On Demand

A Breakdown of FIRPTA and the Tax Withholding Requirements of Foreign Persons (Audio Only)

1h 8m

Created on April 02, 2020




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.

Learning Objectives:

  1. Gain a comprehensive understanding of the requirements for withholding taxes from nonresident aliens or foreign entities

  2. Identify the role of a withholding agent and its liability for tax on U.S. income

  3. Discuss Chapter 3 of the Internal Revenue Code, including withholding requirements on a payment of U.S. source income

  4. Review Chapter 3 documentation and filing requirements, including Form 1042 and Form 1042-S reporting obligations

  5. Analyze Internal Revenue Code Section 1445, including withholdings on dispositions of U.S. Real Property Interests under FIRPTA

  6. Examine best practices for documentation under FIRPTA

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