Reporting prize money withholding on a 1042-S

March 25, 2020

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Q. If a payer chooses to pay the 30% withholding for a foreign individual for a prize, what would we put for the gross pay for the individual? Your webinar said to put the tax in box 11. Is there anything else we need to do? Will that individual understand that they cannot claim that payment on their tax returns?  A.  (Answered by COKALA Tax Information Reporting Solutions, LLC, a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory compliance…

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