Legal issues with withholding 30% from all foreign vendors?

November 10, 2021

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Q.¬†Are there are any legal ramifications of having a policy to withhold the foreign rate of 30% for all reportable foreign vendors even if they apply for a treaty exemption on Form W-8? A. (Answered by a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory compliance for Forms W-9, W-8, W-2, 1099, 1098, 5498, 945, 1042, 1042-S, and state reporting.) The language of Reg. sec. 1.1441-6(a) begins, "The rate of withholding on a payment of income…

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