013 tax form   As a withholding agent, you are personally liable for any tax required to be withheld. 1040ez 2013 tax form This liability is independent of the tax liability of the foreign person to whom the payment is made. 1040ez 2013 tax form If you fail to withhold and the foreign payee fails to satisfy its U. 1040ez 2013 tax form S. 1040ez 2013 tax form tax liability, then both you and the foreign person are liable for tax, as well as interest and any applicable penalties. 1040ez 2013 tax form   The applicable tax will be collected only once. 1040ez 2013 tax form If the foreign person satisfies its U. 1040ez 2013 tax form S. 1040ez 2013 tax form tax liability, you are not liable for the tax but remain liable for any interest and penalties for failure to withhold. 1040ez 2013 tax form Determination of amount to withhold. 1040ez 2013 tax form   You must withhold on the gross amount subject to NRA withholding. 1040ez 2013 tax form You cannot reduce the gross amount by any deductions. 1040ez 2013 tax form However, see Scholarships and Fellowship Grants and Pay for Personal Services Performed , later, for when a deduction for a personal exemption may be allowed. 1040ez 2013 tax form   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. 1040ez 2013 tax form In no case, however, should you withhold more than 30% of the total amount paid. 1040ez 2013 tax form Or, you may make a reasonable estimate of the amount from U. 1040ez 2013 tax form S. 1040ez 2013 tax form sources and put a corresponding part of the amount due in escrow until the amount from U. 1040ez 2013 tax form S. 1040ez 2013 tax form sources can be determined, at which time withholding becomes due. 1040ez 2013 tax form When to withhold. 1040ez 2013 tax form   Withholding is required at the time you make a payment of an amount subject to withholding. 1040ez 2013 tax form 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. 1040ez 2013 tax form A payment is considered made to a person if it is paid for that person's benefit. 1040ez 2013 tax form 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. 1040ez 2013 tax form A payment also is considered made to a person if it is made to that person's agent. 1040ez 2013 tax form   A U. 1040ez 2013 tax form S. 1040ez 2013 tax form partnership should withhold when any distributions that include amounts subject to withholding are made. 1040ez 2013 tax form However, if a foreign partner's distributive share of income subject to withholding is not actually distributed, the U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form If the distributable amount consists of effectively connected income, see Partnership Withholding on Effectively Connected Income , later. 1040ez 2013 tax form A U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form To the extent a U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form (See Returns Required , later. 1040ez 2013 tax form ) 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. 1040ez 2013 tax form Form 1099 reporting and backup withholding. 1040ez 2013 tax form    You also may be responsible as a payer for reporting on Form 1099 payments made to a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person. 1040ez 2013 tax form You must withhold 28% (backup withholding rate) from a reportable payment made to a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person that is subject to Form 1099 reporting if any of the following apply. 1040ez 2013 tax form The U. 1040ez 2013 tax form S. 1040ez 2013 tax form person has not provided its taxpayer identification number (TIN) in the manner required. 1040ez 2013 tax form The IRS notifies you that the TIN furnished by the payee is incorrect. 1040ez 2013 tax form There has been a notified payee underreporting. 1040ez 2013 tax form There has been a payee certification failure. 1040ez 2013 tax form In most cases, a TIN must be provided by a U. 1040ez 2013 tax form S. 1040ez 2013 tax form non-exempt recipient on Form W-9, Request for Taxpayer Identification Number and Certification. 1040ez 2013 tax form A payer files a tax return on Form 945, Annual Return of Withheld Federal Income Tax, for backup withholding. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form person. 1040ez 2013 tax form For example, you are required to report income paid to a foreign intermediary or flow-through entity that collects for a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person subject to Form 1099 reporting. 1040ez 2013 tax form See Identifying the Payee , later, for more information. 1040ez 2013 tax form Also see Section S. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form Wages paid to employees. 1040ez 2013 tax form   If you are the employer of a nonresident alien, you generally must withhold taxes at graduated rates. 1040ez 2013 tax form See Pay for Personal Services Performed , later. 1040ez 2013 tax form Effectively connected income by partnerships. 1040ez 2013 tax form   A withholding agent that is a partnership (whether U. 1040ez 2013 tax form S. 1040ez 2013 tax form or foreign) is also responsible for withholding on its income effectively connected with a U. 1040ez 2013 tax form S. 1040ez 2013 tax form trade or business that is allocable to foreign partners. 1040ez 2013 tax form See Partnership Withholding on Effectively Connected Income , later, for more information. 1040ez 2013 tax form U. 1040ez 2013 tax form S. 1040ez 2013 tax form real property interest. 1040ez 2013 tax form   A withholding agent also may be responsible for withholding if a foreign person transfers a U. 1040ez 2013 tax form S. 1040ez 2013 tax form real property interest to the agent, or if it is a corporation, partnership, trust, or estate that distributes a U. 1040ez 2013 tax form S. 1040ez 2013 tax form real property interest to a shareholder, partner, or beneficiary that is a foreign person. 1040ez 2013 tax form See U. 1040ez 2013 tax form S. 1040ez 2013 tax form Real Property Interest , later. 1040ez 2013 tax form Persons Subject to NRA Withholding NRA withholding applies only to payments made to a payee that is a foreign person. 1040ez 2013 tax form It does not apply to payments made to U. 1040ez 2013 tax form S. 1040ez 2013 tax form persons. 1040ez 2013 tax form Usually, you determine the payee's status as a U. 1040ez 2013 tax form S. 1040ez 2013 tax form or foreign person based on the documentation that person provides. 1040ez 2013 tax form See Documentation , later. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form However, there are situations in which the payee is a person other than the one to whom you actually make a payment. 1040ez 2013 tax form U. 1040ez 2013 tax form S. 1040ez 2013 tax form agent of foreign person. 1040ez 2013 tax form   If you make a payment to a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person and you have actual knowledge that the U. 1040ez 2013 tax form S. 1040ez 2013 tax form person is receiving the payment as an agent of a foreign person, you must treat the payment as made to the foreign person. 1040ez 2013 tax form However, if the U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form   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. 1040ez 2013 tax form S. 1040ez 2013 tax form person and not as a payment to a foreign person. 1040ez 2013 tax form You may be required to report the payment on Form 1099 and, if applicable, backup withhold. 1040ez 2013 tax form Disregarded entities. 1040ez 2013 tax form   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. 1040ez 2013 tax form The payee of a payment made to a disregarded entity is the owner of the entity. 1040ez 2013 tax form   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. 1040ez 2013 tax form   If the owner is a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person, you do not apply NRA withholding. 1040ez 2013 tax form However, you may be required to report the payment on Form 1099 and, if applicable, backup withhold. 1040ez 2013 tax form 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. 1040ez 2013 tax form Flow-Through Entities The payees of payments (other than income effectively connected with a U. 1040ez 2013 tax form S. 1040ez 2013 tax form trade or business) made to a foreign flow-through entity are the owners or beneficiaries of the flow-through entity. 1040ez 2013 tax form This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. 1040ez 2013 tax form Income that is, or is deemed to be, effectively connected with the conduct of a U. 1040ez 2013 tax form S. 1040ez 2013 tax form trade or business of a flow-through entity is treated as paid to the entity. 1040ez 2013 tax form All of the following are flow-through entities. 1040ez 2013 tax form A foreign partnership (other than a withholding foreign partnership). 1040ez 2013 tax form A foreign simple or foreign grantor trust (other than a withholding foreign trust). 1040ez 2013 tax form A fiscally transparent entity receiving income for which treaty benefits are claimed. 1040ez 2013 tax form See Fiscally transparent entity , later. 1040ez 2013 tax form 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. 1040ez 2013 tax form You also may be required to treat the entity as a flow-through entity under the presumption rules, discussed later. 1040ez 2013 tax form You must determine whether the owners or beneficiaries of a flow-through entity are U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form See Documentation and Presumption Rules , later. 1040ez 2013 tax form Withholding foreign partnerships and withholding foreign trusts are not flow-through entities. 1040ez 2013 tax form Foreign partnerships. 1040ez 2013 tax form    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. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form Example 1. 1040ez 2013 tax form A nonwithholding foreign partnership has three partners: a nonresident alien individual; a foreign corporation; and a U. 1040ez 2013 tax form S. 1040ez 2013 tax form citizen. 1040ez 2013 tax form You make a payment of U. 1040ez 2013 tax form S. 1040ez 2013 tax form source interest to the partnership. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form citizen. 1040ez 2013 tax form The partnership also gives you a complete withholding statement that enables you to associate a part of the interest payment to each partner. 1040ez 2013 tax form You must treat all three partners as the payees of the interest payment as if the payment were made directly to them. 1040ez 2013 tax form Report the payment to the nonresident alien and the foreign corporation on Forms 1042-S. 1040ez 2013 tax form Report the payment to the U. 1040ez 2013 tax form S. 1040ez 2013 tax form citizen on Form 1099-INT. 1040ez 2013 tax form Example 2. 1040ez 2013 tax form A nonwithholding foreign partnership has two partners: a foreign corporation and a nonwithholding foreign partnership. 1040ez 2013 tax form The second partnership has two partners, both nonresident alien individuals. 1040ez 2013 tax form You make a payment of U. 1040ez 2013 tax form S. 1040ez 2013 tax form source interest to the first partnership. 1040ez 2013 tax form 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. 1040ez 2013 tax form In addition, Forms W-8BEN from the partners are associated with the Form W-8IMY from the second partnership. 1040ez 2013 tax form The Forms W-8IMY from the partnerships have complete withholding statements associated with them. 1040ez 2013 tax form 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. 1040ez 2013 tax form Example 3. 1040ez 2013 tax form You make a payment of U. 1040ez 2013 tax form S. 1040ez 2013 tax form source dividends to a withholding foreign partnership. 1040ez 2013 tax form The partnership has two partners, both foreign corporations. 1040ez 2013 tax form 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. 1040ez 2013 tax form You must treat the partnership as the payee of the dividends. 1040ez 2013 tax form Foreign simple and grantor trust. 1040ez 2013 tax form   A trust is foreign unless it meets both of the following tests. 1040ez 2013 tax form A court within the United States is able to exercise primary supervision over the administration of the trust. 1040ez 2013 tax form One or more U. 1040ez 2013 tax form S. 1040ez 2013 tax form persons have the authority to control all substantial decisions of the trust. 1040ez 2013 tax form   In most cases, a foreign simple trust is a foreign trust that is required to distribute all of its income annually. 1040ez 2013 tax form A foreign grantor trust is a foreign trust that is treated as a grantor trust under sections 671 through 679 of the Code. 1040ez 2013 tax form   The payees of a payment made to a foreign simple trust are the beneficiaries of the trust. 1040ez 2013 tax form The payees of a payment made to a foreign grantor trust are the owners of the trust. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form Example. 1040ez 2013 tax form A foreign simple trust has three beneficiaries: two nonresident alien individuals and a U. 1040ez 2013 tax form S. 1040ez 2013 tax form citizen. 1040ez 2013 tax form You make a payment of interest to the foreign trust. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form citizen. 1040ez 2013 tax form 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. 1040ez 2013 tax form You must treat all three beneficiaries as the payees of the interest payment as if the payment were made directly to them. 1040ez 2013 tax form Report the payment to the nonresident aliens on Forms 1042-S. 1040ez 2013 tax form Report the payment to the U. 1040ez 2013 tax form S. 1040ez 2013 tax form citizen on Form 1099-INT. 1040ez 2013 tax form Fiscally transparent entity. 1040ez 2013 tax form   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. 1040ez 2013 tax form 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. 1040ez 2013 tax form ). 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form   The payees of a payment made to a fiscally transparent entity are the interest holders of the entity. 1040ez 2013 tax form Example. 1040ez 2013 tax form 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. 1040ez 2013 tax form A has two interest holders, B and C. 1040ez 2013 tax form B is a corporation organized under the laws of country Y. 1040ez 2013 tax form C is a corporation organized under the laws of country Z. 1040ez 2013 tax form Both countries Y and Z have an income tax treaty in force with the United States. 1040ez 2013 tax form A receives royalty income from U. 1040ez 2013 tax form S. 1040ez 2013 tax form sources that is not effectively connected with the conduct of a trade or business in the United States. 1040ez 2013 tax form For U. 1040ez 2013 tax form S. 1040ez 2013 tax form income tax purposes, A is treated as a partnership. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form Accordingly, A is fiscally transparent in its jurisdiction, country X. 1040ez 2013 tax form B and C are not fiscally transparent under the laws of their respective countries of incorporation. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form source royalty income for purposes of the U. 1040ez 2013 tax form S. 1040ez 2013 tax form -Y income tax treaty. 1040ez 2013 tax form 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. 1040ez 2013 tax form Therefore, A is not treated as fiscally transparent under the laws of country Z. 1040ez 2013 tax form Accordingly, C is not treated as deriving its share of the U. 1040ez 2013 tax form S. 1040ez 2013 tax form source royalty income for purposes of the U. 1040ez 2013 tax form S. 1040ez 2013 tax form -Z income tax treaty. 1040ez 2013 tax form 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. 1040ez 2013 tax form This rule applies for purposes of NRA withholding and for Form 1099 reporting and backup withholding. 1040ez 2013 tax form 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. 1040ez 2013 tax form An intermediary is a custodian, broker, nominee, or any other person that acts as an agent for another person. 1040ez 2013 tax form A foreign intermediary is either a qualified intermediary or a nonqualified intermediary. 1040ez 2013 tax form 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. 1040ez 2013 tax form You must determine whether the customers or account holders of a foreign intermediary are U. 1040ez 2013 tax form S. 1040ez 2013 tax form or foreign persons and, if the account holder or customer is foreign, whether a reduced rate of NRA withholding applies. 1040ez 2013 tax form You make these determinations based on the foreign intermediary's Form W-8IMY and associated information and documentation. 1040ez 2013 tax form 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. 1040ez 2013 tax form See Documentation and Presumption Rules , later. 1040ez 2013 tax form Nonqualified intermediary. 1040ez 2013 tax form   A nonqualified intermediary (NQI) is any intermediary that is a foreign person and that is not a qualified intermediary. 1040ez 2013 tax form The payees of a payment made to an NQI are the customers or account holders on whose behalf the NQI is acting. 1040ez 2013 tax form Example. 1040ez 2013 tax form You make a payment of interest to a foreign bank that is a nonqualified intermediary. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form person for whom the bank is collecting the payments. 1040ez 2013 tax form 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. 1040ez 2013 tax form The account holders are the payees of the interest payment. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form person on Form 1099-INT. 1040ez 2013 tax form Qualified intermediary. 1040ez 2013 tax form   A qualified intermediary (QI) is any foreign intermediary (or foreign branch of a U. 1040ez 2013 tax form S. 1040ez 2013 tax form intermediary) that has entered into a qualified intermediary withholding agreement (discussed later) with the IRS. 1040ez 2013 tax form 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. 1040ez 2013 tax form In this situation, the QI is required to withhold the tax. 1040ez 2013 tax form You can determine whether a QI has assumed responsibility from the Form W-8IMY provided by the QI. 1040ez 2013 tax form   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. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form person. 1040ez 2013 tax form Branches of financial institutions. 1040ez 2013 tax form   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. 1040ez 2013 tax form The countries with approved KYC rules are listed on IRS. 1040ez 2013 tax form gov. 1040ez 2013 tax form QI withholding agreement. 1040ez 2013 tax form   Foreign financial institutions and foreign branches of U. 1040ez 2013 tax form S. 1040ez 2013 tax form financial institutions can enter into an agreement with the IRS to be a qualified intermediary. 1040ez 2013 tax form   A QI is entitled to certain simplified withholding and reporting rules. 1040ez 2013 tax form In general, there are three major areas whereby intermediaries with QI status are afforded such simplified treatment. 1040ez 2013 tax form   To apply for QI status, complete Form 14345, Qualified Intermediary Application, and Form SS-4, Application for Employer Identification Number. 1040ez 2013 tax form These forms, and the procedures required to obtain a QI withholding agreement are available at www. 1040ez 2013 tax form irs. 1040ez 2013 tax form gov/Businesses/Corporations/Qualified-Intermediaries-(QI). 1040ez 2013 tax form Documentation. 1040ez 2013 tax form   A QI is not required to forward documentation obtained from foreign account holders to the U. 1040ez 2013 tax form S. 1040ez 2013 tax form withholding agent from whom the QI receives a payment of U. 1040ez 2013 tax form S. 1040ez 2013 tax form source income. 1040ez 2013 tax form The QI maintains such documentation at its location and provides the U. 1040ez 2013 tax form S. 1040ez 2013 tax form withholding agent with withholding rate pools. 1040ez 2013 tax form A withholding rate pool is a payment of a single type of income that is subject to a single rate of withholding. 1040ez 2013 tax form   A QI is required to provide the U. 1040ez 2013 tax form S. 1040ez 2013 tax form withholding agent with information regarding U. 1040ez 2013 tax form S. 1040ez 2013 tax form persons subject to Form 1099 information reporting unless the QI assumes the primary obligation to do Form 1099 reporting and backup withholding. 1040ez 2013 tax form   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. 1040ez 2013 tax form 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. 1040ez 2013 tax form Form 1042-S reporting. 1040ez 2013 tax form   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. 1040ez 2013 tax form Pooled basis reporting is not available for payments to certain account holders, such as a nonqualified intermediary or a flow-through entity (discussed earlier). 1040ez 2013 tax form Collective refund procedures. 1040ez 2013 tax form   A QI may seek a refund on behalf of its direct account holders. 1040ez 2013 tax form 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. 1040ez 2013 tax form U. 1040ez 2013 tax form S. 1040ez 2013 tax form branches of foreign banks and foreign insurance companies. 1040ez 2013 tax form   Special rules apply to a U. 1040ez 2013 tax form S. 1040ez 2013 tax form branch of a foreign bank subject to Federal Reserve Board supervision or a foreign insurance company subject to state regulatory supervision. 1040ez 2013 tax form If you agree to treat the branch as a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person, you may treat the branch as a U. 1040ez 2013 tax form S. 1040ez 2013 tax form payee for a payment subject to NRA withholding provided you receive a Form W-8IMY from the U. 1040ez 2013 tax form S. 1040ez 2013 tax form branch on which the agreement is evidenced. 1040ez 2013 tax form If you treat the branch as a U. 1040ez 2013 tax form S. 1040ez 2013 tax form payee, you are not required to withhold. 1040ez 2013 tax form Even though you agree to treat the branch as a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person, you must report the payment on Form 1042-S. 1040ez 2013 tax form   A financial institution organized in a U. 1040ez 2013 tax form S. 1040ez 2013 tax form possession is treated as a U. 1040ez 2013 tax form S. 1040ez 2013 tax form branch. 1040ez 2013 tax form The special rules discussed in this section apply to a possessions financial institution. 1040ez 2013 tax form   If you are paying a U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form person for amounts subject to NRA withholding. 1040ez 2013 tax form Consequently, amounts not subject to NRA withholding that are paid to a U. 1040ez 2013 tax form S. 1040ez 2013 tax form branch are not subject to Form 1099 reporting or backup withholding. 1040ez 2013 tax form   Alternatively, a U. 1040ez 2013 tax form S. 1040ez 2013 tax form branch may provide you with a Form W-8IMY with which it associates the documentation of the persons on whose behalf it acts. 1040ez 2013 tax form 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. 1040ez 2013 tax form See Nonqualified Intermediaries under  Documentation, later. 1040ez 2013 tax form   If the U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form Withholding foreign partnership and foreign trust. 1040ez 2013 tax form   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. 1040ez 2013 tax form 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. 1040ez 2013 tax form   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. 1040ez 2013 tax form A WP or WT acting in that capacity must assume NRA withholding responsibility for these amounts. 1040ez 2013 tax form 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. 1040ez 2013 tax form WP and WT withholding agreements. 1040ez 2013 tax form   The WP and WT withholding agreements and the application procedures for the agreements are in Revenue Procedure 2003-64. 1040ez 2013 tax form Also see the following items. 1040ez 2013 tax form Revenue Procedure 2004-21. 1040ez 2013 tax form Revenue Procedure 2005-77. 1040ez 2013 tax form Employer identification number (EIN). 1040ez 2013 tax form   A completed Form SS-4 must be submitted with the application for being a WP or WT. 1040ez 2013 tax form The WP or WT will be assigned a WP-EIN or WT-EIN to be used only when acting in that capacity. 1040ez 2013 tax form Documentation. 1040ez 2013 tax form   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. 1040ez 2013 tax form 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. 1040ez 2013 tax form The Form W-8IMY must contain the WP-EIN or WT-EIN. 1040ez 2013 tax form Foreign Persons A payee is subject to NRA withholding only if it is a foreign person. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form person. 1040ez 2013 tax form It also includes a foreign branch of a U. 1040ez 2013 tax form S. 1040ez 2013 tax form financial institution if the foreign branch is a qualified intermediary. 1040ez 2013 tax form In most cases, the U. 1040ez 2013 tax form S. 1040ez 2013 tax form branch of a foreign corporation or partnership is treated as a foreign person. 1040ez 2013 tax form Nonresident alien. 1040ez 2013 tax form   A nonresident alien is an individual who is not a U. 1040ez 2013 tax form S. 1040ez 2013 tax form citizen or a resident alien. 1040ez 2013 tax form A resident of a foreign country under the residence article of an income tax treaty is a nonresident alien individual for purposes of withholding. 1040ez 2013 tax form Married to U. 1040ez 2013 tax form S. 1040ez 2013 tax form citizen or resident alien. 1040ez 2013 tax form   Nonresident alien individuals married to U. 1040ez 2013 tax form S. 1040ez 2013 tax form citizens or resident aliens may choose to be treated as resident aliens for certain income tax purposes. 1040ez 2013 tax form However, these individuals are still subject to the NRA withholding rules that apply to nonresident aliens for all income except wages. 1040ez 2013 tax form Wages paid to these individuals are subject to graduated withholding. 1040ez 2013 tax form See Wages Paid to Employees—Graduated Withholding . 1040ez 2013 tax form Resident alien. 1040ez 2013 tax form   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. 1040ez 2013 tax form Green card test. 1040ez 2013 tax form 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. 1040ez 2013 tax form This is known as the green card test because these aliens hold immigrant visas (also known as green cards). 1040ez 2013 tax form Substantial presence test. 1040ez 2013 tax form An alien is considered a resident alien if the individual meets the substantial presence test for the calendar year. 1040ez 2013 tax form 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. 1040ez 2013 tax form   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. 1040ez 2013 tax form This exception is for a limited period of time. 1040ez 2013 tax form   For more information on resident and nonresident status, the tests for residence, and the exceptions to them, see Publication 519. 1040ez 2013 tax form Note. 1040ez 2013 tax form   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. 1040ez 2013 tax form For more information on making adjustments, see chapter 13 of Publication 15 (Circular E). 1040ez 2013 tax form Resident of a U. 1040ez 2013 tax form S. 1040ez 2013 tax form possession. 1040ez 2013 tax form   A bona fide resident of Puerto Rico, the U. 1040ez 2013 tax form S. 1040ez 2013 tax form Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), or American Samoa who is not a U. 1040ez 2013 tax form S. 1040ez 2013 tax form citizen or a U. 1040ez 2013 tax form S. 1040ez 2013 tax form national is treated as a nonresident alien for the withholding rules explained here. 1040ez 2013 tax form 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. 1040ez 2013 tax form   For more information, see Publication 570, Tax Guide for Individuals With Income From U. 1040ez 2013 tax form S. 1040ez 2013 tax form Possessions. 1040ez 2013 tax form Foreign corporations. 1040ez 2013 tax form   A foreign corporation is one that does not fit the definition of a domestic corporation. 1040ez 2013 tax form 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. 1040ez 2013 tax form Guam or Northern Mariana Islands corporations. 1040ez 2013 tax form   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). 1040ez 2013 tax form Note. 1040ez 2013 tax form   The provisions discussed below under U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form U. 1040ez 2013 tax form S. 1040ez 2013 tax form Virgin Islands and American Samoa corporations. 1040ez 2013 tax form   A corporation created or organized in, or under the laws of, the U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form Virgin Islands, American Samoa, Guam, the CNMI, or the United States. 1040ez 2013 tax form Foreign private foundations. 1040ez 2013 tax form   A private foundation that was created or organized under the laws of a foreign country is a foreign private foundation. 1040ez 2013 tax form 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. 1040ez 2013 tax form Other foreign organizations, associations, and charitable institutions. 1040ez 2013 tax form   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. 1040ez 2013 tax form 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. 1040ez 2013 tax form   Payments to these organizations, however, must be reported on Form 1042-S, even though no tax is withheld. 1040ez 2013 tax form   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. 1040ez 2013 tax form U. 1040ez 2013 tax form S. 1040ez 2013 tax form branches of foreign persons. 1040ez 2013 tax form   In most cases, a payment to a U. 1040ez 2013 tax form S. 1040ez 2013 tax form branch of a foreign person is a payment made to the foreign person. 1040ez 2013 tax form However, you may treat payments to U. 1040ez 2013 tax form S. 1040ez 2013 tax form branches of foreign banks and foreign insurance companies (discussed earlier) that are subject to U. 1040ez 2013 tax form S. 1040ez 2013 tax form regulatory supervision as payments made to a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person, if you and the U. 1040ez 2013 tax form S. 1040ez 2013 tax form branch have agreed to do so, and if their agreement is evidenced by a withholding certificate, Form W-8IMY. 1040ez 2013 tax form For this purpose, a financial institution organized under the laws of a U. 1040ez 2013 tax form S. 1040ez 2013 tax form possession is treated as a U. 1040ez 2013 tax form S. 1040ez 2013 tax form branch. 1040ez 2013 tax form 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. 1040ez 2013 tax form The payee is a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person. 1040ez 2013 tax form The payee is a foreign person that is the beneficial owner of the income and is entitled to a reduced rate of withholding. 1040ez 2013 tax form In most cases, you must get the documentation before you make the payment. 1040ez 2013 tax form The documentation is not valid if you know, or have reason to know, that it is unreliable or incorrect. 1040ez 2013 tax form See Standards of Knowledge , later. 1040ez 2013 tax form If you cannot reliably associate a payment with valid documentation, you must use the presumption rules discussed later. 1040ez 2013 tax form 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. 1040ez 2013 tax form The specific types of documentation are discussed in this section. 1040ez 2013 tax form However, see Withholding on Specific Income , later, as well as the instructions to the particular forms. 1040ez 2013 tax form 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. 1040ez 2013 tax form Section 1446 withholding. 1040ez 2013 tax form   Under section 1446 of the Code, a partnership must withhold tax on its effectively connected income allocable to a foreign partner. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form Joint owners. 1040ez 2013 tax form    If you make a payment to joint owners, you need to get documentation from each owner. 1040ez 2013 tax form Form W-9. 1040ez 2013 tax form   In most cases, you can treat the payee as a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person if the payee gives you a Form W-9. 1040ez 2013 tax form The Form W-9 can be used only by a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person and must contain the payee's taxpayer identification number (TIN). 1040ez 2013 tax form If there is more than one owner, you may treat the total amount as paid to a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person if any one of the owners gives you a Form W-9. 1040ez 2013 tax form See U. 1040ez 2013 tax form S. 1040ez 2013 tax form Taxpayer Identification Numbers , later. 1040ez 2013 tax form U. 1040ez 2013 tax form S. 1040ez 2013 tax form persons are not subject to NRA withholding, but may be subject to Form 1099 reporting and backup withholding. 1040ez 2013 tax form Form W-8. 1040ez 2013 tax form   In most cases, a foreign payee of the income should give you a form in the Form W-8 series. 1040ez 2013 tax form Until further notice, you can rely upon Forms W-8 that contain a P. 1040ez 2013 tax form O. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form person and that a street address is available. 1040ez 2013 tax form You may rely on Forms W-8 for which there is a U. 1040ez 2013 tax form S. 1040ez 2013 tax form mailing address provided you received the form prior to December 31, 2001. 1040ez 2013 tax form   If certain requirements are met, the foreign person can give you documentary evidence, rather than a Form W-8. 1040ez 2013 tax form You can rely on documentary evidence in lieu of a Form W-8 for a payment made in a U. 1040ez 2013 tax form S. 1040ez 2013 tax form possession. 1040ez 2013 tax form Other documentation. 1040ez 2013 tax form   Other documentation may be required to claim an exemption from, or a reduced rate of, withholding on pay for personal services. 1040ez 2013 tax form 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. 1040ez 2013 tax form These forms are discussed in Pay for Personal Services Performed under Withholding on Specific Income. 1040ez 2013 tax form 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. 1040ez 2013 tax form Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. 1040ez 2013 tax form   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. 1040ez 2013 tax form   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. 1040ez 2013 tax form 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. 1040ez 2013 tax form Claiming treaty benefits. 1040ez 2013 tax form   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. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form   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. 1040ez 2013 tax form   An entity derives income for which it is claiming treaty benefits only if the entity is not treated as fiscally transparent for that income. 1040ez 2013 tax form See Fiscally transparent entity discussed earlier under Flow-Through Entities. 1040ez 2013 tax form   Limitations on benefits provisions generally prohibit third country residents from obtaining treaty benefits. 1040ez 2013 tax form 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. 1040ez 2013 tax form   The exemptions from, or reduced rates of, U. 1040ez 2013 tax form S. 1040ez 2013 tax form tax vary under each treaty. 1040ez 2013 tax form You must check the provisions of the tax treaty that apply. 1040ez 2013 tax form 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. 1040ez 2013 tax form   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. 1040ez 2013 tax form 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. 1040ez 2013 tax form Exceptions to TIN requirement. 1040ez 2013 tax form   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. 1040ez 2013 tax form Income from marketable securities (discussed next). 1040ez 2013 tax form Unexpected payments to an individual (discussed under U. 1040ez 2013 tax form S. 1040ez 2013 tax form Taxpayer Identification Numbers ). 1040ez 2013 tax form Marketable securities. 1040ez 2013 tax form   A Form W-8BEN provided to claim treaty benefits does not need a U. 1040ez 2013 tax form S. 1040ez 2013 tax form TIN if the foreign beneficial owner is claiming the benefits on income from marketable securities. 1040ez 2013 tax form For this purpose, income from a marketable security consists of the following items. 1040ez 2013 tax form Dividends and interest from stocks and debt obligations that are actively traded. 1040ez 2013 tax form Dividends from any redeemable security issued by an investment company registered under the Investment Company Act of 1940 (mutual fund). 1040ez 2013 tax form 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. 1040ez 2013 tax form Income related to loans of any of the above securities. 1040ez 2013 tax form Offshore accounts. 1040ez 2013 tax form   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. 1040ez 2013 tax form   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. 1040ez 2013 tax form 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. 1040ez 2013 tax form An offshore account is an account maintained at an office or branch of a U. 1040ez 2013 tax form S. 1040ez 2013 tax form or foreign bank or other financial institution at any location outside the United States. 1040ez 2013 tax form   You may rely on documentary evidence given to you by a nonqualified intermediary or a flow-through entity with its Form W-8IMY. 1040ez 2013 tax form This rule applies even though you make the payment to a nonqualified intermediary or flow-through entity in the United States. 1040ez 2013 tax form 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. 1040ez 2013 tax form Documentary evidence. 1040ez 2013 tax form   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. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form   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. 1040ez 2013 tax form (See Effectively Connected Income , later. 1040ez 2013 tax form )   Effectively connected income for which a valid Form W-8ECI has been provided is generally not subject to NRA withholding. 1040ez 2013 tax form   If a partner submits this form to a partnership, the income claimed to be effectively connected with the conduct of a U. 1040ez 2013 tax form S. 1040ez 2013 tax form trade or business is subject to withholding under section 1446. 1040ez 2013 tax form 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. 1040ez 2013 tax form    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. 1040ez 2013 tax form Form W-8EXP, Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding. 1040ez 2013 tax form   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. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form   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. 1040ez 2013 tax form   See Foreign Governments and Certain Other Foreign Organizations , later. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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. 1040ez 2013 tax form The additional information required depends on the type of intermediary or flow-through entity and the extent of the withholding responsibilities it assumes. 1040ez 2013 tax form Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U. 1040ez 2013 tax form S. 1040ez 2013 tax form Branches for United States Tax Withholding. 1040ez 2013 tax form   This form is used by foreign intermediaries and foreign flow-through entities, as well as certain U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form branch of a foreign bank or insurance company and either is agreeing to be treated as a U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form For information on qualifying as an upper-tier foreign partnership, see Regulations section 1. 1040ez 2013 tax form 1446-5. 1040ez 2013 tax form Qualified Intermediaries In most cases, a QI is any foreign intermediary that has entered into a QI withholding agreement (discussed earlier) with the IRS. 1040ez 2013 tax form 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. 1040ez 2013 tax form The intermediary can claim that it is a QI until the IRS revokes its QI-EIN. 1040ez 2013 tax form 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. 1040ez 2013 tax form Responsibilities. 1040ez 2013 tax form   Payments made to a QI that does not assume NRA withholding responsibility are treated as paid to its account holders and customers. 1040ez 2013 tax form However, a QI is not required to provide you with documentation it obtains from its foreign account holders and customers. 1040ez 2013 tax form Instead, it provides you with a withholding statement that contains withholding rate pool information. 1040ez 2013 tax form 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. 1040ez 2013 tax form A qualified intermediary is required to provide you with information regarding U. 1040ez 2013 tax form S. 1040ez 2013 tax form persons subject to Form 1099 reporting and to provide you withholding rate pool information separately for each such U. 1040ez 2013 tax form S. 1040ez 2013 tax form person unless it has assumed Form 1099 reporting and backup withholding responsibility. 1040ez 2013 tax form For the alternative procedure for providing rate pool information for U. 1040ez 2013 tax form S. 1040ez 2013 tax form non-exempt persons, see the Form W-8IMY instructions. 1040ez 2013 tax form   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. 1040ez 2013 tax form   The extent to which you must have withholding rate pool information depends on the withholding and reporting obligations assumed by the QI. 1040ez 2013 tax form Primary responsibility not assumed. 1040ez 2013 tax form   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. 1040ez 2013 tax form Unless the alternative procedure applies, the qualified intermediary must provide you with a separate withholding rate pool for each U. 1040ez 2013 tax form S. 1040ez 2013 tax form person subject to Form 1099 reporting and/or backup withholding. 1040ez 2013 tax form 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. 1040ez 2013 tax form Primary NRA withholding responsibility assumed. 1040ez 2013 tax form   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. 1040ez 2013 tax form S. 1040ez 2013 tax form person, unless the alternative procedure applies, subject to Form 1099 reporting and/or backup withholding. 1040ez 2013 tax form 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. 1040ez 2013 tax form Primary NRA and Form 1099 responsibility assumed. 1040ez 2013 tax form   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. 1040ez 2013 tax form It is not necessary to associate the payment with withholding rate pools. 1040ez 2013 tax form Example. 1040ez 2013 tax form You make a payment of dividends to a QI. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form individual who provides it with a Form W-9. 1040ez 2013 tax form Each customer is entitled to 20% of the dividend payment. 1040ez 2013 tax form The QI does not assume any primary withholding responsibility. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form individual. 1040ez 2013 tax form 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. 1040ez 2013 tax form The part of the payment allocable to the U. 1040ez 2013 tax form S. 1040ez 2013 tax form individual (20%) is reportable on Form 1099-DIV. 1040ez 2013 tax form Smaller partnerships and trusts. 1040ez 2013 tax form   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. 1040ez 2013 tax form It is a foreign partnership or foreign simple or grantor trust. 1040ez 2013 tax form It is a direct account holder of the QI. 1040ez 2013 tax form It does not have any partner, beneficiary, or owner that is a U. 1040ez 2013 tax form S. 1040ez 2013 tax form person or a pass- through partner, beneficiary, or owner. 1040ez 2013 tax form   For information on these rules, see section 4A. 1040ez 2013 tax form 01 of the QI agreement. 1040ez 2013 tax form This is found in Appendix 3 of Revenue Procedure 2003-64. 1040ez 2013 tax form Also see Revenue Procedure 2004-21. 1040ez 2013 tax form Related partnerships and trusts. 1040ez 2013 tax form    A QI may apply special rules to a related partnership or trust only if the partnership or trust meets the following conditions. 1040ez 2013 tax form It is a foreign partnership or foreign simple or grantor trust. 1040ez 2013 tax form 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. 1040ez 2013 tax form For information on these rules, see section 4A. 1040ez 2013 tax form 02 of the QI agreement. 1040ez 2013 tax form This is found in Appendix 3 of Revenue Procedure 2003-64. 1040ez 2013 tax form Also see Revenue Procedure 2005-77. 1040ez 2013 tax form Nonqualified Intermediaries If you are making a payment to an NQI, foreign flow-through entity, or U. 1040ez 2013 tax form S. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form branch), and You have sufficient information to report the payment on Form 1042-S or Form 1099, if reporting is required. 1040ez 2013 tax form The NQI, flow-through entity, or U. 1040ez 2013 tax form S. 1040ez 2013 tax form branch must give you certain information on a withholding statement that is associated with the Form W-8IMY. 1040ez 2013 tax form A withholding statement must be updated to keep the information accurate prior to each payment. 1040ez 2013 tax form Withholding statement. 1040ez 2013 tax form   In most cases, a withholding statement must contain the following information. 1040ez 2013 tax form The name, address, and TIN (if any, or if required) of each person for whom documentation is provided. 1040ez 2013 tax form The type of documentation (documentary evidence, Form W-8, or Form W-9) for every person for whom documentation has been provided. 1040ez 2013 tax form The status of the person for whom the documentation has been provided, such as whether the person is a U. 1040ez 2013 tax form S. 1040ez 2013 tax form exempt recipient (U. 1040ez 2013 tax form S. 1040ez 2013 tax form person exempt from Form 1099 reporting), U. 1040ez 2013 tax form S. 1040ez 2013 tax form non-exempt recipient (U. 1040ez 2013 tax form S. 1040ez 2013 tax form person subject to Form 1099 reporting), or a foreign person. 1040ez 2013 tax form 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. 1040ez 2013 tax form S. 1040ez 2013 tax form branch. 1040ez 2013 tax form The type of recipient the person is, based on the recipient codes used on Form 1042-S. 1040ez 2013 tax form Information allocating each payment, by income type, to each payee (including U. 1040ez 2013 tax form S. 1040ez 2013 tax form exempt and U. 1040ez 2013 tax form S. 1040ez 2013 tax form non-exempt recipients) for whom documentation has been provided. 1040ez 2013 tax form The rate of withholding that applies to each foreign person to whom a payment is allocated. 1040ez 2013 tax form A foreign payee's country of residence. 1040ez 2013 tax form If a reduced rate of withholding is claimed, the basis for a reduced rate of withholding (for example, portfolio interest, treaty benefit, etc. 1040ez 2013 tax form ). 1040ez 2013 tax form 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. 1040ez 2013 tax form The name, address, and TIN (if any) of any other NQI, flow-through entity, or U. 1040ez 2013 tax form S. 1040ez 2013 tax form branch from which the payee will directly receive a payment. 1040ez 2013 tax form Any other information a withholding agent requests to fulfill its reporting and withholding obligations. 1040ez 2013 tax form Alternative procedure. 1040ez 2013 tax form   Under this alternative procedure the NQI can give you the information that allocates each payment to each foreign and U. 1040ez 2013 tax form S. 1040ez 2013 tax form exempt recipient by January 31 following the calendar year of payment, rather than prior to the payment being made as otherwise required. 1040ez 2013 tax form 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. 1040ez 2013 tax form You must receive the withholding statement with all the required information (other than item 5) prior to making the payment. 1040ez 2013 tax form    This alternative procedure cannot be used for payments to U. 1040ez 2013 tax form S. 1040ez 2013 tax form non-exempt recipients. 1040ez 2013 tax form Therefore, an NQI must always provide you with allocation information for all U. 1040ez 2013 tax form S. 1040ez 2013 tax form non-exempt recipients prior to a payment being made. 1040ez 2013 tax form Pooled withholding information. 1040ez 2013 tax form   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. 1040ez 2013 tax form 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. 1040ez 2013 tax form 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). 1040ez 2013 tax form 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. 1040ez 2013 tax form Failure to provide allocation information. 1040ez 2013 tax form   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. 1040ez 2013 tax form You must treat the payees as undocumented and apply the presumption rules, discussed later in Presumption Rules . 1040ez 2013 tax form An NQI is deemed to have f