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

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

1. INTRODUCTION The table below summarizes foreign person withholding and reporting under 26 C.F.R. §1.1441-1. For the purposes of 26 C.F.R. §1.1441-1, “individual” is defined as: 26 C.F.R. § 1.6041-4 – Foreign-related items and other exceptions. (3) Individual— (i) Alien individual.  The term alien individual means an individual who is not a citizen or a national of the United States.…

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Lawfully Avoiding Foreign Person Withholding

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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