global Tax Withholding Agent Responsibilities for 2016 January 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.