Payment a legal settlement to a foreign citizen

June 15, 2020


Q. We are making a legal settlement payment to the estate of U.K citizen. Will this payment be 1099 reportable or 1042-S reportable? If the foreign estate provides Form W-8 and claim their tax treaty with U.S., then will it be not withholdable, but 1042-S reportable? The settlement is also U.S.-source income and 1042-S reportable CH3 income? 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,…

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