Posts filed under the Nonresidents category.

U.S. Taxation of Foreign Corporations

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The United States imposes income taxes on foreign corporations only if they are engaged in business in the United States or receive income from sources within the United States.  In general the rules governing U.S. taxation of a foreign corporation’s income is the similar as the rules for a nonresident alien.

Entity options for a foreign corporation engaged in US trade or business

“U.S.trade or business” is not defined in the tax code or regulations.

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W-8 Forms for Foreign Aliens and Entities

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A W-8 form for all foreign aliens/entities is needed for all payments. The IRS requires a mailed original ink signed and dated form to be obtained. A faxed copy or emailed copy is not acceptable. There are four types of W-8 forms. The foreign alien/entity will need to determine the type of form that applies to them. If you complete Form W-8 you will not receive Form 1099. However, you may receive Form 1042-S which reports compensation,

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