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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.

A payment is considered made to a person if it is paid for that person's benefit.

This liability is independent of the tax liability of the foreign person to whom the payment is made. 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.

If you fail to withhold and the foreign payee fails to satisfy its U. tax liability, then both you and the foreign person are liable for tax, as well as interest and any applicable penalties. In no case, however, should you withhold more than 30% of the total amount paid.

In addition to discussing the rules that apply generally to payments of U. source income to foreign persons, it also contains sections on the withholding that applies to the disposition of U. real property interests and the withholding by partnerships on income effectively connected with the active conduct of a U. Otherwise, you can go to IRS.gov/Order Forms to order current and prior-year forms and instructions. In addition, withholding must be done by any QI, withholding foreign partnership, or withholding foreign trust in accordance with the terms of its withholding agreement, discussed later.

As a withholding agent, you are personally liable for any tax required to be withheld. tax liability, you are not liable for the tax but remain liable for any interest and penalties for failure to withhold.

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Withholding is required at the time you make a payment of an amount subject to withholding.

The IRS will not mail error reports for files that are bad. 1187 for information on the requirements for filing Form 1042-S electronically. Requests on Form 8809 for an extension of time to file Form 1042-S should be made electronically. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. "Chapter 4" refers to chapter 4 of Subtitle A (sections 1471 through 1474) of the Internal Revenue Code. 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. branch of certain foreign banks and insurance companies.

You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 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. person who pays an amount subject to chapter 3 withholding is the person responsible for withholding.

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. partnership should withhold when any distributions that include amounts subject to withholding are made.

A payment also is considered made to a person if it is made to that person's agent. However, if a foreign partner's distributive share of income subject to withholding is not actually distributed, the U. 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. 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.

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