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?
If no one withholds and the artist does not file a U.S. return, everyone is liable – the organization, the agency, and the individual artist. I bring in artist groups from a European country with which there is a tax treaty and have helped them acquire a Federal Tax ID number. As the W-8BEN form has been filled in, signed by the artist group and shared with the presenting venue, no income tax has been withheld before monies have been paid to foreign based artist groups. Should each individual artist and member of these groups still file an individual U.S. tax return for their share of personal income they have each received from these monies, even though they may have filed an individual return on their side with the country in which they are legally based? If a group is exempt from tax and withholding pursuant to a tax treaty, the U.S. presenter’s liability ends with obtaining a valid W-8BEN from the group.
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?
- How does an agency, government, organization or interested individual request Floodplain Management Services assistance from USACE?
