Withholding Agent Responsibilities for 2016January 15, 2016
Withholding agents have important responsibilities – the penalties for ignoring them just went up.
Are you a US withholding agent? In light of changes to the penalty regime that applies to negligent US withholding agents, it is crucial that you understand whether or not you are a withholding agent and what withholding tax related responsibilities you have.
How do I know if I am a withholding agent?
A withholding agent is any person that is required to:
- Withhold tax at source on a payment of U.S. source income to a foreign person;
- Remit the tax withheld in a timely manner; and
- Report the amount of income and related tax withheld to the payee and the IRS in a timely and accurate manner.
Read more about withholding agents’ responsibilities and the increased penalties for failing to timely and accurately file required information returns in our article, “Are you a Withholding Agent? Increasingly Onerous Penalties Enacted”.
Questions? Contact any member of our KLR Global Tax Services Group.