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.