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Reducing Risk
What every multinational company should know about international tax information reporting and withholding
The IRS has identified withholding taxes under IRC sections 1441, 1442, and 1443 as an area where multinational companies are often noncompliant.Consequently, the IRS is ramping up efforts to become smarter, more efficient, and more aggressive at recognizing instances of noncompliance. Noncompliant multinationals could be subject to 30% withholding tax on U.S. source FDAP payments, as well as significant interest and penalties. When combined, these amounts can quickly grow to substantial liabilities.
The IRS has identified withholding taxes under IRC sections 1441, 1442, and 1443 as an area where multinational companies are often noncompliant.Consequently, the IRS is ramping up efforts to become smarter, more efficient, and more aggressive at recognizing instances of noncompliance. Noncompliant multinationals could be subject to 30% withholding tax on U.S. source FDAP payments, as well as significant interest and penalties. When combined, these amounts can quickly grow to substantial liabilities.
Contacts
- Stuart Finkel
- TPDG leader
- Tel: +1 (646) 471 0616
- Dominick Dell'Imperio
- Tax
- Tel: +1 (646) 471 2386
- Candace Ewell
- Tax
- Tel: +1 (202) 312 7694
