Withholding and Reporting

How to avoid withholding and reporting on foreign persons

Using W-4 as a Nonresident Alien

By ftsig-admin / August 31, 2024 / Comments Off on Using W-4 as a Nonresident Alien

1. Introduction This article addresses how to use and not use the W-4 as a nonresident alien. Generally, you should avoid filling out the W-4 and only use it under duress. The correct form to use for withholding instead is the IRS Form W-8BEN or W-8SUB: 2. Why private people can’t lawfully submit a W-4…

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The Federal Income Tax Is A Tax Upon Income (investments), Not Upon Capital (employments).

By ftsig-admin / August 30, 2024 / Comments Off on The Federal Income Tax Is A Tax Upon Income (investments), Not Upon Capital (employments).

The following offsite reference deals with this subject: https://capitalvsincome.com/the-federal-income-tax/

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Lawfully Avoiding Backup Withholding under 26 U.S.C. §3406

By ftsig-admin / August 12, 2024 /

1. Introduction Those who claim to be “nonresident aliens” not engaged in a “trade or business” are sometimes subjected to unlawful backup withholding by ignorant financial institutions and private employers who refuse to read and obey the law as written.  This section will provide tools and procedures to fight such forms of involuntary servitude and…

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Foreign Person Reporting and Withholding Summary

By ftsig-admin / August 9, 2024 / Comments Off on Foreign Person Reporting and Withholding Summary

1. INTRODUCTION This article addresses “foreign person” reporting and withholding, which means anyone who does not CONSENT to the privileged civil status of “U.S. person”, INCLUDING American Nationals wishing to remain foreign. Two forms are used to implement “foreign person” withholding and reporting: Withholding agents as defined in 26 U.S.C. §7701(a)(16) are the only one…

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Lawfully Avoiding Foreign Person Withholding

By ftsig-admin / July 28, 2024 /

TABLE OF CONTENTS: 1. Introduction Privileged “U.S. persons” are not subject to withholding or reporting under 26 U.S.C. §1441, but “foreign persons” can be. This is a trick to get you to “elect” the DOMESTIC “U.S. person” status under 26 U.S.C. §7701(a)(30) and to scare you away from being “foreign” but not a “person” status…

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