IRS Revises Withholding Rules for Nonresident Alien Employees

On Feb 2, a IRS announced a 2011 procedures for self-denial on salary of nonresident visitor employees who work in a United States (Notice 2011-12). The new procedures request to salary paid on or after Jan 1, 2011.

In 2010, special self-denial procedures were instituted for nonresident aliens since they were not authorised to accept a Sec. 36A creation work compensate credit. Because a 2010 self-denial tables reflected a credit, special procedures were compulsory to safeguard that salary paid to nonresident aliens were not underwithheld.

With a death of a credit (it does not request to salary paid after Dec 31, 2010), employers can once again use a procedures explained in Notice 2005-76 and a tables in Publication 15 (Circular E), Employer’s Tax Guide, to establish a volume of taxation to secrete from salary paid to nonresident visitor employees behaving services in a United States.

About Emil Estafanous, CPA
Certified Public Accountant (CPA) Tax Professional committed in representing taxpayers and resolving their tax problems.

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