US Withholding Tax: Operational & Regulatory Compliance

Background

In 2001 The United States Internal Revenue Service promulgated the most complex and advanced withholding tax regulations in the world. With 800 pages of rules, procedures, audit processes and penalties, the impact for financial intermediaries who manage US sourced income was and is immense as US Section 1441NRA regulations became the first example of a compliance focused double taxation regime. The course aims to provide a detailed briefing and current update of the key issues to senior managers and operational staff using strategic level round-table discussions, presentations and technical workshops.

The course will be beneficial for anyone responsible for compliance, risk management, client relationship management, client service strategy, fund or asset management, institutional investment and back office operations. [top]

Benefits

At the end of the course delegates will have:

• Understood the scale and scope of the regulations including their limitations
• The key compliance issues and penalties for failure
• The key operational and structural issues a QI will need to address
• The ability to plan and complete a compliance assessment for their firm
• A knowledge of the audit requirements

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Agenda

Day One

Introduction
History of the regulations
Intent of the IRS
Terminology of the regulations
FAQs
Workshop 1
General issues
KYC – 17 questions and answers
Documentation – rules of evidence to access treaty rates of tax
Presumption rules and when to use them
Workshop 2
Operational issues
Forms 1042, 1099, W8
Publications 515, 1187
Penalties
Workshop 3
Compliance issues
Audits Phase I, II and III
Workshop 4
Review of the day

Day Two

Technical issues
ISO standards – 15022 7 20022
Rate pools – latest rules
Sub-accounting – compliance to the intent of the regulations regarding omnibus & nominee acts
Workshop 5
Treasury issues
Timing of deposits – the formula and how to apply it
Methods of paying tax – EFTPS, ACH
Penalties for over/under withholding
Workshop 6
Reporting issues
Paper vs Electronic – using MCC
NQIs & WAs
Responsibilities – withholding agent outsourcing
Workshop 7
Making it happen
2006/2007 update
Workshop 8
Review of the day
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How To Book

This course is available as a public course at a cost of £975 per delegate (£400 per online delegate). Available dates for 2010 are:

23/24 March – London 27/28 April – Sydney 16/17 Nov – Copenhagen

If your would like to take a public course, but find that the dates above are not suitable, then please contact us to express your interest, as further dates may become available if there is sufficient demand.
Please note: Course dates and locations may be subject to change.

This course is also available on an in-house basis. Click here for our current prices. To discuss your training needs, please complete our booking form and we will get in touch.
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