A foreign person can be subject to U.S. tax on their U.S. source income under the Internal Revenue Code. This course provides a deeper look into the requirements for withholding U.S. tax on payments made to a foreign person. Topics to be discussed include how much tax to withhold, the documentation and returns required, and the exceptions to the withholding requirements. The program, led by experienced tax attorney Sara Holland, also covers the general categories of withholding and their requirements, with a closer look at holdings subject to the Foreign Investment in Real Property Tax Act (“FIRPTA”). Additionally, the discussion will cover withholding agent liability and best practices for compliance under the Internal Revenue Code.
Gain a comprehensive understanding of the requirements for withholding taxes from nonresident aliens or foreign entities
Identify the role of a withholding agent and its liability for tax on U.S. income
Discuss Chapter 3 of the Internal Revenue Code, including withholding requirements on a payment of U.S. source income
Review Chapter 3 documentation and filing requirements, including Form 1042 and Form 1042-S reporting obligations
Analyze Internal Revenue Code Section 1445, including withholdings on dispositions of U.S. Real Property Interests under FIRPTA
Examine best practices for documentation under FIRPTA
Sara Holland is a partner in the Newark and New York offices of Lewis Brisbois and a member of the Corporate and Tax Practices. Ms. Holland began her career as a litigator, serving as in-house counsel for a national insurance carrier and sat first chair on a dozen jury trials. Her pro bono work with Trial Lawyers Care and the New York Coalition for Healthy School Food prompted Ms. Holland to focus on exempt organizations and tax law. She earned her LLM in taxation in 2015 and brought her perspective as a litigator to her corporate and tax practices.
After practicing at a prominent New Jersey law firm, Ms. Holland joined Lewis Brisbois in 2019. She focuses on mid-market mergers and acquisitions, business succession planning, tax deferred exchanges, tax-free reorganizations, and maximizing the tax benefits of tax credits and estate planning. Ms. Holland works with business owners to create partnerships, limited liability companies, and corporate entities, including entity formation and the tax considerations of such ventures. She also advises clients on the tax implications of buying or selling partnership interests, membership interests, and shareholder interests, as well as the tax filings at both the entity level and partner/member level. Ms. Holland frequently counsels her clients on the drafting and revising of partnership agreements, operating agreements, and shareholder agreements. Ms. Holland counsels her clients on 1031 exchanges, Qualified Opportunity Zones, SALT, energy credits, exempt organization law, and asset protection following major liquidity events. Her corporate clients are located nationwide and internationally, which allows Ms. Holland to work closely with her business practice group colleagues located in Lewis Brisbois offices across the country. Ms. Holland continues to represent exempt organizations and guides her nonprofit clients on matters relating to programming, corporate governance, state and federal exempt organization law.