Events Calendar

Date: Feb 28, 2013 • 04:00 AM - 05:30 AM

Location: Online

This webinar was originally presented on 8/28/2012. Archives are available for six months after this date.

Effective with the 2013 tax year, financial institutions must begin reporting interest on many nonresident alien consumers on IRS form 1042-S.  Are you able to identify your nonresident alien (NRA) members?  Many institutions do not have tax identification numbers on NRA consumers and have even been reporting these members as US persons using interest form 1099-INT instead.  All of this is about to change and your credit union doesn’t have much time to prepare a plan for 2013 and the trillion-dollar business that nonresident aliens have in institutions in the US.

The United States government wants to share information on taxes with other countries.  The rules are changing to allow them to exchange information with other countries that may have information about US citizen accounts overseas.  Therefore, the new regulations will require financial institutions to report interest payments aggregating $10 or more on a deposit maintained at a US office of a financial institution and paid to any nonresident alien individual.  This means that you must have a TIN for nonresident aliens with interest bearing accounts. 

In each calendar year, payors will only be required to report interest on deposits maintained at an office within the United States and paid to a nonresident alien individual who is a resident of a country identified in the Revenue Procedure as of December 31 of the prior calendar year.  These identified countries are those with which the US has an information exchange agreement in effect.  To address any potential burden associated with reporting on this basis, the final regulations provide that for any year for which the information return under Sec. 1.6049-4(b)(5) is required, a payor may elect to report interest payments to all nonresident alien individuals.

HIGHLIGHTS

• Why is this happening?  What is the goal of the US?
• Who is affected?  Which countries?
• Who is a nonresident alien?  How will NRA interest be reported?
• How will this affect W-8BENs?
• Will W-8BENs have to be reported every three years if interest is reported annually?
• What if we can’t tell whether the NRA lives in an affected country? 
• Will the affected countries change every year?
• What should your plan be now to get ready for the change? 
• Do you need to change your CIP on NRAs?  Should more country information be gathered?
• Are there any fines and penalties for noncompliance?
• All of these questions and many more will be answered in this program

WHO SHOULD ATTEND?

This informative session is for new accounts personnel, compliance specialists, BSA officers, deposit operations and anyone who works with interest reporting.
 

Please note: The live webinar option allows you to have one telephone connection for the audio portion and one Internet connection (from a single computer terminal) to view online visuals as the presentation is delivered. You may have as many people as you like listen from your office speaker phone.

ABOUT THE PRESENTER – Deborah L. Crawford, gettechnical inc

Deborah Crawford is the President of gettechnical inc., a Baton Rouge-based firm, specializing in the education of financial institutions across the nation.  Her 27+ years of experience began at Hibernia National Bank in New Orleans.  She graduated from Louisiana State University with both her bachelor’s and master’s degrees.  Debbie specializes in the education of financial institution employees and officers in the area of deposit account laws, new account documentation, insurance, complex compliance regulations, and IRAs. 

For registration options, click here.