The Latest Trend In W3 Form 3b | W3 Form 13b
Due to the new denial and advertisement obligations beneath Chapter 4 of the Foreign Annual Tax Compliance Act (FATCA), Anatomy 1042-S underwent abundant changes in 2014. The changes are advised to board advertisement of advice apropos to both Internal Revenue Cipher Chapter 3 denial at antecedent on acquittal to non-U.S. individuals and Chapter 4 FATCA advice and reporting.
Form 1042-S (Foreign Person’s U.S. Antecedent Assets Accountable to Withholding):
Box 1 – Assets Cipher Boston University primarily uses the afterward assets codes: 10-Industrial Royalties 16-Scholarships and Fellowship Grants 17-Compensation for absolute claimed casework (Independent Contractor, Honorarium) 18-Compensation for abased claimed casework 19-Compensation for teaching (including some analysis income) 20-Compensation during belief and training 23-Other Assets (Awards and Prize Payments)
Box 2 – Gross Assets The absolute dollar bulk of paid to the alone by Boston University in the agenda year. If an agent had a tax treaty, the absolute bulk paid that was absolved from federal assets beneath the tax treaty; the allocation of the accomplishment that were accountable to federal assets tax denial is appear on IRS Anatomy W-2.
Box 3 – Chapter 3 Denial On anniversary Anatomy 1042-S, either box 3 Chap 3. or box 4 Chap 4. charge be checked. Chapter 3 denial is arrested for Non-Resident Conflicting withholding. Wages, fellowships or scholarships, honoraria, awards and prizes, and ability payments are all appear beneath Chapter 3 withholding. Box 3a – Ch. 3 Exemption code: 00 – Indicates that these payments were not absolved from federal assets tax withholding. 04 – Indicates that these payments were absolved from federal assets tax denial beneath a tax treaty. Box 3b – Ch. 3 Tax rate: either 0, 14, 0r 30 based on the allotment of the acquittal that were withheld for federal taxes.
Box 4 – Chapter 4 Denial On anniversary Anatomy 1042-S, either box 3 Chap 3. or box 4 Chap 4. charge be checked. Chapter 4 denial is arrested for FATCA withholding. Box 4a – Ch. 4 Exemption Code: 16 – Excluded non-financial payments, including wages, scholarships, honoraria, and awards/prizes.
Box 12 – Denial Agent Advice Box 12a – Employer Identification Cardinal (EIN); Boston University’s IRS-issued tax identification number. Box 12b – Ch. 3 Cachet code; Boston University’s cachet cipher is 20 (Tax Absolved Organization). Box 12c – Ch. 4 Cachet code; Boston University’s cachet cipher is 24 (Section 501(c) Entities). Box 12h-12i – Employer/Withholding Agent’s name and address.
Box 13 – Recipient Advice Box 13a – Recipient’s name, abode and country; the name and abiding abode Payroll has on file. Box 13b – Recipient’s country code; the country of abode for tax purposes and associated IRS country code. Box 13e – Recipient’s U.S. TIN; this box lists the recipient’s U.S. Social Security Cardinal (SSN) or Alone Taxpayer Identification Cardinal (ITIN). Note: If no SSN or ITIN has been provided to Payroll, again this box will be blank. Foreign nationals who do not accept a U.S. SSN or ITIN are accountable to accepting their alone tax allotment alone by the IRS as able-bodied as actuality potentially accountable to assessments by the University for IRS penalties incurred on their behalf. Non-citizen individuals are acerb apprenticed to administer for a U.S. SSN or ITIN and to address the cardinal to the Payroll Office anon aloft cancellation to abstain any tax complications or assessments. Box 13k – Recipient’s annual number; the recipient’s Boston University ID number; for formatting reasons, the BUID is preceded by a zero.