The foreign entertainers that I deal with always present a W-9 from their U.S. Corporation or a W-8BEN from their foreign corporation; therefore the need for a CWA doesn’t exist…..right?
If you are presented with either a W-8BEN for a foreign corporation, a W-9 for a U.S. corporation, partnership or LLC, the IRS views the corporation, partnership or LLC as acting as an agent of artist, a foreign person. Consequently, under Treas. Reg. §1.1441-1(b)(2)(ii), you must treat any payment to such a corporation as being made directly to artist and, therefore, you must withhold U.S. income taxes accordingly. A withholding agent is indemnified against all claims and demands of artist relating to the withholding under IRC §1461. Treasury Regulation section 1.1441-1(b)(2)(ii) reads in part, “[a] withholding agent making a payment to a U.S. person . . . who has actual knowledge that the U.S. person receives the payment as an agent of a foreign person must treat the payment as made to the foreign person.” This means that if the withholding agent is making a payment to a U.S. corporation or other U.S. entity knowing or having reason to know that the U.S. corporation or U.S. entity is
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