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DRAFT Publication 515 for use in 2022 Available!

On February 15, 2022, taxpayers and tax professionals received a long-awaited update from the Internal Revenue Service (IRS) with the release of a DRAFT version of Publication 515, titled “Withholding of Tax on Nonresident Aliens and Entities,” intended for use in the tax year 2022. This publication serves as a vital resource for navigating the complexities of withholding tax obligations concerning nonresident aliens and entities, offering essential guidance and instructions to ensure compliance with IRS regulations.

The publication of the DRAFT Publication 515 comes as a welcome development for taxpayers and tax professionals, providing much-needed clarity and direction on withholding tax requirements applicable to nonresident aliens and entities. As the IRS continues its efforts to modernize and streamline tax administration processes, the release of updated guidance such as Publication 515 reflects the agency’s commitment to supporting accurate and efficient tax compliance.

This long-awaited publication includes a number of updates including:

  • Changes to Form 1042-S. New Income Codes to address section 871(m) transactions and section 1446(f) rules, as well as the new limitation on benefits (LOB) code 12 to report that there is no LOB article in the applicable tax treaty.
  • Changes to Forms W-8BEN, W-8BEN-E, W-8ECI, W-8IMY based on the provisions in the final regulations under section 1446(f). There is a note that certain other forms may be revised in 2022. Stay tuned!
  • Changes to Forms 8288 and 8288-A, also based on the provisions in the final regulations under section 1446(f).
  • New form for reporting under section 1446(f)(4) is under development!

Check out the DRAFT Publication 515 here:

https://www.irs.gov/pub/irs-dft/p515–dft.pdf

Click the link below to read through our prior post that covers all changes to the 2022 Form 1042-S:

https://www.complyexchange.com/post/2022-form-1042-s

Make sure to follow Comply Exchange for more industry updates and subscribe to the Comply Catch-up for a full industry round-up at the end of each month!

DRAFT Publication 515 for use in 2022 Available!

This document contains general information only and is not a substitute for accounting, tax, or any other professional advice or services. The information provided is considered accurate at the time of publishing and will not be updated with new regulation requirements.

Comply Connect – March 2024 – Issue 9

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