global Tax Withholding Agent Responsibilities for 2016 January 15, 2016 Disclaimer This post was published more than two years ago, and some information may now be out of date. We want to help you make the best decisions possible—please connect with your advisor or check out our latest resources for the most current guidance. 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.
