International Tax Navigator^® provides a solid audit
trail for IRS audits of payments to foreign nationals.

The IRS is focused on compliance for proper tax withholding when making payments to foreign nationals.  Penalties and fines for non-compliance in this area may prove costly to your organization.

Windstar Technologies’ International Tax Navigator can help protect you from potential IRS fines and streamline your processes and procedures in handling payments to foreign nationals.

Custom reports of foreign nationals receiving payments from your organization

Many IRS audits begin with a request for a list of all foreign nationals to whom you have made a payment in a specific year. These payments could include payroll issues as well as payments for financial aid, honoraria, independent personal services, fellowships, prizes and awards, and royalties, among others.

With the Tax Navigator, you can easily supply this information to IRS auditors. The system will generate and print custom reports for the IRS auditors. The reports will include records for each foreign national in the system and how many different income type payments you made during the period in question. Each income type represents a separate 1042-S record.

Payment support documentation

The IRS will randomly select several individuals to whom you have paid various income types and ask for documentation supporting your treatment of these payments. Documentation might include signed Forms W-8BEN, W9, 8233, and 1042-S submissions. Tax Navigator allows you to access and reproduce any IRS forms you created for any individual -- for any year -- with the click of a button. Thus proving that the forms were produced and serving as a reference point to locate the signed forms.

Proof of due diligence

The IRS will select samplings from the above documentation and ask you to provide proof of due diligence performed in determining how to process payments to the individuals under review. This due diligence includes determining tax residency, the availability of and eligibility for tax treaty benefits, and the proper classification of payments.

With the click of a button, Tax Navigator will run sophisticated analyses of tax residency and tax treaty eligibility for each income type associated with an individual, indicating why each type of payment was or was not exempt from tax withholding. The resulting detailed reports are the perfect tool to help document your organization’s due diligence in processing payments to foreign nationals.

Make sure you organization is prepared for an IRS audit!

Contact Windstar Technologies today to learn how
International Tax Navigator can help you face IRS audits.

E-mail sales@windstar.com or call 800-259-6398.

Since 1995 educational institutions, hospitals, research institutions, and corporations have relied on Windstar Technologies, Inc. to deliver the expertise to comply with the U.S. tax residency rules, tax rates, and special tax exemption rules under the law and U.S. treaties. When government agencies require information about foreign nationals in the workplace, Windstar provides straightforward analysis and reporting. Comprehensive software for analysis and reporting, expert knowledge, and unparalleled customer service combine to make Windstar the first choice for nonresident alien tax compliance.