Herb Smith <smithff33[at]aol.com> wrote:
- quote -

Oops. typo: An ITIN is requested on a Form W-7.

But in this case a W-8 or W-8BEN is more appropriate.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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

<backon[at]vms.huji.ac.il> wrote:

- quote -

1) He will need something called an ITIN (Individual
Taxpayer Identification Number) instead of a SSN.

2) Exactly what happens will depend upon what country he is
in, but you will likely file a 1042-S (and a 1042) instead
of a 1099. You will also likely have to withhold as much as
30% of what you pay him in withholding tax, and send it to
the IRS, in a way similar to what you do with employees.
Some of this depends on which country is his home country,
and some other factors.

IRS Publication 515 has a lot of information on this issue,
or you might want to have a tax pro get you started.

Bryan

--
-------- Bryan Kellar, EA
Oregon Tax Help, Inc. Portland, Oregon
www.oregontaxhelp.com
www.canadatax.org

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

"backon[at]vms.huji.ac.il" <backon[at]vms.huji.ac.il> wrote:

- quote -

Tell the company to file a 1099 without it. He doesn't
sound like he would be subject to US income tax on this
unless he lives here, works here, or is otherwise subject to
US income tax on other income.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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

backon[at]vms.huji.ac.il wrote:

- quote -

Your colleague needs to apply for an INDIVIDUAL TAXPAYER
IDENTIFICATION NUMBER (ITIN), which is used by individuals
who are not eligible to get a SNN. That is the number that
will go on the 1099-MISC form.

In addition, if tax treaty benefits are claimed on the
income, your colleague needs to fill out, and submit to the
US company, a W-8BEN form. Otherwise, backup withholding of
31% must be held out of the payments.

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

backon[at]vms.huji.ac.il wrote:

- quote -

Oops, the ITIN is requested on form W-9.

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

backon[at]vms.huji.ac.il writes:

- quote -

The payor should consult the instructions for Form W-9:

Advise foreign persons to use the appropriate Form W-8. See
Pub. 515, Withholding of Tax on Nonresident Aliens and
Foreign Entities, for more information and a list of the W-8
forms.

Phil Marti
Topeka, KS

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

A colleague who is not a US citizen and who lives out of the
USA, wants to do contract work for a US proprietary
organization. This organization has to file a 1099 form
(non-employee compensation) which requires his Social
Security number. Catch-22: he obviously doesn't have one. Is
there any way out of this bind ?

Thanks in advance.

Josh

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