PRIMARY CONTACTS: Mary D. Richter CPA
Payments to all foreign persons, including nonresident alien individuals, foreign entities and governments, may be subject to NRA withholding. Generally, a foreign person is subject to U.S. tax on its U.S. source income. Most types of U.S. source income received by a foreign person are subject to U.S. tax of 30%, unless a reduced rate, including exemption, applies.
FATCA isset of rules designed to assistthe IRS in collecting taxes owed by foreign persons that receive payments from U.S. businesses. It impacts nearly all non-U.S. entities that receive most types of U.S. source income. Failure to comply with FATCA withholding regulations can result in increased tax liability, penalties and fines for non-compliance.
Under FATCA, your foreign payees are likely to be subject to the 30% withholding tax. Withholdable payments commonly include U.S. source dividends, rents, interest, royalties, salaries, wages, annuities or other fixed, determinable, annual or periodic income; gross proceeds from the sale or disposition of U.S. property that could produce interest or dividends; or interest paid by a foreign branch of a U.S. bank.
Schneider Downs’ professionals can assist in:
About Schneider Downs Tax Advisors
With one of the largest regional tax practices in the country, Schneider Downs Tax Advisors’ personal focus on clients and in-depth understanding of current issues ensures that clients are complying with tax filing requirements and maximizing tax benefits. Our industry knowledge and focus ensures delivery of technical tax strategies which can be implemented as practical business initiatives. Learn more at Tax Services.
Big Problem: Company Impacted By Ransomware.
Big Thinking: Restore System On-site And Avoid Six-figure Ransom.
Big Problem: Inefficient Tax Credit Realization.
Big Thinking: Identified A $900,000 Tax Credit, Nearly Twice As Much As Prior Years.
There is an oft-used phrase from an old proverb that says, “you can’t have your cake and eat it too.”…
Read More >The United States is in the midst of an election season, which brings discussions, debates and decisions. Internal Revenue Code…
Read More >Valuing a startup company can create a cornucopia of challenges. Unlike valuations for an established business, a valuation analyst does…
Read More >The National Public Data (NPD) breach is emerging as 2024’s defining cybersecurity incident, but what sets this breach apart? After…
Read More >A couple of months ago, CDK Global was victim to a cyberattack, prompting them to halt most of their services…
Read More >Receive all the latest insights and industry tips.
Schneider Downs is a Top 60 independent Certified Public Accounting (CPA) firm providing accounting, tax, audit and business advisory services to public and private companies, not-for-profit organizations and global companies. We also offer Internal Audit; Technology Consulting; Software Solutions; Personal Financial Services; Retirement Plan Solutions and Corporate Finance Services. Schneider Downs is the 13th largest accounting firm in the Mid-Atlantic region and serves individuals and companies in Pennsylvania (PA), Ohio (OH), West Virginia (WV), New York (NY), Maryland (MD), and additional states in the United States with offices in Pittsburgh, PA, Columbus, OH, and McLean, VA.
© 2024 Schneider Downs & Co., Inc. Maryland license number 35239.
Every moment counts. For urgent requests, contact the Schneider Downs digital forensics and incident response team at 1-800-993-8937. For all other requests, please complete the form below.
"*" indicates required fields