Does every individual have to file a U.S. tax return, regardless of whether they are an independent contractor for a U.S.-based organization, or an employee of a foreign organization?
Generally, yes. There is an exemption for artists who are performing as employees, if they make less than the amount of their personal exemption in a given year. The personal exemption amount for the 2007 tax year is $3,400, but this amount is subject to change by the IRS every year. One can determine the current personal exemption amount by going to www.irs.gov and searching “personal exemption.” Our artists have found it difficult to obtain a U.S. tax ID, although tax is invariably withheld from their pay. Since these artists are likely overpaying U.S. taxes, are there any other risks being run by our artists in not submitting or being unable to submit a U.S. tax return through lack of a tax ID number? Artists who perform in the U.S. are required to file U.S. tax returns. However, the penalty for failure to file a return is based on the amount of tax owed. Therefore, if the amount withheld exceeds the amount of tax that would be owed, there is no actual risk in failing to file a tax
Related Questions
- If the foreign individual does not file a U.S. tax return, and an organization makes a payment through a U.S. management agency, who would the IRS require to pay the penalty – the organization, or the agency? Is the original payer liable?
- Does every individual have to file a U.S. tax return, regardless of whether they are an independent contractor for a U.S.-based organization, or an employee of a foreign organization?
- As a non-resident individual in the US, do I need to file a U.S. tax return?
