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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I am about to do some contracting with an individual in Egypt

Resolved Question:

I am about to do some contracting with an individual in Egypt ( he does go under a company name) He will be doing work for me in different countries (consulting construction projects using american made equipment) and will be invoicing me on a monthly basis for payment. I will be transfering the funds due on the invoices to his bank account in Egypt. I know the man well and we were both wanting to know if any special paper work is required in order to be legal in both countries. On my end I will profit and the income reported in the proper way by my llc corporation to the I.R.S.
Submitted: 5 years ago.
Category: Tax
Expert:  Merlo replied 5 years ago.
Hello johnm,

Anytime that you make payments to a foreign person or to a foreign company, you must withhold 30% of the payment to cover federal taxes. Your friend in Egypt will also need to fill out a Form W-8BEN for you. This form has the same purpose as the W-9 that we use here in the US for independent contractors, and will give you the information on this person that you need to supply to the IRS. As the withholding agent for this tax, you will then submit this tax to the IRS. The frequency of your payments will depend on the total amount you withhold.

Here is a link to an IRS publication which describes in more detail the withholding requirements on a foreign person or foreign company.

http://www.irs.gov/pub/irs-pdf/p515.pdf

The person in Egypt will have to file a tax return at the end of the year with the IRS using form 1040NR as a non resident. When he files this form, he may be able to get back some of the tax which was withheld after he reports his expenses and deductions.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you john, and let me know if you have additional questions.





Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Merlo and 4 other Tax Specialists are ready to help you
Customer: replied 5 years ago.

NEW QUESTION.

 

In my business I traveled a great deal over the last 23 years out of the country sometimes gone for over two years. In 1985 I became involved with a little girl just born. To make a long story short through a great deal of effort and expense the same little girl is in the U.S. and most of the time with my wife and I. I have been trying to find her father over the years with no success. I do have the following information.

 

1- His name. 2- His brother in laws phone as well as his ex wife and old passport number etc. He was from Scotland (Great Britain) Can you possibly help me with this.

Expert:  Merlo replied 5 years ago.
Hello again john,

I am only a tax consultant with this website, and that is where my area of expertise ends.

The Just Answer website is broken down in to different categories of experts, such as legal, tax, financial, medical questions, car questions, etc. There is no one particular area that I know of on this website that deals with help in locating people, so I am not sure there is really even anyone on this website that I can refer you to for help.

It seems to me on the surface that you at least have some substantial starting information, so possibly someone from our UK Law team would have some suggestions for you. You can post a new question in that category, and of course if you do not get a satisfactory answer, you do not have to Accept the answer, and would therefore not be charged. So that is where I would suggest you start.

Good luck john, in locating this girl's father.



Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Merlo and 4 other Tax Specialists are ready to help you

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