3/22/2017 UNC FINANCIAL CONFERENCE. Foreign National Taxation Update. Presenter. Agenda. March 13, 2017

Transcription

1 UNC FINANCIAL CONFERENCE Foreign National Taxation Update March 13, 2017 Presenter Jennifer Pacheco, Statewide Tax Compliance Program NC Office of the State Controller Disclaimer: The information within this presentation does not constitute tax/legal advice and each participant should seek his/her own counsel in addressing specific situations. 2 Agenda 1042 Annual Tax Filing Spring Batch Processing Revised Withholding Forms NC-30 and NC-4NRA Tax Navigator Changes Training Schedule 3 1

2 1042 Annual Tax Filing IRS Due Date - March 15 Extensions for IRS filings available NC DOR Filing Due Date March 15/April Tax Year Feedback? Box 9 Tax Paid by Withholding agent encouraged NOT to use this box. Limitation-of-benefit error message Annual Tax Filing (cont.) 2016 Tax Year Feedback? (cont.) Issues with box 65a and 65B 5 Spring Batch Processing Tax Assessment Processing Updating Immigration History in Tax Nav. Running Substantial Presence Test Performing the Treaty Analysis Preparing the appropriate Tax Forms W-4 NC-4NRA or NC-4 W-8BEN 8233 sending to the IRS FICA Refund developed Certification for FICA refund per IRS Requirements 6 2

3 New Forms/Instructions (cont.) W-8BEN-E Issued August 2016 Required use January 1, 2017 Requires LOB - ble_4.pdf NO LOB Countries until new treaty is ratified Greece Hungary Pakistan Philippines Poland Romania 9CIS (Former USSR) Countries 7 New Forms/Instructions (cont.) W-8BEN-E (cont.) All entities claiming a treaty benefit must check the box directly to the right of the b, and an entity tax resident of a country with an LOB article must also check one of the other boxes in this item specifying the specific LOB provision for which it qualifies. 8 New Forms/Instructions (cont.) 8233 New instructions issued October 2016 for March 2009 form Instructions specify not to use for Public Entertainers New Fax Number Review the Common Errors noted on page 3 9 3

4 NC-30 and NC-4NRA NC-30 Provides the instructions for the use of the NC-4NRA or NC Withholding Single regardless of marital status No withholding certificate withhold single, 0 and the additional withholding 10 NC Nonresident Tax 4% All services performed by ITIN individuals in excess of $1,500 cumulatively will be subject to the 4% withholding provisions Nonresidents (i.e. Virginia, Georgia, Canada) receiving in excess of $1,500 per calendar year in connection with a performance, an entertainment or athletic event, a speech, or the creation of a film, or radio, or television program are subject to the 4% withholding (EIN, SSN, ITIN) Tax Treaties may exempt the 4% CWA do not exempt the 4% 11 Common Errors Batch Processing FICA Exemptions on/off W-4 with NRA on line 6 Ensuring the additional taxes has been withheld (IRS Notice 1036) NC-4NRA Not withholding the additional deduction Vendor Payments Ensuring your F.N. tax team reviews your foreign vendor payments Review at the transaction level Payments made with P-card Wire Payments 12 4

5 Sequel version of Tax Navigator 2017 Year of Migration for North Carolina Reason for change Systems are running slower Systems are crashing Advanced Features Running Parallel Test Environments Access and Sequel cannot be active on the same machine. Utility Navigator has been moved into Security Administrator Ability to send s s will be stored in your sent folder compliance with achieve requirements 13 WHEN Tax Deposits MUST be Made Largest opportunity for IRS penalties and interest!!! U.S. SOURCE WITHHOLDING ON FOREIGN PERSONS Amount of Deposit (Tax Withholding) IRS Deposit Requirements IF at Year-End, Less than $200 Deposit or submit with Form 1042 by March 15 IF at Month-End, More than $200 and Less than $2,000 IF on the 7th, 15th, 22nd, or last day of the month, More than $2,000 Deposit within 15 days of Month-End Deposit within 3 banking days 14 North Carolina Tax Deposits Online Filing and Payments Due end of January Required 2016 Tax Year Automatic waiver was provided for 2016 TY 3 options for uploading Tutorial

6 2017 Training Curriculum th Annual Foreign National Taxation and Immigration Compliance Conference October 11-12, 2017 at NCSU McKimmon Center Webinars have posted: March 29 Basic Taxation April 12 Tax Navigator Training Focus Trainings May 24 Accounts Payable June 21 Payroll Processing July 12 Student Accounts December 13 Annual Batch Processing Year-end Training 16 OSC Statewide Tax Compliance Jennifer Pacheco Address: Jennifer.Pacheco@osc.nc.gov 17 THANK YOU! 6