mark[at]youronlinecpa.com (Mark Haymore) wrote:
- quote -

This is what I found as well.

So I should not be concerned that I will be reporting
consulting expenses on my Partnership Return Form 1065,
without any corresponding documentation submitted to the IRS
indicating the destination of those payments?

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DaveR <NOSPAM_drubin[at]NOSPAM_i-2000.com> wrote:

- quote -

According to my research in this area, the source of the
income determines the type of reporting. If the payments
were for personal services conducted in Greece, nothing
would need to be reported to the IRS as it would not be
considered "US Source" income. I'm not sure if Greece would
require some type of report that you might be obligated by
treaty or otherwise to submit.

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DaveR <NOSPAM_drubin[at]NOSPAM_i-2000.com> wrote:

- quote -

Assuming that the US-Greece treaty reduces the withholding
tax to zero, I believe that you still have to file Form
1042-S and you probably also have to file the form (I forget
the number) for "Treaty-based return positions".

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Bryan Kellar" <bryan[at]oregontaxhelp.com> wrote:
- quote -

I'm pretty sure withholding is NOT necessary based on the
US-Greece treaty.

As for reporting, I'm just not sure. I'm accustomed to
sending form 1099 to US-based contractors. Based on my
research it seems that I do NOT have to report these
payments to the IRS, but I want to be sure to follow the
rules.

Unfortunately my accountant is not familiar with foreign
payments.

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"DaveR" <NOSPAM_drubin[at]NOSPAM_i-2000.com> wrote:

- quote -

Question back to you: What makes you think that withholding
or reporting is necessary in this case? (That makes it
easier to see why you might have thought differently.)

Anyway, it appears that the US-Greece tax treaty may be
favorable to your subcontractor, as long as he is earning
his money there and is not present in the US over 183 days
in the year.

Bryan

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

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We are a LLC taxed as a Partnership. We paid a subcontractor
located in Greece. I have not been able to find definitive
information on how to report to the IRS (if necessary).

We received a W-8BEN form and therefore did not withhold any
taxes. I believe we may need to report the payments to the
IRS using form 1042-S, but then I've also heard that it may
not be necessary.

Any advice would be appreciated.

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