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USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1237
Experience:  US Taxation specialist.
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Here is the fact pattern: 4 member LLC registered in Iowa 1

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Here is the fact pattern:
4 member LLC registered in Iowa
1 non-resident alien is a partner
We have obtained an ITIN number for this member
This member is from China
Based on treaty information he is subject to 10% withholding
There will be a distribtion to all members based on ownership percentages

Here are the questions:
1) Does the non resident alien need to submit a W8-BEN to the LLC
2) What form accompaniies the submission of the withholding amount to the IRS
3) Is the LLC required to file a 1042 or 1042-S because of this wiithholding
4) When is the withholding form due and if a 1042 is required when is that form due

Can you also provide your source document for the answer. I have read (and reread pub 515 and the instructions for the W-8, 1042-S and 1042) One final thing is that I use Proseries for my clients and it does not support the 1042. That may or may not have meaning.

USTaxAdvising :

Hello, Thank you for using justanswer. I can assist you with your questions today.

USTaxAdvising :

Yes the non resident alien needs to submit a W8-BEN to the LLC.

USTaxAdvising :

2) The LLC would file Form 1042 and Form 1042S and T to report the withholding. See links here:

Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons -,-Annual-Withholding-Tax-Return-for-U.S.-Source-Income-of-Foreign-Persons
USTaxAdvising :

3) Yes (I should have read further before answering #2)

USTaxAdvising :

4) The withholding and Form 1042 is required to be filed and paid by March 15. You can apply for a one month extension though.

USTaxAdvising :

The 1042 is pretty straightforward. You can use the fillable forms from the IRS.

USTaxAdvising :

Let me know if you have any further questions.

USTaxAdvising :




Thank you for your answer. This is what I had gleaned from my reading but it is good to get a second opinion

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