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Old 07-27-2003, 06:58 AM
Frederick Jorden
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Default Re: Federal rewards, Tax free?

- quote -

> > > The Sadam boys' informant looks to collect both $15 million
> > > rewards. Are these tax free?


> > Depends on the tax laws, or lack thereof, of the Iraqui
> > nation.
> > > (I can see it now: U S Treasury official demanding a W-9

> > form from the pigeon. "Otherwise, we have to withhold
> > 31%!")


> As the claimants are presumably non-resident aliens, they
> will be required to file a W-8BEN (or some other variety of
> W-8), rather than a W-8. Documentary proofs of identity and
> residence in a foreign country will be required. Originals
> of the documents, or a copy certified by a US notary, must
> be presented.


Even if paid out of the US. Does that mean that all
nonresident alien employees of say an Australian branch of
Ford have to fill out that form? We are taking about things
outside the jurisdiction of the US.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Old 07-26-2003, 01:27 AM
Vladimir Menkov
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Posts: n/a
Default Re: Federal rewards, Tax free?

- quote -

> > The Sadam boys' informant looks to collect both $15 million
> > rewards. Are these tax free?


> Depends on the tax laws, or lack thereof, of the Iraqui
> nation.
> (I can see it now: U S Treasury official demanding a W-9
> form from the pigeon. "Otherwise, we have to withhold
> 31%!")


As the claimants are presumably non-resident aliens, they
will be required to file a W-8BEN (or some other variety of
W-8), rather than a W-8. Documentary proofs of identity and
residence in a foreign country will be required. Originals
of the documents, or a copy certified by a US notary, must
be presented.

--vld.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->
  #-1  
Old 07-25-2003, 02:28 AM
Harlan Lunsford
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Posts: n/a
Default Re: Federal rewards, Tax free?

hfs2 wrote:

- quote -

> The Sadam boys' informant looks to collect both $15 million
> rewards. Are these tax free?


Depends on the tax laws, or lack thereof, of the Iraqui
nation.

(I can see it now: U S Treasury official demanding a W-9
form from the pigeon. "Otherwise, we have to withhold
31%!")

cheer$,
Harlan Lunsford, EA in LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->
 

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