Honorarium for Non U.S. Citizens

Honorarium for Non U.S. Citizens

Question: I am inviting a Pastor from a country outside of the US. He will be paid honorarium of $5,000. The visiting clergy does not have any US SSN or ITIN identification.

US does not have any tax reciprocity treaty with the foreign country in question.

What Form do I have him filled (signed) for tax withholding and reporting?

Answer: A nonresident alien is subject to backup withholding unless the church has a signed Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, on file for him.  The church is required to withhold 30% of this income and transmitted to IRS on a timely manner.



***Disclaimer: This communication is not intended as tax advice, and no tax accountant -client relationship results**

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