Non-resident foreign entertainers or athletes working in the United States as independent contractors may now find themselves paying less federal income tax if they enter into a central withholding agreement with the Internal Revenue Service.
This would then allow them to take home more of their earnings for work done in the States. Those who qualify would be required to submit detailed documentation, including copies of their work contracts, a schedule of when and where they will be performing while in the US, a list of the people responsible for providing such amenities as lodging and transportation during the run of the contract and a proposed budget containing itemised estimates of all gross income and expenses for the period covered by the agreement. A request for a central withholding agreement should be sent to the following address at least 90 days before the contract is to take effect.
International Territory Mgr, SB/SE
Taxpayer Education and Communication (International)
Internal Revenue Service, S:T:3 (Int’l)
1111 Constitution Ave, NW LE-3311
Washington, DC 20224
Applicants must refer to revenue procedure 89-47, CB 1989-2, 598 in their letter. For more information on this programme click here.