File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

File 1040nr Online Free

How Can I Amend My 2011 Tax ReturnHow Do I Refile My TaxesTax Software 2012Free Tax Form 1040ezFile Amended Return OnlineFreetaxusa20122012 Irs Form 1040ez2011 1040 Income Tax FormWhere Do I File 2011 TaxesTax Software For 2012E File State Tax ReturnHr Block Free Tax Filing2011 Federal Income Tax 1040ezOnlinetaxes Hrblock ComIrs Form 1040ez 2014What Is 1040xAmend 2011 Federal ReturnFile State Return Free1040ez InstructionFree H R Block 2011Free Federal And State Tax PreparationFile Free State Tax Return OnlineFree Tax File1040 ComMilitary Tax ReturnsFree Turbo Tax FilingAmend Tax Forms2012 Tax Form 1040a1040x Form 2013H&r Block Tax FreeWww Irs Gov 2011freeefileTax Amendments1040How To File A 1040 EzTax PreparationFree Fed 1040ez FilingFile 2012 TaxesFederal Form 1040x1040 Ez 2010 Pdf1040ez Form And Instructions

File 1040nr Online Free

File 1040nr online free 1. File 1040nr online free   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. File 1040nr online free Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. File 1040nr online free Reseller statement. File 1040nr online free Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. File 1040nr online free Deep-draft ocean-going vessels. File 1040nr online free Passenger vessels. File 1040nr online free Ocean-going barges. File 1040nr online free State or local governments. File 1040nr online free Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel Definitions Excise taxes are imposed on all the following fuels. File 1040nr online free Gasoline, including aviation gasoline and gasoline blendstocks. File 1040nr online free Diesel fuel, including dyed diesel fuel. File 1040nr online free Diesel-water fuel emulsion. File 1040nr online free Kerosene, including dyed kerosene and kerosene used in aviation. File 1040nr online free Other Fuels (including alternative fuels). File 1040nr online free Compressed natural gas (CNG). File 1040nr online free Fuels used in commercial transportation on inland waterways. File 1040nr online free Any liquid used in a fractional ownership program aircraft as fuel. File 1040nr online free The following terms are used throughout the discussion of fuel taxes. File 1040nr online free Other terms are defined in the discussion of the specific fuels to which they pertain. File 1040nr online free Agri-biodiesel. File 1040nr online free   Agri-biodiesel means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats. File 1040nr online free Approved terminal or refinery. File 1040nr online free   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. File 1040nr online free Biodiesel. File 1040nr online free   Biodiesel means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet the registration requirements for fuels and fuel additives established by the Environmental Protection Agency (EPA) under section 211 of the Clean Air Act, and the requirements of the American Society of Testing Materials (ASTM) D6751. File 1040nr online free Blended taxable fuel. File 1040nr online free   This means any taxable fuel produced outside the bulk transfer/terminal system by mixing taxable fuel on which excise tax has been imposed and any other liquid on which excise tax has not been imposed. File 1040nr online free This does not include a mixture removed or sold during the calendar quarter if all such mixtures removed or sold by the blender contain less than 400 gallons of a liquid on which the tax has not been imposed. File 1040nr online free Blender. File 1040nr online free   This is the person that produces blended taxable fuel. File 1040nr online free Bulk transfer. File 1040nr online free   This is the transfer of taxable fuel by pipeline or vessel. File 1040nr online free Bulk transfer/terminal system. File 1040nr online free   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. File 1040nr online free Fuel in the supply tank of any engine, or in any tank car, railcar, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system. File 1040nr online free Cellulosic biofuel. File 1040nr online free   Cellulosic biofuel means any liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis that meets the registration requirements for fuels and fuel additives established by the EPA under section 211 of the Clean Air Act. File 1040nr online free Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). File 1040nr online free For fuels sold or used after December 31, 2009, cellulosic biofuel does not include fuel of which more than 4% (determined by weight) is any combination of water and sediment, fuel of which the ash content is more than 1%, or fuel that has an acid number greater than 25. File 1040nr online free Also see Second generation biofuel below. File 1040nr online free Diesel-water fuel emulsion. File 1040nr online free   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. File 1040nr online free The emulsion additive used to produce the fuel must be registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. File 1040nr online free Dry lease aircraft exchange. File 1040nr online free   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. File 1040nr online free Enterer. File 1040nr online free   This is the importer of record (under customs law) for the taxable fuel. File 1040nr online free However, if the importer of record is acting as an agent, such as a customs broker, the person for whom the agent is acting is the enterer. File 1040nr online free If there is no importer of record, the owner at the time of entry into the United States is the enterer. File 1040nr online free Entry. File 1040nr online free   Taxable fuel is entered into the United States when it is brought into the United States and applicable customs law requires that it be entered for consumption, use, or warehousing. File 1040nr online free This does not apply to fuel brought into Puerto Rico (which is part of the U. File 1040nr online free S. File 1040nr online free customs territory), but does apply to fuel brought into the United States from Puerto Rico. File 1040nr online free Fractional ownership aircraft program and fractional program aircraft. File 1040nr online free   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. File 1040nr online free Measurement of taxable fuel. File 1040nr online free   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. File 1040nr online free Other fuels. File 1040nr online free   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. File 1040nr online free Pipeline operator. File 1040nr online free   This is the person that operates a pipeline within the bulk transfer/terminal system. File 1040nr online free Position holder. File 1040nr online free   This is the person that holds the inventory position in the taxable fuel in the terminal, as reflected in the records of the terminal operator. File 1040nr online free You hold the inventory position when you have a contractual agreement with the terminal operator for the use of the storage facilities and terminaling services for the taxable fuel. File 1040nr online free A terminal operator that owns taxable fuel in its terminal is a position holder. File 1040nr online free Rack. File 1040nr online free   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. File 1040nr online free Refiner. File 1040nr online free   This is any person that owns, operates, or otherwise controls a refinery. File 1040nr online free Refinery. File 1040nr online free   This is a facility used to produce taxable fuel and from which taxable fuel may be removed by pipeline, by vessel, or at a rack. File 1040nr online free However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. File 1040nr online free For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. File 1040nr online free Registrant. File 1040nr online free   This is a taxable fuel registrant (see Registration Requirements, later). File 1040nr online free Removal. File 1040nr online free   This is any physical transfer of taxable fuel. File 1040nr online free It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. File 1040nr online free However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. File 1040nr online free Renewable diesel. File 1040nr online free   See Renewable Diesel Credits in chapter 2. File 1040nr online free Sale. File 1040nr online free   For taxable fuel not in a terminal, this is the transfer of title to, or substantial incidents of ownership in, taxable fuel to the buyer for money, services, or other property. File 1040nr online free For taxable fuel in a terminal, this is the transfer of the inventory position if the transferee becomes the position holder for that taxable fuel. File 1040nr online free Second generation biofuel. File 1040nr online free   This is any liquid fuel derived by, or from, qualified feedstocks, and meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U. File 1040nr online free S. File 1040nr online free C. File 1040nr online free 7545). File 1040nr online free It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. File 1040nr online free It is not alcohol of less than 150 proof (disregard any added denaturants). File 1040nr online free See Form 6478 for more information. File 1040nr online free State. File 1040nr online free   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. File 1040nr online free An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. File 1040nr online free Taxable fuel. File 1040nr online free   This means gasoline, diesel fuel, and kerosene. File 1040nr online free Terminal. File 1040nr online free   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. File 1040nr online free It does not include a facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline if no gasoline is removed from the facility. File 1040nr online free A terminal does not include any facility where finished gasoline, diesel fuel, or kerosene is stored if the facility is operated by a registrant and all such taxable fuel stored at the facility has been previously taxed upon removal from a refinery or terminal. File 1040nr online free Terminal operator. File 1040nr online free   This is any person that owns, operates, or otherwise controls a terminal. File 1040nr online free Throughputter. File 1040nr online free   This is any person that is a position holder or that owns taxable fuel within the bulk transfer/terminal system (other than in a terminal). File 1040nr online free Vessel operator. File 1040nr online free   This is the person that operates a vessel within the bulk transfer/terminal system. File 1040nr online free However, vessel does not include a deep draft ocean-going vessel. File 1040nr online free Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. File 1040nr online free A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. File 1040nr online free For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. File 1040nr online free The returns are due the last day of the month following the month in which the transaction occurs. File 1040nr online free Generally, these returns can be filed on paper or electronically. File 1040nr online free For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. File 1040nr online free Publication 3536 is only available on the IRS website. File 1040nr online free Form 720-TO. File 1040nr online free   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. File 1040nr online free Each terminal operator must file a separate form for each approved terminal. File 1040nr online free Form 720-CS. File 1040nr online free   This information return must be filed by bulk transport carriers (barges, vessels, and pipelines) who receive liquid product from an approved terminal or deliver liquid product to an approved terminal. File 1040nr online free Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. File 1040nr online free See Form 637 for other persons who must register and for more information about registration. File 1040nr online free Persons that are required to be registered. File 1040nr online free   You are required to be registered if you are a: Blender; Enterer; Pipeline operator; Position holder; Refiner; Terminal operator; Vessel operator; Producer or importer of alcohol, biodiesel, agri-biodiesel, and renewable diesel; or Producer of cellulosic or second generation biofuel. File 1040nr online free Persons that may register. File 1040nr online free   You may, but are not required to, register if you are a: Feedstock user, Industrial user, Throughputter that is not a position holder, Ultimate vendor, Diesel-water fuel emulsion producer, Credit card issuer, or Alternative fuel claimant. File 1040nr online free Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. File 1040nr online free However, they must be registered to file claims for certain sales and uses of fuel. File 1040nr online free See Form 637 for more information. File 1040nr online free Taxable fuel registrant. File 1040nr online free   This is an enterer, an industrial user, a refiner, a terminal operator, or a throughputter who received a Letter of Registration under the excise tax registration provisions and whose registration has not been revoked or suspended. File 1040nr online free The term registrant as used in the discussions of these fuels means a taxable fuel registrant. File 1040nr online free Additional information. File 1040nr online free   See the Form 637 instructions for the information you must submit when you apply for registration. File 1040nr online free Failure to register. File 1040nr online free   The penalty for failure to register if you must register, unless due to reasonable cause, is $10,000 for the initial failure, and then $1,000 each day thereafter you fail to register. File 1040nr online free Gasoline and Aviation Gasoline Gasoline. File 1040nr online free   Gasoline means all products commonly or commercially known or sold as gasoline with an octane rating of 75 or more that are suitable for use as a motor fuel. File 1040nr online free Gasoline includes any gasoline blend other than: Qualified ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from coal, including peat), Partially exempt ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from natural gas), or Denatured alcohol. File 1040nr online free Gasoline also includes gasoline blendstocks, discussed later. File 1040nr online free Aviation gasoline. File 1040nr online free   This means all special grades of gasoline suitable for use in aviation reciprocating engines and covered by ASTM specification D910 or military specification MIL-G-5572. File 1040nr online free Taxable Events The tax on gasoline is $. File 1040nr online free 184 per gallon. File 1040nr online free The tax on aviation gasoline is $. File 1040nr online free 194 per gallon. File 1040nr online free When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. File 1040nr online free 141 per gallon. File 1040nr online free See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. File 1040nr online free Tax is imposed on the removal, entry, or sale of gasoline. File 1040nr online free Each of these events is discussed later. File 1040nr online free Also, see the special rules that apply to gasoline blendstocks, later. File 1040nr online free If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. File 1040nr online free See Refunds of Second Tax in chapter 2. File 1040nr online free Removal from terminal. File 1040nr online free   All removals of gasoline at a terminal rack are taxable. File 1040nr online free The position holder for that gasoline is liable for the tax. File 1040nr online free Two-party exchanges. File 1040nr online free   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. File 1040nr online free A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. File 1040nr online free The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. File 1040nr online free The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. File 1040nr online free The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. File 1040nr online free The transaction is subject to a written contract. File 1040nr online free Terminal operator's liability. File 1040nr online free   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. File 1040nr online free   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. File 1040nr online free The terminal operator is a registrant. File 1040nr online free The terminal operator has an unexpired notification certificate (discussed later) from the position holder. File 1040nr online free The terminal operator has no reason to believe any information on the certificate is false. File 1040nr online free Removal from refinery. File 1040nr online free   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. File 1040nr online free It is made by bulk transfer and the refiner, the owner of the gasoline immediately before the removal, or the operator of the pipeline or vessel is not a registrant. File 1040nr online free It is made at the refinery rack. File 1040nr online free The refiner is liable for the tax. File 1040nr online free Exception. File 1040nr online free   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. File 1040nr online free The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. File 1040nr online free The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. File 1040nr online free The removal from the refinery is by railcar. File 1040nr online free The same person operates the refinery and the facility at which the gasoline is received. File 1040nr online free Entry into the United States. File 1040nr online free   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. File 1040nr online free It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. File 1040nr online free It is not made by bulk transfer. File 1040nr online free The enterer is liable for the tax. File 1040nr online free Importer of record's liability. File 1040nr online free   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. File 1040nr online free   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. File 1040nr online free The importer of record has an unexpired notification certificate (discussed later) from the enterer. File 1040nr online free The importer of record has no reason to believe any information in the certificate is false. File 1040nr online free Customs bond. File 1040nr online free   The customs bond will not be charged for the tax imposed on the entry of the gasoline if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. File 1040nr online free Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. File 1040nr online free   The removal by bulk transfer of gasoline from a terminal is taxable if the position holder for the gasoline or the operator of the pipeline or vessel is not a registrant. File 1040nr online free The position holder is liable for the tax. File 1040nr online free The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. File 1040nr online free However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. File 1040nr online free Bulk transfers not received at approved terminal or refinery. File 1040nr online free   The removal by bulk transfer of gasoline from a terminal or refinery, or the entry of gasoline by bulk transfer into the United States, is taxable if the following conditions apply. File 1040nr online free No tax was previously imposed (as discussed earlier) on any of the following events. File 1040nr online free The removal from the refinery. File 1040nr online free The entry into the United States. File 1040nr online free The removal from a terminal by an unregistered position holder. File 1040nr online free Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). File 1040nr online free   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. File 1040nr online free However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. File 1040nr online free The owner is a registrant. File 1040nr online free The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. File 1040nr online free The owner has no reason to believe any information on the certificate is false. File 1040nr online free The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. File 1040nr online free The operator is jointly and severally liable if the owner does not meet these conditions. File 1040nr online free Sales to unregistered person. File 1040nr online free   The sale of gasoline located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. File 1040nr online free   The seller is liable for the tax. File 1040nr online free However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. File 1040nr online free   The seller is a registrant. File 1040nr online free The seller has an unexpired notification certificate (discussed later) from the buyer. File 1040nr online free The seller has no reason to believe any information on the certificate is false. File 1040nr online free The buyer of the gasoline is liable for the tax if the seller meets these conditions. File 1040nr online free The buyer is jointly and severally liable if the seller does not meet these conditions. File 1040nr online free Exception. File 1040nr online free   The tax does not apply to a sale if all of the following apply. File 1040nr online free The buyer's principal place of business is not in the United States. File 1040nr online free The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. File 1040nr online free The seller is a registrant and the exporter of record. File 1040nr online free The fuel was exported. File 1040nr online free Removal or sale of blended gasoline. File 1040nr online free   The removal or sale of blended gasoline by the blender is taxable. File 1040nr online free See Blended taxable fuel under Definitions, earlier. File 1040nr online free   The blender is liable for the tax. File 1040nr online free The tax is figured on the number of gallons not previously subject to the tax on gasoline. File 1040nr online free   Persons who blend alcohol with gasoline to produce an alcohol fuel mixture outside the bulk transfer/terminal system must pay the gasoline tax on the volume of alcohol in the mixture. File 1040nr online free See Form 720 to report this tax. File 1040nr online free You also must be registered with the IRS as a blender. File 1040nr online free See Form 637. File 1040nr online free   However, if an untaxed liquid is sold as taxed taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. File 1040nr online free Notification certificate. File 1040nr online free   The notification certificate is used to notify a person of the registration status of the registrant. File 1040nr online free A copy of the registrant's letter of registration cannot be used as a notification certificate. File 1040nr online free A model notification certificate is shown in the Appendix as Model Certificate C. File 1040nr online free A notification certificate must contain all information necessary to complete the model. File 1040nr online free   The certificate may be included as part of any business records normally used for a sale. File 1040nr online free A certificate expires on the earlier of the date the registrant provides a new certificate, or the date the recipient of the certificate is notified that the registrant's registration has been revoked or suspended. File 1040nr online free The registrant must provide a new certificate if any information on a certificate has changed. File 1040nr online free Additional persons liable. File 1040nr online free   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax is imposed on: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty, or Anyone who willfully causes the person to fail to pay the tax. File 1040nr online free Gasoline Blendstocks Gasoline blendstocks may be subject to $. File 1040nr online free 001 per gallon LUST tax as discussed below. File 1040nr online free Gasoline includes gasoline blendstocks. File 1040nr online free The previous discussions apply to these blendstocks. File 1040nr online free However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. File 1040nr online free 001 per gallon or are not subject to the excise tax. File 1040nr online free Blendstocks. File 1040nr online free   Gasoline blendstocks are: Alkylate, Butane, Butene, Catalytically cracked gasoline, Coker gasoline, Ethyl tertiary butyl ether (ETBE), Hexane, Hydrocrackate, Isomerate, Methyl tertiary butyl ether (MTBE), Mixed xylene (not including any separated isomer of xylene), Natural gasoline, Pentane, Pentane mixture, Polymer gasoline, Raffinate, Reformate, Straight-run gasoline, Straight-run naphtha, Tertiary amyl methyl ether (TAME), Tertiary butyl alcohol (gasoline grade) (TBA), Thermally cracked gasoline, and Toluene. File 1040nr online free   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. File 1040nr online free Not used to produce finished gasoline. File 1040nr online free   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. File 1040nr online free Removals and entries not connected to sale. File 1040nr online free   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. File 1040nr online free Removals and entries connected to sale. File 1040nr online free   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant, and at the time of the sale, meets the following requirements. File 1040nr online free The person has an unexpired certificate (discussed later) from the buyer. File 1040nr online free The person has no reason to believe any information in the certificate is false. File 1040nr online free Sales after removal or entry. File 1040nr online free   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. File 1040nr online free The seller is liable for the tax. File 1040nr online free However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. File 1040nr online free The seller has an unexpired certificate (discussed next) from the buyer. File 1040nr online free The seller has no reason to believe any information in the certificate is false. File 1040nr online free Certificate of buyer. File 1040nr online free   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. File 1040nr online free The certificate may be included as part of any business records normally used for a sale. File 1040nr online free A model certificate is shown in the Appendix as Model Certificate D. File 1040nr online free The certificate must contain all information necessary to complete the model. File 1040nr online free   A certificate expires on the earliest of the following dates. File 1040nr online free The date 1 year after the effective date (not earlier than the date signed) of the certificate. File 1040nr online free The date a new certificate is provided to the seller. File 1040nr online free The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. File 1040nr online free The buyer must provide a new certificate if any information on a certificate has changed. File 1040nr online free   The IRS may withdraw the buyer's right to provide a certificate if that buyer uses the gasoline blendstocks in the production of finished gasoline or resells the blendstocks without getting a certificate from its buyer. File 1040nr online free Received at approved terminal or refinery. File 1040nr online free   The nonbulk removal or entry of gasoline blendstocks received at an approved terminal or refinery is not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) meets all the following requirements. File 1040nr online free The person is a registrant. File 1040nr online free The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. File 1040nr online free The person has no reason to believe any information on the certificate is false. File 1040nr online free Bulk transfers to registered industrial user. File 1040nr online free   The removal of gasoline blendstocks from a pipeline or vessel is not taxable (other than LUST) if the blendstocks are received by a registrant that is an industrial user. File 1040nr online free An industrial user is any person that receives gasoline blendstocks by bulk transfer for its own use in the manufacture of any product other than finished gasoline. File 1040nr online free Credits or Refunds. File 1040nr online free   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. File 1040nr online free For more information, see chapter 2. File 1040nr online free Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). File 1040nr online free However, special rules (discussed later) apply to dyed diesel fuel and dyed kerosene, and to undyed diesel fuel and undyed kerosene sold or used in Alaska for certain nontaxable uses and undyed kerosene used for a feedstock purpose. File 1040nr online free Diesel fuel means: Any liquid that without further processing or blending is suitable for use as a fuel in a diesel-powered highway vehicle or train, and Transmix. File 1040nr online free A liquid is suitable for this use if the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. File 1040nr online free A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. File 1040nr online free However, a liquid does not possess this practical and commercial fitness solely by reason of its possible or rare use as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. File 1040nr online free Diesel fuel does not include gasoline, kerosene, excluded liquid, No. File 1040nr online free 5 and No. File 1040nr online free 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. File 1040nr online free An excluded liquid is either of the following. File 1040nr online free A liquid that contains less than 4% normal paraffins. File 1040nr online free A liquid with all the following properties. File 1040nr online free Distillation range of 125 degrees Fahrenheit or less. File 1040nr online free Sulfur content of 10 ppm or less. File 1040nr online free Minimum color of +27 Saybolt. File 1040nr online free Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. File 1040nr online free Kerosene. File 1040nr online free   This means any of the following liquids. File 1040nr online free One of the two grades of kerosene (No. File 1040nr online free 1-K and No. File 1040nr online free 2-K) covered by ASTM specification D3699. File 1040nr online free Kerosene-type jet fuel covered by ASTM specification D1655 or military specification MIL-DTL-5624T (Grade JP-5) or MIL-DTL-83133E (Grade JP-8). File 1040nr online free See Kerosene for Use in Aviation, later. File 1040nr online free   However, kerosene does not include excluded liquid, discussed earlier. File 1040nr online free   Kerosene also includes any liquid that would be described above but for the presence of a dye of the type used to dye kerosene for a nontaxable use. File 1040nr online free Diesel-powered highway vehicle. File 1040nr online free   This is any self-propelled vehicle designed to carry a load over public highways (whether or not also designed to perform other functions) and propelled by a diesel-powered engine. File 1040nr online free Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. File 1040nr online free For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. File 1040nr online free 2) in chapter 2. File 1040nr online free Diesel-powered train. File 1040nr online free   This is any diesel-powered equipment or machinery that rides on rails. File 1040nr online free The term includes a locomotive, work train, switching engine, and track maintenance machine. File 1040nr online free Taxable Events The tax on diesel fuel and kerosene is $. File 1040nr online free 244 per gallon. File 1040nr online free It is imposed on the removal, entry, or sale of diesel fuel and kerosene. File 1040nr online free Each of these events is discussed later. File 1040nr online free Only the $. File 1040nr online free 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. File 1040nr online free If the tax is paid on the diesel fuel or kerosene in more than one event, a refund may be allowed for the “second” tax paid. File 1040nr online free See Refunds of Second Tax in chapter 2. File 1040nr online free Use in certain intercity and local buses. File 1040nr online free   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. File 1040nr online free A claim for $. File 1040nr online free 17 per gallon may be made by the registered ultimate vendor (under certain conditions) or the ultimate purchaser for undyed diesel fuel or undyed kerosene sold for use in certain intercity or local buses. File 1040nr online free An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. File 1040nr online free The bus must be engaged in one of the following activities. File 1040nr online free Scheduled transportation along regular routes regardless of the size of the bus. File 1040nr online free Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). File 1040nr online free A bus is available to the general public if the bus is available for hire to more than a limited number of persons, groups, or organizations. File 1040nr online free Removal from terminal. File 1040nr online free   All removals of diesel fuel and kerosene at a terminal rack are taxable. File 1040nr online free The position holder for that fuel is liable for the tax. File 1040nr online free Two-party exchanges. File 1040nr online free   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. File 1040nr online free A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. File 1040nr online free The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. File 1040nr online free The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. File 1040nr online free The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. File 1040nr online free The transaction is subject to a written contract. File 1040nr online free Terminal operator's liability. File 1040nr online free   The terminal operator is jointly and severally liable for the tax if the terminal operator provides any person with any bill of lading, shipping paper, or similar document indicating that diesel fuel or kerosene is dyed (discussed later). File 1040nr online free   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. File 1040nr online free However, a terminal operator will not be liable for the tax in this situation if, at the time of the removal, the following conditions are met. File 1040nr online free The terminal operator is a registrant. File 1040nr online free The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. File 1040nr online free The terminal operator has no reason to believe any information on the certificate is false. File 1040nr online free Removal from refinery. File 1040nr online free   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. File 1040nr online free It is made by bulk transfer and the refiner, the owner of the fuel immediately before the removal, or the operator of the pipeline or vessel is not a registrant. File 1040nr online free It is made at the refinery rack. File 1040nr online free The refiner is liable for the tax. File 1040nr online free Exception. File 1040nr online free   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. File 1040nr online free The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. File 1040nr online free The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. File 1040nr online free The removal from the refinery is by: Railcar and the same person operates the refinery and the facility at which the diesel fuel or kerosene is received, or For diesel fuel only, a trailer or semi-trailer used exclusively to transport the diesel fuel from a refinery (described in (1)) to a facility (described in (2)) less than 20 miles from the refinery. File 1040nr online free Entry into the United States. File 1040nr online free   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. File 1040nr online free It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. File 1040nr online free It is not made by bulk transfer. File 1040nr online free The enterer is liable for the tax. File 1040nr online free Importer of record's liability. File 1040nr online free   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. File 1040nr online free   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. File 1040nr online free The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. File 1040nr online free The importer of record has no reason to believe any information in the certificate is false. File 1040nr online free Customs bond. File 1040nr online free   The customs bond will not be charged for the tax imposed on the entry of the diesel fuel or kerosene if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. File 1040nr online free Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. File 1040nr online free   The removal by bulk transfer of diesel fuel or kerosene from a terminal is taxable if the position holder for that fuel or the operator of the pipeline or vessel is not a registrant. File 1040nr online free The position holder is liable for the tax. File 1040nr online free The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. File 1040nr online free However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. File 1040nr online free Bulk transfers not received at approved terminal or refinery. File 1040nr online free   The removal by bulk transfer of diesel fuel or kerosene from a terminal or refinery or the entry of diesel fuel or kerosene by bulk transfer into the United States is taxable if the following conditions apply. File 1040nr online free No tax was previously imposed (as discussed earlier) on any of the following events. File 1040nr online free The removal from the refinery. File 1040nr online free The entry into the United States. File 1040nr online free The removal from a terminal by an unregistered position holder. File 1040nr online free Upon removal from the pipeline or vessel, the diesel fuel or kerosene is not received at an approved terminal or refinery (or at another pipeline or vessel). File 1040nr online free   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. File 1040nr online free However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. File 1040nr online free The owner is a registrant. File 1040nr online free The owner has an unexpired notification certificate (discussed under Gasoline) from the operator of the terminal or refinery where the diesel fuel or kerosene is received. File 1040nr online free The owner has no reason to believe any information on the certificate is false. File 1040nr online free The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. File 1040nr online free The operator is jointly and severally liable if the owner does not meet these conditions. File 1040nr online free Sales to unregistered person. File 1040nr online free   The sale of diesel fuel or kerosene located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. File 1040nr online free   The seller is liable for the tax. File 1040nr online free However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. File 1040nr online free The seller is a registrant. File 1040nr online free The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. File 1040nr online free The seller has no reason to believe any information on the certificate is false. File 1040nr online free The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. File 1040nr online free The buyer is jointly and severally liable if the seller does not meet these conditions. File 1040nr online free Exception. File 1040nr online free   The tax does not apply to a sale if all of the following apply. File 1040nr online free The buyer's principal place of business is not in the United States. File 1040nr online free The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. File 1040nr online free The seller is a registrant and the exporter of record. File 1040nr online free The fuel was exported. File 1040nr online free Removal or sale of blended diesel fuel or kerosene. File 1040nr online free   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. File 1040nr online free Blended taxable fuel produced using biodiesel is subject to the tax. File 1040nr online free See Blended taxable fuel under Definitions, earlier. File 1040nr online free   The blender is liable for the tax. File 1040nr online free The tax is figured on the number of gallons not previously subject to the tax. File 1040nr online free   Persons who blend biodiesel with undyed diesel fuel to produce and sell or use a biodiesel mixture outside the bulk transfer/terminal system must pay the diesel fuel tax on the volume of biodiesel in the mixture. File 1040nr online free Generally, the biodiesel mixture must be diesel fuel (defined earlier). File 1040nr online free See Form 720 to report this tax. File 1040nr online free You also must be registered by the IRS as a blender. File 1040nr online free See Form 637 for more information. File 1040nr online free   However, if an untaxed liquid is sold as taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. File 1040nr online free Additional persons liable. File 1040nr online free   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax applies to: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty; or Anyone who willfully causes the person to fail to pay the tax. File 1040nr online free Credits or Refunds. File 1040nr online free   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. File 1040nr online free For more information, see chapter 2. File 1040nr online free Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. File 1040nr online free 001 per gallon LUST tax as discussed below, unless the fuel is for export. File 1040nr online free The excise tax is not imposed on the removal, entry, or sale of diesel fuel or kerosene (other than the LUST tax) if all the following tests are met. File 1040nr online free The person otherwise liable for tax (for example, the position holder) is a registrant. File 1040nr online free In the case of a removal from a terminal, the terminal is an approved terminal. File 1040nr online free The diesel fuel or kerosene satisfies the dyeing requirements (described next). File 1040nr online free Dyeing requirements. File 1040nr online free   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. File 1040nr online free It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. File 1040nr online free 9 pounds of the solid dye standard Solvent Red 26 per thousand barrels of fuel or any dye of a type and in a concentration that has been approved by the Commissioner. File 1040nr online free Is indelibly dyed by mechanical injection. File 1040nr online free See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. File 1040nr online free Notice required. File 1040nr online free   A legible and conspicuous notice stating either: DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE or DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE must be: Provided by the terminal operator to any person that receives dyed diesel fuel or dyed kerosene at a terminal rack of that operator, and Posted by a seller on any retail pump or other delivery facility where it sells dyed diesel fuel or dyed kerosene for use by its buyer. File 1040nr online free   The notice under item (1) must be provided by the time of the removal and must appear on all shipping papers, bills of lading, and similar documents accompanying the removal of the fuel. File 1040nr online free   Any seller that fails to post the required notice under item (2) is presumed to know that the fuel will be used for a taxable use (a use other than a nontaxable use listed later). File 1040nr online free That seller is subject to the penalty described next. File 1040nr online free Penalty. File 1040nr online free   A penalty is imposed on a person if any of the following situations apply. File 1040nr online free Any dyed fuel is sold or held for sale by the person for a use the person knows or has reason to know is not a nontaxable use of the fuel. File 1040nr online free Any dyed fuel is held for use or used by the person for a use other than a nontaxable use and the person knew, or had reason to know, that the fuel was dyed. File 1040nr online free The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. File 1040nr online free The person has knowledge that a dyed fuel that has been altered, as described in (3) above, sells or holds for sale such fuel for any use for which the person knows or has reason to know is not a nontaxable use of the fuel. File 1040nr online free   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. File 1040nr online free After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. File 1040nr online free   This penalty is in addition to any tax imposed on the fuel. File 1040nr online free   If the penalty is imposed, each officer, employee, or agent of a business entity who willfully participated in any act giving rise to the penalty is jointly and severally liable with that entity for the penalty. File 1040nr online free   There is no administrative appeal or review allowed for the third and subsequent penalty imposed by section 6715 on any person except for: Fraud or a mistake in the chemical analysis, or Mathematical calculation of the penalty. File 1040nr online free   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. File 1040nr online free However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. File 1040nr online free The penalty may apply if the fuel is held for sale or use for a taxable use while the back-up tax does not apply unless the fuel is delivered into a fuel supply tank. File 1040nr online free Exception to penalty. File 1040nr online free   The penalty under item (3) will not apply in any of the following situations. File 1040nr online free Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. File 1040nr online free Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any other liquid (other than diesel fuel or kerosene) that contains the type and amount of dye required to meet the dyeing requirements. File 1040nr online free The alteration or attempted alteration occurs in an exempt area of Alaska. File 1040nr online free See Removal for sale or use in Alaska, later. File 1040nr online free Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with diesel fuel or kerosene not meeting the dyeing requirements and the blending occurs as part of a nontaxable use (other than export), discussed later. File 1040nr online free Alaska and Feedstocks Tax of $. File 1040nr online free 001 per gallon is imposed on: Undyed diesel fuel or undyed kerosene sold or used in Alaska for certain nontaxable uses (see Later sales on page 10). File 1040nr online free Undyed kerosene used for feedstock purposes. File 1040nr online free Removal for sale or use in Alaska. File 1040nr online free   No tax is imposed on the removal, entry, or sale of diesel fuel or kerosene in Alaska for ultimate sale or use in certain areas of Alaska for certain nontaxable uses. File 1040nr online free The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. File 1040nr online free The person otherwise liable for the tax (position holder, refiner, or enterer): Is a registrant, Can show satisfactory evidence of the nontaxable nature of the transaction, and Has no reason to believe the evidence is false. File 1040nr online free In the case of a removal from a terminal, the terminal is an approved terminal. File 1040nr online free The owner of the fuel immediately after the removal or entry holds the fuel for its own use in a nontaxable use (discussed later) or is a qualified dealer. File 1040nr online free   If all three of the requirements above are not met, then tax is imposed at $. File 1040nr online free 244 per gallon. File 1040nr online free   A qualified dealer is any person that holds a qualified dealer license from the state of Alaska or has been registered by the IRS as a qualified retailer. File 1040nr online free Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. File 1040nr online free Later sales. File 1040nr online free   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. File 1040nr online free The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. File 1040nr online free However, the sale is not taxable (other than the LUST tax at $. File 1040nr online free 001 per gallon) if all the following requirements are met. File 1040nr online free The fuel is sold in Alaska for certain nontaxable uses. File 1040nr online free The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. File 1040nr online free The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. File 1040nr online free Feedstock purposes. File 1040nr online free   The $. File 1040nr online free 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. File 1040nr online free The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. File 1040nr online free In the case of a removal from a terminal, the terminal is an approved terminal. File 1040nr online free Either: The person otherwise liable for tax uses the kerosene for a feedstock purpose, or The kerosene is sold for use by the buyer for a feedstock purpose and, at the time of the sale, the person otherwise liable for tax has an unexpired certificate (described later) from the buyer and has no reason to believe any information on the certificate is false. File 1040nr online free   If all of the requirements above are not met, then tax is imposed at $. File 1040nr online free 244 per gallon. File 1040nr online free   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. File 1040nr online free For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. File 1040nr online free A feedstock user is a person that uses kerosene for a feedstock purpose. File 1040nr online free A registered feedstock user is a person that has been registered by the IRS as a feedstock user. File 1040nr online free See Registration Requirements, earlier. File 1040nr online free Later sales. File 1040nr online free   The excise tax ($. File 1040nr online free 244 per gallon) applies to kerosene sold for use by the buyer for a feedstock purpose (item (3)(b) above) if the buyer in that sale later sells the kerosene. File 1040nr online free The tax is imposed at the time of the later sale and that seller is liable for the tax. File 1040nr online free Certificate. File 1040nr online free   The certificate from the buyer certifies the buyer is a registered feedstock user and the kerosene will be used by the buyer for a feedstock purpose. File 1040nr online free The certificate may be included as part of any business records normally used for a sale. File 1040nr online free A model certificate is shown in the Appendix as Model Certificate G. File 1040nr online free Your certificate must contain all information necessary to complete the model. File 1040nr online free   A certificate expires on the earliest of the following dates. File 1040nr online free The date 1 year after the effective date (not earlier than the date signed) of the certificate. File 1040nr online free The date the seller is provided a new certificate or notice that the current certificate is invalid. File 1040nr online free The date the seller is notified the buyer's registration has been revoked or suspended. File 1040nr online free   The buyer must provide a new certificate if any information on a certificate has changed. File 1040nr online free Back-up Tax Tax is imposed on the delivery of any of the following into the fuel supply tank of a diesel-powered highway vehicle. File 1040nr online free Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. File 1040nr online free Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. File 1040nr online free Any liquid other than gasoline, diesel fuel, or kerosene. File 1040nr online free Generally, this back-up tax is imposed at a rate of $. File 1040nr online free 244 per gallon. File 1040nr online free Liability for tax. File 1040nr online free   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. File 1040nr online free In addition, the seller of the diesel fuel or kerosene is jointly and severally liable for the tax if the seller knows or has reason to know that the fuel will be used for other than a nontaxable use. File 1040nr online free Exemptions from the back-up tax. File 1040nr online free   The back-up tax does not apply to a delivery of diesel fuel or kerosene for uses 1, 2, 6, 7, 12, 13, 14, and 15 listed under Definitions of Nontaxable Uses in chapter 2. File 1040nr online free   In addition, since the back-up tax is imposed only on the delivery into the fuel supply tank of a diesel-powered vehicle or train, the tax does not apply to diesel fuel or kerosene used as heating oil or in stationary engines. File 1040nr online free Diesel-Water Fuel Emulsion Diesel-water fuel emulsion means diesel fuel at least 14% of which is water and for which the emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. File 1040nr online free A reduced tax rate of $. File 1040nr online free 198 per gallon is imposed on a diesel-water fuel emulsion. File 1040nr online free To be eligible for the reduced rate, the person who sells, removes, or uses the diesel-water fuel emulsion must be registered by the IRS. File 1040nr online free If the diesel-water fuel emulsion does not meet the requirements above, or if the person who sells, removes, or uses the fuel is not registered, the diesel-water fuel emulsion is taxed at $. File 1040nr online free 244 per gallon. File 1040nr online free Credits or refunds. File 1040nr online free   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. File 1040nr online free Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. File 1040nr online free 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). File 1040nr online free For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. File 1040nr online free 219. File 1040nr online free The rate of $. File 1040nr online free 219 also applies if kerosene is removed into any aircraft from a qualified refueler truck, tanker, or tank wagon that is loaded with the kerosene from a terminal that is located within an airport. File 1040nr online free The airport terminal does not need to be a secured airport terminal for this rate to apply. File 1040nr online free However, the refueler truck, tanker, or tank wagon must meet the requirements discussed under Certain refueler trucks, tankers, and tank wagons, treated as terminals, later. File 1040nr online free For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. File 1040nr online free 044 per gallon. File 1040nr online free For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. File 1040nr online free 044 rate applies only if the truck, tanker, or tank wagon is loaded at a terminal that is located in a secured area of the airport. File 1040nr online free See Terminal located within a secured area of an airport, later. File 1040nr online free In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. File 1040nr online free For kerosene removed directly into the fuel tank of an aircraft for a use exempt from tax under section 4041(c) (such as use in an aircraft for the exclusive use of a state or local government), the rate of tax is $. File 1040nr online free 001. File 1040nr online free There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. File 1040nr online free The kerosene must be removed from a qualifying refueler truck, tanker, or tank wagon loaded at a terminal located within a secured area of an airport. File 1040nr online free See Terminal located within a secured area of an airport, later. File 1040nr online free In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. File 1040nr online free The position holder is liable for the $. File 1040nr online free 001 per gallon tax. File 1040nr online free For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. File 1040nr online free 141 per gallon applies. File 1040nr online free Certain refueler trucks, tankers, and tank wagons treated as terminals. File 1040nr online free   For purposes of the tax imposed on kerosene for use in aviation removed directly into the fuel tank of an aircraft for use in commercial aviation, certain refueler trucks, tankers, and tank wagons are treated as part of a terminal if the following conditions are met. File 1040nr online free Such terminal is located within an area of an airport. File 1040nr online free Any kerosene for use in aviation that is loaded in a refueler truck, tanker, or tank wagon at a terminal is for delivery into aircraft at the airport in which the terminal is located. File 1040nr online free Except in exigent circumstances, such as those identified in Notice 2005-80, no vehicle registered for highway use is loaded with kerosene for use in aviation at the terminal. File 1040nr online free The refueler truck, tanker, or tank wagon meets the following requirements: Has storage tanks, hose, and coupling equipment designed and used for fueling aircraft, Is not registered for highway use, and Is operated by the terminal operator or a person that makes a daily accounting to the terminal operator of each delivery of fuel from the refueler truck, tanker, or tank wagon. File 1040nr online free Information reporting will be required by terminal operators regarding this provision. File 1040nr online free Until the format of this information reporting is issued, taxpayers are required to retain records regarding the daily accounting, but are not required to report such information. File 1040nr online free Terminal located within a secured area of an airport. File 1040nr online free   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. File 1040nr online free This list refers to fueling operations at airport terminals as it applies to the federal excise tax on kerosene for use in aviation, and has nothing to do with the general security of airports either included or not included in the list. File 1040nr online free Liability For Tax If the kerosene is removed directly into the fuel tank of an aircraft for use in commercial aviation, the operator of the aircraft in commercial aviation is liable for the tax on the removal at the rate of $. File 1040nr online free 044 per gallon. File 1040nr online free However, the position holder is liable for the LUST tax for kerosene for use in aviation removed directly into the fuel tank of an aircraft for use exempt from tax under section 4041(c) (except foreign trade). File 1040nr online free For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. File 1040nr online free For the aircraft operator to be liable for the tax $. File 1040nr online free 044 rate, the position holder must meet the following requirements: Is a taxable fuel registrant, Has an unexpired certificate (a model certificate is shown in the Appendix as Model Certificate K) from the operator of the aircraft, and Has no reason to believe any of the information in the certificate is false. File 1040nr online free Commercial aviation. File 1040nr online free   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. File 1040nr online free However, commercial aviation does not include any of the following uses. File 1040nr online free Any use exclusively for the purpose of skydiving. File 1040nr online free Certain air transportation by seaplane. File 1040nr online free See Seaplanes under Transportation of Persons by Air in chapter 4. File 1040nr online free Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. File 1040nr online free For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. File 1040nr online free Any use of an aircraft that has a maximum certificated takeoff weight of 6,000 pounds or less, unless the aircraft is operated on an established line. File 1040nr online free For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. File 1040nr online free Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. File 1040nr online free See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. File 1040nr online free Surtax on any liquid used in a fractional ownership program aircraft as fuel Fuel used in a fractional ownership program aircraft (as defined below) after March 31, 2012, is subject to a surtax of $. File 1040nr online free 141 per gallon. File 1040nr online free The fractional ownership program manager is liable for the tax. File 1040nr online free The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. File 1040nr online free If the surtax is imposed, the following air transportation taxes do not apply. File 1040nr online free Transportation of persons by air. File 1040nr online free Transportation of property by air. File 1040nr online free Use of international air travel facilities. File 1040nr online free These taxes are described under Air Transportation Taxes, later. File 1040nr online free A fractional ownership program aircraft flight is considered noncommercial aviation, for the rules for kerosene used in noncommercial aviation, see Kerosene for Use in Aviation above. File 1040nr online free Fractional ownership aircraft program    is a program under which:  A single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners; There are one or more fractional owners per fractional program aircraft, with at least one fractional program aircraft having more than one owner; For at least two fractional program aircraft, none of the ownership interests in the aircraft are less than the minimum fractional ownership interest or held by the program manager; There exists a dry-lease aircraft exchange arrangement among all of the fractional owners; and There are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program. File 1040nr online free Fractional program aircraft. File 1040nr online free   Any aircraft that, in any fractional ownership aircraft program, is listed as a fractional program aircraft in the management specifications issued to the manager of such program by Federal Aviation Administration under subpart K of part 91 title 14, Code of Federal Regulations, and is registered in the U. File 1040nr online free S. File 1040nr online free   Fractional program aircraft are not considered used for transportation of a qualified fractional owner, or on account of such qualified fractional owner when they are used for flight demonstration, maintenance or crew training. File 1040nr online free In such situations, the flight is not commercial aviation. File 1040nr online free Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. File 1040nr online free Fractional owner. File 1040nr online free   Any person owning any interest (including the entire interest) in a fractional program aircraft. File 1040nr online free Dry lease aircraft exchange. File 1040nr online free   An agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as-needed basis without crew, to each fractional owner. File 1040nr online free Special rule relating to deadhead service. File 1040nr online free   A fractional program aircraft will not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service. File 1040nr online free More information. File 1040nr online free   See section 4043 for more information on the surtax. File 1040nr online free Certificate for Commercial Aviation and Exempt Uses A certificate is required from the aircraft operator: To support aircraft operator liability for tax on removal of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation, or For exempt uses. File 1040nr online free Certificate. File 1040nr online free   The certificate may be included as part of any business records normally used for a sale. File 1040nr online free See Model Certificate K in the Appendix. File 1040nr online free   A certificate expires on the earliest of the following dates. File 1040nr online free The date 1 year after the effective date (not earlier than the date signed) of the certificate. File 1040nr online free The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. File 1040nr online free The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. File 1040nr online free   The buyer must provide a new certificate if any information on a certificate has changed. File 1040nr online free   The IRS may withdraw the buyer's right to provide a certificate if the buyer uses the kerosene for use in aviation to which a certificate relates other than as stated in the certificate. File 1040nr online free Exempt use. File 1040nr online free   The rate on kerosene for use in aviation is $. File 1040nr online free 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. File 1040nr online free An exempt use includes kerosene for the exclusive use of a state or local government. File 1040nr online free There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. File 1040nr online free Flash title transaction. File 1040nr online free   A position holder is not liable for tax if, among other conditions, it obtains a certificate (described above) from the operator of the aircraft into which the kerosene is delivered. File 1040nr online free In a “flash title transaction” the position holder sells the kerosene to a wholesale distributor (reseller) that in turn sells the kerosene to the aircraft operator as the kerosene is being removed from a terminal into the fuel tank of an aircraft. File 1040nr online free In this case, the position holder will be treated as having a certificate from the operator of the aircraft if: The aircraft operator puts the reseller's name, address, and EIN on the certificate in place of the position holder's information; and The reseller provides the position holder with a statement of the kerosene reseller. File 1040nr online free Reseller statement. File 1040nr online free   This is a statement that is signed under penalties of perjury by a person with authority to bind the reseller; is provided at the bottom or on the back of the certificate (or in an attached document); and contains: The reseller's name, address, and EIN; The position holder's name, address, and EIN; and A statement that the reseller has no reason to believe that any information in the accompanying aircraft operator's certificate is false. File 1040nr online free Credits or Refunds. File 1040nr online free   A claim may be made by the ultimate purchaser (the operator) for taxed kerosene for use in aviation used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia). File 1040nr online free A claim may be made by a registered ultimate vendor for certain sales. File 1040nr online free For more information, see chapter 2. File 1040nr online free Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. File 1040nr online free Other Fuels include alternative fuels. File 1040nr online free Alternative fuels are: Liquefied petroleum gas (LPG), “P Series” fuels, Compressed natural gas (CNG) (discussed later), Liquefied hydrogen, Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, Liquid fuel derived from biomass, Liquefied natural gas (LNG), and Liquefied gas derived from biomass. File 1040nr online free Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. File 1040nr online free Qualified methanol and ethanol fuels. File 1040nr online free   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. File 1040nr online free The tax rates are listed in the Instructions for Form 720. File 1040nr online free Partially exempt methanol and ethanol fuels. File 1040nr online free   A reduced tax rate applies to these fuels. File 1040nr online free Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. File 1040nr online free The tax rates are listed in the Instructions for Form 720. File 1040nr online free Motor vehicles. File 1040nr online free   Motor vehicles include all types of vehicles, whether or not registered (or required to be registered) for highway use, that have both the following characteristics. File 1040nr online free They are propelled by a motor. File 1040nr online free They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t
Español

Women's Bureau (Labor Department)

The Department of Labor's Women's Bureau works to safeguard the interests of working women, advocates for equality, and promotes quality work environments.

Contact the Agency or Department

Website: Women's Bureau (Labor Department)

Contact In-Person: Find Your Local Women's Bureau Office

E-mail:

Address: U.S. Department of LaborWomen's Bureau
200 Constitution Ave NWRoom S-3002

Washington, DC 20210

Phone Number: (202) 693-6710

Toll-free: (800) 827-5335

The File 1040nr Online Free

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